Prepare Two-column Cash Book from the following transactions of Mani, Kochi;

2018

March 1 Cash in Hand ₹ 15,000; Cash at Bank ₹ 5,000

March 3 Purchased goods for cash ₹ 6,720 including CGST and SGST @ 6% p.a; received discount of ₹ 220

March 5 Deposited into bank ₹ 5,000

March 7 Cash sales ₹ 10,000 plus CGST and SGST @ 6% each

March 10 Cash withdrawn from Bank for Office use ₹ 2,000

March 15 Received three months post dated cheque of ₹ 20,000 from Raj and deposited in the bank on the same day, discounted from bank paying discounting charges ₹ 750

March 18 Received cheque from Deepak for ₹ 5,000 (not banked), allowed discount ₹ 200

March 20 Cheque received from Deepak deposited in Bank

March 22 Paid to Chandra by cheque ₹ 2,500; received discount ₹ 100

March 25 Withdrew from bank for personal use ₹ 1,000

March 28 Sold goods on credit to Ashok Mitra, Kolkata ₹ 10,000, charged IGST @ 12%

March 30 Purchased goods on credit from Chander, Delhi ₹ 20,000, paid IGST @ 12%

March 31 Received cheque from Ashok Mitra ₹ 5,000 and deposited in bank, allowed cash discount ₹ 200

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Solution

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

(Rs)

Bank

(Rs)

Date

Particulars

L.F.

Cash

(Rs)

Bank

(Rs)

2018

2018

Mar. 01
Balance b/d
15,000

5,000

Mar. 03
Purchases A/c
5,780

Mar.05 Cash A/c C 5,000 Mar. 03 Input CGST A/c 360

Mar. 07 Sales A/c 10,000 Mar. 03 Input SGST A/c 360

Mar. 07
Output CGST A/c
600

Mar. 05
Bank A/c C
5,000

Mar. 07
Output SGST A/c
600

Mar. 10
Cash A/c C

2,000

Mar. 10
Bank A/c C
2,000

Mar. 22
Chandra

2,500

Mar. 15 Raj 19,250
Mar. 25
Drawings A/c

1,000

(Cheques-in-hand)

Mar. 31 Balance c/d 16,700 33,750

Mar. 20
Cheques in hand

5,000

Mar. 31
Ashok Mitra

5,000

28,200

39,250

28,200

39,250

Note: Accordong to our calculations, the closing balances of Cash Column and Bank Column are 16,700 and 33,750 respectively. However, according to Text Book the closing balances are 14,700 and 33,750 respectively.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit
Amount

Rs

Mar. 18

Cheques-in-hand A/c

Dr.

5,000

To Deepak

5,000

(Cheque received from Deepak but not deposited the same day)

Mar. 30

Ashok Mitra
To Sales A/c
To Output IGST A/c
(Sold goods @ 12% IGST on credit)

Purchases A/c
Input IGST A/c
To Chander
(Goods purchased @ 12% IGST on credit)

Dr.

Dr.
Dr.

11,200

20,000
2,400

10,000
1,200

22,400

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Q. Prepare Two-column Cash Book from the following transactions of Mani, Kochi:

2019
March 1	Cash in Hand ₹ 15,000; Cash at Bank ₹ 5,000
March 3	Purchased goods for cash ₹ 6,720 including CGST and SGST @ 6% p.a; received discount of ₹ 220
March 5	Deposited into bank ₹ 5,000
March 7	Cash sales ₹ 10,000 plus CGST and SGST @ 6% each
March 10	Cash withdrawn from Bank for Office use ₹ 2,000
March 15	Received three months post dated cheque of ₹ 20,000 from Raj and deposited in the bank on the same day, discounted from bank paying discounting charges ₹ 750
March 18	Received cheque from Deepak for ₹ 5,000 (not banked), allowed discount ₹ 200
March 20	Cheque received from Deepak deposited in Bank
March 22	Paid to Chandra by cheque ₹ 2,500; received discount ₹ 100
March 25	Withdrew from bank for personal use ₹ 1,000
March 28	Sold goods on credit to Ashok Mitra, Kolkata ₹ 10,000, charged IGST @ 12%
March 30	Purchased goods on credit from Chander, Delhi ₹ 20,000, paid IGST @ 12%
March 31	Received cheque from Ashok Mitra ₹ 5,000 and deposited in bank, allowed cash discount ₹ 200

Q. Prepare Two-column Cash Book of Vinod, Delhi from the following transactions:


2018		₹
Oct. 1	Cash in Hand	25,000
Oct. 1	Cash at Bank	75,000
Oct. 7	Bought goods for ₹ 15,000 plus IGST @ 12% against cheque
Oct. 8	Bought goods for ₹ 5,000 plus CGST and SGST @ 6% each
Oct. 10	Honoured our own acceptance by cheque	5,000
Oct. 14	Paid petty expenses	150
Oct. 18	Ramesh who owed ₹ 5,000 became bankrupt and paid us 50 paise in a rupee
Oct. 20	Received cash from Manohar	7,500
	Allowed discount	250
Oct. 23	Withdrew from bank	4,000
Oct. 24	Paid to Ghanshyamdas & Co.	3,000
	Received discount	100
Oct. 25	Withdrew from bank for personal expenses	3,000
Oct. 27	Sold goods for ₹ 11,000 plus CGST and SGST @ 6% against cash
Oct. 28	Received cheque for goods sold for ₹ 9,000 plus CGST and SGST @ 6% each
Oct. 29	Received repayment of a loan of ₹ 5,000 and deposited ₹ 3,000 out of it into bank

