NCERT Solutions for Class 11-commerce Accountancy Part I Chapter 4 - Recording of Transactions - II

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Chapter 4 - Recording of Transactions - II Exercise 152

Question SA 1

Briefly state how the cash book is both journal and a ledger.

Solution SA 1

Transactions are recorded directly from source documents in the cash book, so there is no need to record transactions in the journal book. Further, on the basis of the cash transactions recorded in the cash book, cash and bank balances can be determined, and so there is no need to prepare cash account (which is a part of ledger) separately. Thus, the cash book serves the purpose of both journal as well as ledger.

The need to record transactions in the journal book ceased to exist as the transactions are recorded directly from source documents in the cash book. A ledger is simply a collection of credit/debit and balances. However, in a cash book, cash and transactions can be determined just on the basis of cash transactions recorded in it. Thus, the cash book serves the purpose of both journal and a ledger.

Question SA 2

What is the purpose of contra entry?

Solution SA 2

The cash deposits or withdrawals from bank i.e. transactions recorded both on the credit and the debit side can be termed as a contra entry. Transactions which effect both cash and bank balances are indicated by the contra entry. The transactions are recorded in the bank column on the receipt side (Dr.) side and in the cash column on the payment (Cr.) side, on the day of the deposit to the bank. A contra entry is denoted by 'C' in the ledger folio column.

Question SA 3

What are special purpose books?

Solution SA 3

All the transactions relating to any small business can be recorded in one book or a journal. However, as the business expands, recording each and every transaction can be a Herculean task, To simplify it, the journals were divided into special journals or special purpose books. Following were the special purpose books:

 i. Cash book

 ii. Purchases book

 iii. Purchases return book

 iv. Sales book

 v. Sales return book

 vi. Journal proper

These special purpose books made accounting work easier and economical.

Question SA 4

What is petty cash book? How it is prepared?

Solution SA 4

Every organisation needs to keep a record of even the smallest expenses such as on telegrams, postage, conveyance and few others. Such kind of expenses may also be termed as petty expenses. Large organisations, who want to minimise the burden on the accounting, apart from their cashier, appoints petty cashier to maintain a record of the petty expenses. These petty expenses are recorded in the petty cash book which is maintained by the petty cashier.

A petty cash book may be maintained by ordinary system or by imprest system are as follows:

  1. A petty cash book is prepared using the ordinary system. In this, petty cashier is given an appropriate amount of cash and after spending the whole amount, he submits the accounts to the cashier.
  2. A petty cash book is prepared using the imprest system. In this, an imprest amount, a fixed amount is given to the cashier at the start of a certain period. This imprest amount is used up to make the small payments. By the end of the period, the cashier gets a reimbursement for the amount paid. Thus, the cashier will have a full imprest amount at the start of the next period.
Question SA 5

Explain the meaning of posting of journal entries.

Solution SA 5

Posting is the process of transferring the business transactions from cash book/journal to ledgers.

All the transactions are first recorded in the journal and subsequently transferred to their respective accounts.

Question SA 6

Define the purpose of maintaining subsidiary journal.

Solution SA 6

All the transactions relating to any small business can be recorded in one book or a journal. However, as the business expands, recording each and every transaction through journal entry can be a Herculean task, To simplify and in order to save time and effort, the journals were divided into special journals or special purpose books. These special purpose books infused higher degree of accountability to the accountants for the specific subsidiary journal assigned to them and made it easier, economical.

Subsidiary journals are, thus, maintained for the following purposes:

  1. Work is divided to enhance efficiency and effectiveness
  2. Saves time and efforts while recording the transactions
  3. Records transactions of similar nature
Question SA 7

Write the difference return inwards and return outwards between

Solution SA 7

Return Inwards

Return Outwards

Goods sold to the customers, are returned by them.

Goods purchased are returned to the suppliers.

It has debit balance.

It has credit balance.

It is deducted from sales in the trading account.

It is deducted from purchases in the trading account.

Credit note is prepared by the seller.

Debit note is prepared by the buyer.

It reduces the payment from the debtors.

It reduces the payment made to the creditors.

It is also termed as sales returns.

It is also termed as purchases returns.

 

 

Question SA 8

What do you understand by ledger folio?

Solution SA 8

All the transactions recorded in the journal and is later transferred to a ledger. A ledger has each page or folio pointing to different account number. This ledger folio number corresponding to that account is then entered in the folio column in the journal. This helps in easily locating the account in the ledger. This ensures that all entries are posted and thus saves time in rechecking and recording.

