Question

Record the following transactions of Mr. Chavan in a cash book with cash and bank columns for the month April. 2011.

2011 Apr.
1	Cash Balance Rs 56,000 Bank overdraft Rs 11,000.
3	Purchased goods for Rs 13,000 for cash at 2% cash discount.
6	Received a bearer cheque for Rs 13,250 in full settlement of Rs 13,500 from Govind Traders.
9	Purchased 100 shares of Amar Ltd. of Rs 100 each at Rs 110 each and paid by cheque the
	amount immediately.
11	Sold goods of Rs 7,000 at 5% cash discount to Pramod and he paid half the amount immediately.
14	Deposited into bank Rs 11,000.
17	Received a crossed cheque for Rs 18,000 from Gajanan Traders.
20	Bank paid our telephone bill Rs 3,230.
21	Bank charged Rs 540 as interest on overdraft.
22	Paid by cheque to Urmila Rs 8,000.
25	Deposited into bank the cheque received from Govind Traders.
27	Received a bearer cheque for Rs 3,460 for rent which was deposited into bank.
29	Bank informed that the cheque received for rent was dishonoured.
30	Paid life insurance premium of Mr. Chavan Rs 4,250 by cash and electricity bill Rs 7,400 by cheque.

Answer 1

In the Books of Mr. Chavan
Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)
April 2011					April 2011
1	Balance b/d		56,000	–	1	Balance b/d		–	11,000
					3	Purchases A/c		12,740	–
11	Sales A/c		3,325	–	9	Investment in Shares A/c		–	11,000
14	Cash A/c	C	–	11,000	14	Bank A/c	C	11,000	–
17	Gajanna Traders			18,000	20	Telephone Expenses A/c		–	3,230
25	Cheques in Hand A/c		–	13,250	21	Interest A/c		–	540
27	Rent A/c		–	3,460	22	Urmila		–	8,000
					29	Rent Receivable A/c		–	3,460
					30	Drawings A/c		4,250	–
					30	Electricity Bill A/c		–	7,400
					30	Balance c/d		31,335	1,080
			59,325	45,710				59,325	45,710

Note: The journal entry for transaction dated April 17,2011 i.e. cheque received from Gajanan Traders is recorded in Jounal proper and not in the cash book:

Cheques-in-Hand A/c Dr.
To Gajanan Traders A/c