Which of these will not be recorded in cash book/account?

Two months rent of Rs. 5000 paid in advance

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One year insurance premium Rs.9000 paid in advance

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Goods purchased on 3 months credit

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Goods worth Rs. 5900 sold cash

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Solution

The correct option is D Goods purchased on 3 months credit
Goods purchased on credit does not involve any outflow of cash therefore, it will not be recorded in cash book.

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The insurance premium paid is recorded as Rs 4,500 in cash book, however the same is shown as Rs 9,000 in passbook. What shall be the effect in BRS if starting point is cash book balance?

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(i) Bank balance as per Cash Book Rs 8,600
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(iv) Cheque of Rs 2,800 deposited into the Bank but not Credited by Bank
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Prepare a simple cash book of Mr. Shriram from the following details:

2011 Feb.
1.	Balance of cash Rs 65,500.
2.	Brought additional capital Rs 12,000.
4.	Received from Nilesh on account Rs 3,800.
7.	Purchased goods from United Ltd. Rs 16,000 and paid half the amount immediately.
9.	Received commission from Aarti Traders Rs 2,650.
10.	Paid to Prithviraj Traders on account Rs 17,800.
13.	Purchased stationery for office use Rs 2,460.
17.	Received rent Rs 4,900.
20.	Paid Rs 1,750 for insurance premium.
22.	Sold goods for cash Rs 13,800.
25.	Purchased 10% debentures Rs 20,000.
27.	Paid telephone bill Rs 3,000 and electricity bill Rs 2,340.
28.	Deposited into bank all cash in excess of Rs 11,000.

Q. Rs

3, 50, 000

cash paid to creditors for settlements of credit purchases will be recorded in _______________.

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Which of these will not be recorded in cash book/account?

The correct option is D Goods purchased on 3 months creditGoods purchased on credit does not involve any outflow of cash therefore, it will not be recorded in cash book.

The correct option is D Goods purchased on 3 months credit
Goods purchased on credit does not involve any outflow of cash therefore, it will not be recorded in cash book.