Question SA 9

What is the difference between trade discount and cash discount?

 

Solution SA 9

Trade Discount

Cash Discount

It is allowed when goods are purchased or sold.

It is allowed at the time of payment.

It is recorded in a invoice/bill but not in the books.

It is recorded in the discount column of the Cash Book's debit side, if allowed, and credit side, if received.

It is allowed to increase sale.

It is allowed for earlier payment.

It is deducted from the price-list of the goods.

It is not deducted from the price-list of the goods.

 

Question SA 10

Write the process of preparing ledger from a journal.

Solution SA 10

The process of preparing ledger from Journal can be explained with the help of an example. Let us suppose that machinery is purchased from Mr. X, so, the journal entry will be:

Machinery A/c

Dr.

 35,000

 

To Mr. X Account

 

 

35,000

 

In this example, Machinery Account is debited and Mr. X Account is credited. Let us understand the process of preparing ledger from the journal entry.

Account which is debited in the entry:

Step 1: Identify the account in ledger that is debited, i.e., 'Machinery Account'.

Step 2: Enter date in the debit side of the 'Machinery Account' in the 'Date' column.

Step 3: Enter the name of the account as 'Mr. X Account' (which is credited in the entry) in the 'Particulars' column in the debit side of the Machinery Account.

Step 4: Enter the page number of the journal, where the entry is recorded in the 'J.F.' (journal folio) column.

Step 5: Post the corresponding amount in the 'Amount' column, which is recorded against 'Machinery Account' in the journal entry.

Account which is credited in entry:

Step 1: Identify the account in ledger that is credited, i.e., 'Mr. X Account'.

Step 2: Enter date in the credit side of 'Mr. X Account' in the 'Date' column.

Step 3: Enter the name of the account as 'Machinery Account' (which is debited in the entry) in the 'Particulars' column in the credit side of the 'Machinery Account'.

Step 4: Enter the page number of the journal where the entry is recorded in the 'J.F.' (journal folio) column.

Step 5: Post the corresponding amount in the 'Amount' column, which is recorded against 'Mr. X Account' in the journal entry.

Question SA 11

What do you understand by imprest amount in petty cash book?

Solution SA 11

A petty cash book is prepared using the imprest system. In this, an imprest amount, a fixed amount is given to the cashier at the start of a certain period. This imprest amount is used up to make the small payments. By the end of the period, the cashier gets a reimbursement for the amount paid. Thus, the cashier will have a full imprest amount at the start of the next period.

For example, if the main cashier gives an imprest amount of Rs.3000 to the petty cashier on May 01, 2014 and at the end of the month the petty expenses amount spent by the petty cashier sums up to be Rs.2500. In this case, Rs.2500 will be reimbursed, so, that on June 01, 2014, the petty cashier will have Rs.3,000 at his disposable to meet petty expenses for the next month.

Question LA 1

Explain the need for drawing up the special purpose books.

Solution LA 1

The need for drawing up the special purpose book is given below:

  1. Easy posting of similar natured transactions: Posting becomes a lot easier if we are able to record similar transactions at one place as most of the businesses have similar and repetitive transactions.
  2. Comprehensive information at one place: All transaction information related to purchases, sales, cash receipts and payments are easily available and is hassle-free.
  3. Quick and efficient recording: It is a time consuming process to record all the transactions in a journal. If there are separate books, then recording of transactions can be done more efficiently and timely. So, the need of special purpose book arises.
  4. Economical: It is more economical as recording through the special purpose books saves time and also enhances the efficiency of accountants and clerks.
Question LA 2

What is cash book? Explain the types of cash book.

Solution LA 2

Cash book is a book of original entry which it records all transactions related to payments of cash, receipts and deposits in and withdrawals from a bank on a monthly basis. Cash book also serves the purpose of both journal and a ledger.

Ncert Solutions Cbse Class 11-commerce Accountancy Part I Chapter - Recording Of Transactions Ii 

  1. Single Column Cash Book: A single column cash book contains one column of amount on both sides i.e. one in the debit side and other on the credit side. In this, cash transactions are recorded in a chronological order. All cash receipts are recorded on the debit side of the cash book, while side all cash payments are recorded on the credit side.
  2. Double Column Cash Book: A double column cash book contains two columns of amount, namely cash column and bank column on both sides. On the left side, the payments to the bank were recorded and the right side had all the payments/withdrawals from the bank.