Q. Prepare a Two Column Cash Book from the following transactions∶−

2016
May 1	Cash at office ₹ 72.
	Bank overdraft ₹ 1,250.
4	Received from Prem Chand a cheque for ₹ 1,875 in full settlement of his account of ₹ 1,900. The cheque was banked on the same day.
5	Bought goods and paid by cheque ₹ 500.
6	Narinder settled his account of ₹ 700 by a cheque. This was banked on the same day.
9	Paid to Manohar Lal by a cheque for ₹ 420. Discount received ₹ 80.
12	Cash sales to date ₹ 400 of which ₹ 300 were banked.
17	Sold old typewriter for cash ₹ 320.
20	Received a cheque for ₹ 400 from Naresh in full settlement of his account of ₹ 460. The cheque is endorsed to Suresh on 24th May in full settlement of his account of ₹ 420.
25	Received a cheque from Hari Prakash for ₹ 150. The cheque is endorsed to Raj Prakash on 27th May; Discount received ₹ 30.
28	Withdrew from Bank for office use ₹ 100 and for personal use ₹ 100.
29	WIthdrew (from office) for payment of private bills ₹ 425.
30	Paid by cheque salaries ₹ 160 and rent ₹ 100.
31	Bank charges as per Pass Book ₹ 5.

Q. Prepare Two-column Cash Book of Bimal, Lucknow from the following transactions:

2019		₹	2019		₹
June 1	Cash Balance	5,000	June 21	Drawn from Bank	5,000
June 1	Bank Balance	17,500	June 29	Paid office salaries in cash	4,000
June 5	Cash received from sale of personal asset deposited in firm's account	5,000	June 30	Sold goods in cash for ₹ 8,000 plus CGST and SGST @ 6% each and banked the same
June 6	Cheque received as advance against sale, paid into bank	50,000	June 30	Paid rent by cheque including CGST and SGST @ 6% each	1,120
June 7	Paid S. Bose by cheque	12,500	June 30	Paid into Bank	7,500
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Q. From the following transactions, prepare Cash Book with Cash and Bank Columns:−

2016		(₹)
May 1	Cash in hand	4,800
	Bank Overdraft	30,400
2	Fresh Capital introduced	20,000
3	Deposited into Bank	15,000
4	Sold goods to Mahesh on Credit	6,200
5	An amount of ₹ 4,200 due from Ashok written off as bad debts in the previous year, now recovered.
6	Withdrew from bank for the payment of Life Insurance Premium	3,000
8	Received a cheque form Mahesh for ₹ 6,000 in full settlement of his account and deposited the same into the Bank.
10	Sold goods to Varun on Credit.	30,000
12	Received a cheque for ₹ 28,000 from Varun in full settlement.
15	Cheque received from Varun sent to Bank
18	Varun's cheque returned by Bank dishonoured. Bank charged ₹ 25 on this cheque.
20	Received a cheque of ₹ 6,800 from Vijay which was endorsed to AmritRaj on 23rd May.
25	Withdrew cash from Bank ₹ 5,000 for paying gift to his daughter on her birthday.
26	Bought goods from Gupta General Store for ₹ 10,000 on credit and they allowed us trade discount of 25%.
28	Paid to Gupta General Stores in cash in full settlement	7,000
28	Sale of old machinery, payment received in cash ₹ 7,700.
30	Paid Salary by cheque ₹ 1,500. Paid Rent in cash ₹ 2,200.
31	Paid into Current Account the entire balance after retaining ₹ 5,000 at office.

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	Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)
2018					2018
Mar. 01	Balance b/d		15,000	5,000	Mar. 03	Purchases A/c		5,780
Mar.05	Cash A/c	C		5,000	Mar. 03	Input CGST A/c		360
Mar. 07	Sales A/c		10,000		Mar. 03	Input SGST A/c		360
Mar. 07	Output CGST A/c		600		Mar. 05	Bank A/c	C	5,000
Mar. 07	Output SGST A/c		600		Mar. 10	Cash A/c	C		2,000
Mar. 10	Bank A/c	C	2,000		Mar. 22	Chandra			2,500
Mar. 15	Raj			19,250	Mar. 25	Drawings A/c			1,000
	(Cheques-in-hand)				Mar. 31	Balance c/d		16,700	33,750
Mar. 20	Cheques in hand			5,000
Mar. 31	Ashok Mitra			5,000

			28,200	39,250				28,200	39,250

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
Mar. 18	Cheques-in-hand A/c	Dr.		5,000
	To Deepak				5,000
	(Cheque received from Deepak but not deposited the same day)
Mar. 30	Ashok Mitra To Sales A/c To Output IGST A/c (Sold goods @ 12% IGST on credit) Purchases A/c Input IGST A/c To Chander (Goods purchased @ 12% IGST on credit)	Dr. Dr. Dr.		11,200 20,000 2,400	10,000 1,200 22,400