Cash Book

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash Rs. 

Bank Rs. 

Date

Particular

L.F.

Cash Rs. 

Bank Rs. 

 

 

 

 

 

 

 

 

 

 

 

  1. Triple Column Cash Book: In a triple column Cash Book, there are three columns of amount namely, cash, bank and discount. Discount allowed and discount received are recorded in the discount column. While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque; whereas, in the credit side, discount received is recorded, along with the payments made either in cash or by issuing cheques.
  2. Petty Cash Book: Large organisations, who want to minimise the burden on the accounting, apart from their cashier, appoints petty cashier to maintain a record of the petty expenses. These petty expenses are recorded in the petty cash book which is maintained by the petty cashier.
Question LA 3

What is contra entry? How can you deal this entry while preparing double column cash book?

Solution LA 3

The cash deposits or withdrawals from bank i.e. transactions recorded both on the credit and the debit side can be termed as a contra entry. Transactions which effect both cash and bank balances are indicated by the contra entry. The transactions are recorded/showed in the bank column on the receipt side (Dr.) and in the cash column on the payment (Cr.) side, on the day of the deposit to the bank. A contra entry is denoted by 'C' in the ledger folio column.

For example, Rs.500 cash was deposited into the bank. This transaction increases the bank amount on one hand and on the other hand, reduces the cash balance. In this entry, on the debit side of the cash book, 'Cash' will be recorded with a balance of Rs.500 in the bank column and on the credit side of the cash book, 'Bank' will be recorded with a balance of Rs.500 in the cash column. This entry is a contra entry as it affects both cash and bank balance together. The contra entries are denoted by 'C'.

Some transactions which lead to contra entry are given below.

  1. Opening a bank account
  2. Depositing cash into bank
  3. Withdrawal from bank 

These transactions are recorded in a double column Cash Book as given below.

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash Rs. 

Bank Rs. 

Date

Particulars

L.F.

Cash Rs. 

Bank Rs. 

 

 

 

 

 

 

 

 

 

 

 

Chapter 4 - Recording of Transactions - II Exercise 153

Question LA 4

What is petty cash book? Write the advantages of petty cash book.

Solution LA 4

Every organisation needs to keep a record of even the smallest expenses such as on telegrams, postage, conveyance and few others. Such kind of expenses may also be termed as petty expenses. Large organisations, who want to minimise the burden on the accounting, apart from their cashier, appoints petty cashier to maintain a record of the petty expenses. These petty expenses are recorded in the petty cash book which is maintained by the petty cashier.

A petty cash book is prepared using the imprest system. In this, an imprest amount, a fixed amount is given to the cashier at the start of a certain period. This imprest amount is used up to make the small payments. By the end of the period, the cashier gets a reimbursement for the amount paid. Thus, the cashier will have a full imprest amount at the start of the next period.

The performance of petty cash book is given below.

Petty Cash book

Receipts

Rs. 

Date 

V. No.

 

Particulars  

Total

Payment Rs.  

Analysis of Payments 

 

 

 

 

 

Stationery  

Conveyance  

Telephone and 

Telegram  

Miscellaneous  

 

Advantages of Petty Cash Book: 

  1. Error free and control efficiency: All the recorded transactions are audited at the end of the period by the main cashier.
  2. Saves time: Saves time of the main cashier in recording the transactions.
  3. Easy posting: Entries are recorded under separate headings, which makes posting easier and quicker.
Question NUM 1

Enter the following transactions in a simple cash book for December 2016:

 

 

 Rs.

01

Cash in hand

12,000

05

Cash received from Bhanu

4,000

07

Rent paid

2,000

10

Purchased goods Murari for cash

6,000

15

Sold goods for cash

9,000

18

Purchased stationery

300

22

Cash paid to Rahul on account

2,000

28

Paid salary

1,000

30

Paid rent

500

Solution NUM 1

CASH BOOK

Dr.

 

 

 

 

 

 

Cr.

Date

Receipts

L.F.

Amount

Rs.

Date

Payments 

L.F.

Amount

Rs.

2016

 

 

 

2016

 

 

 

Dec 01

To Balance b/d

 

12,000

Dec 07

By Rent A/c

 

2,000

Dec 05

To Bhanu A/c

 

4,000

Dec 10

By Purchases A/c

 

 

6,000

Dec 15

To Sales A/c

 

9,000

Dec 18

By Stationery A/c

 

 

300

 

 

 

 

Dec 22

By Rahul A/c

 

2,000

 

 

 

 

Dec 28

By Salary A/c

 

1,000

 

 

 

 

Dec 30

By Rent A/c

 

500

 

 

 

 

Dec 31

By Balance c/d

 

13,200

 

 

 

25,000

 

 

 

25,000

2017

 

 

 

2017

 

 

 

Jan 1

To Balance b/d

 

13,200

 

 

 

 

 

Question LA 5

Describe the advantages of sub-dividing the Journal.

Solution LA 5

All the transactions relating to any small business can be recorded in one book or a journal. However, as the business expands, recording each and every transaction through journal entry can be a Herculean task, To simplify and in order to save time and effort, the journals were divided into special journals or special purpose books. These special purpose books infused higher degree of accountability to the accountants for the specific subsidiary journal assigned to them and made it easier and economical.

The advantages of sub-division of journal are:

  1. Work divided to enhance efficiency and effectiveness: If there is large number of transactions, multiple entries are to be entered into the journal which will be a tough task. Sub-dividing the journals will be flexible and will enable different accountants to work on different books at a time.
  2. Sense of accountability: These special purpose books infuse higher degree of accountability to the accountants for the specific subsidiary journal assigned to them.
  3. Saves time and efforts: The subsidiary books were brought in place in order to reduce an accountant's time spent on gathering and recording transactions all together in a single journal. Here, work and the journals are divided so as to save time and efforts.
  4. Records transactions of similar nature: Special purpose books are assigned to record transactions of similar nature so as to get a ready and easy access to such information. Also, any information regarding any transactions can be easily located in a subsidiary book as compared to a journal.
Question NUM 2

Record the following transactions in simple cash book for November 2016:

 

 

Rs.

01

Cash in hand

12,500

04

Cash paid to Hari

600

07

Purchased goods

800

12

Cash received from Amit

1,960

16

Sold goods for cash

800

20

Paid to Manish

590

25

Paid cartage

100

31

Paid salary

1,000

Solution NUM 2

 

CASH BOOK

Dr.

 

 

 

 

 

 

Cr.

Date

Receipts

L.F.

Amount

Rs.

Date

Payments

L.F.

Amount Rs. 

2016

 

 

 

2016

 

 

 

Nov 01

To Balance b/d

 

12,500

Nov 04

By Hari A/c

 

600

Nov 12

To Amit A/c

 

1,960

Nov 07

By Purchases A/c

 

800

Nov 16

To Sales A/c

 

800

Nov 20

By Manish A/c

 

590

 

 

 

 

Nov 25

By Cartage A/c

 

100

 

 

 

 

Nov 30

By Salary A/c

 

1,000

 

 

 

 

Nov 30

By Balance c/d

 

 

12,170

 

 

 

15,260

 

 

 

15,260

Dec 1

To Balance b/d

 

12,170

 

 

 

 

 

 

Question LA 6

What do you understand by balancing of account?

Solution LA 6

At the end of each accounting period, quarterly, monthly, weekly or fortnightly, the net effect of each amount in the accounts specified in the ledger are balanced and calculated. When the two sides, the credit and the debit, are balanced, it is termed as balancing of an account. The difference between the two sides is calculated and the side which is falling short of reaching the total is mentioned. 'Balance c/d' is written against the difference amount which will be written on the debit side, if the credit exceeds the debit, known as credit balance and 'Balance b/d' on the credit side, if the debit exceeds the credit, known as debit balance.

Question NUM 3

Enter the following transaction in simple cash book for December 2017:

 

 

Rs.

01

Cash in hand

7,750

06

Paid to Sonu

45

08

Purchased goods

600

15

Received cash from Prakash

960

20

Cash sales

500

25

Paid to S. Kumar

1,200

30

Paid rent

600

Solution NUM 3

CASH BOOK

Dr.

 

 

 

 

 

 

Cr.

Date

Receipts

L.F.

Amount

Rs.

Date

Payments

L.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec 01

To Balance b/d

 

7,750

Dec 04

By Sonu A/c

 

45

Dec 15

To Prakash A/c

 

960

Dec 08

By Purchases A/c

 

600

Dec 20

To Sales A/c

 

500

Dec 25

By S. Kumar A/c

 

1,200

 

 

 

 

Dec 30

By Rent A/c

 

600

 

 

 

 

Dec 31

By Balance c/d

 

6,765

 

 

 

9,210

 

 

 

9,210

2018

 

 

 

2018

 

 

 

Jan 1

To Balance b/d

 

6,765

 

 

 

 

 

 

Question NUM 4

Record the following transactions in a bank column cash book for December 2016:

 

 

Rs.

01

Started business with cash

80,000

04

Deposited in bank

50,000

10

Received cash from Rahul

1,000

15

Bought goods for cash

8,000

22

Bought goods by Cheque

10,000

25

Paid to Shyam by cash

20,000

30

Drew from bank for office use

2,000

31

Rent paid by cheque

1,000

Solution NUM 4

CASH BOOK

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

2016

 

 

 

 

2016

 

 

 

 

Dec

01

To Capital A/c

 

80,000

 

Dec

04

By Bank A/c

C

50,000

 

Dec

04

To Cash A/c

C

 

50,000

Dec

15

By Purchases A/c

 

8,000

 

Dec

10

To Rahul A/c

 

1,000

 

Dec

22

By Purchases A/c

 

 

10,000

Dec

30

To Bank A/c

C

2,000

 

Dec

25

By Shyam A/c

 

20,000

 

 

 

 

 

 

Dec

30

By Cash A/c

C

 

2,000

 

 

 

 

 

Dec

31

By Rent A/c

 

 

1,000

 

 

 

 

 

Dec

31

By Balance c/d

 

5,000

37,000

 

 

 

83,000

50,000

 

 

 

83,000

50,000

2017

 

 

 

 

2017

 

 

 

 

Jan 1

To Balance b/d

 

5,000

37,000

 

 

 

 

 

 

 

Chapter 4 - Recording of Transactions - II Exercise 154

Question NUM 5

Prepare a double column cash book with the help of following information for December 2016:

 

 

Rs.

01

Started business with cash

1,20,000

03

Cash paid into bank

50,000

05

Purchased goods from Sushmita

20,000

06

Sold goods to Dinker and received a cheque

20,000

10

Paid to Sushmita cash

20,000

14

Cheque received on December 06,2010 deposited into bank

 

18

Sold goods to Rani

12,000

20

Cartage paid in cash

500

22

Received cash from Rani

12,000

27

Commission received

5,000

30

Drew cash for personal use

2,000

Solution NUM 5

CASH BOOK

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

2016

 

 

 

 

2016

 

 

 

 

Dec

01

To Capital A/c

 

1,20,000

 

Dec

 03

By Bank A/c

C

50,000

 

Dec

03

To Cash A/c

C

 

50,000

Dec

10

By Sushmita A/c

 

20,000

 

Dec

06

To Dinker A/c

 

20,000

 

Dec

14

By Bank A/c

C

20,000

 

Dec

14

To Cash A/c

C

 

20,000

Dec

20

By Cartage A/c

 

500

 

Dec

22

To Rani A/c

 

12,000

 

Dec

30

By Drawings A/c

 

2000

 

Dec

27

To Commission A/c

 

5,000

 

Dec

31

By Balance b/d

 

64,500

70,000

 

 

 

1,57,000

70,000

 

 

 

1,57,000

70,000

2017

 

 

 

 

2017

 

 

 

 

Jan 1

To Balance b/d

 

64,500

70,000

 

 

 

 

 

 

Question NUM 6

Enter the following transactions in double column cash book of M/s Ambica Traders for July 2017:

 

 

Rs.

01

Commenced business with cash

50,000

03

Opened bank account with ICICI

30,000

05

Purchased goods for cash

10,000

10

Purchased office machine for cash

5,000

15

Sales goods on credit from Rohan and received cheque

7,000

18

Cash sales

8,000

20

Rohan's Cheque deposited into bank

 

22

Paid cartage by cheque

500

25

Cash withdrawn for personal use

2,000

30

Paid rent by cheque

1,000

Solution NUM 6

M/s Ambika Traders

CASH BOOK

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

Jul

01

To Capital A/c

 

50,000

 

Jul

03

By Bank A/c

C

30,000

 

Jul

03

To Cash A/c

C

 

30,000

Jul

05

By Purchases A/c

 

10,000

 

Jul

15

To Rohan A/c

 

7,000

 

Jul

10

By Office Machine A/c

 

5,000

 

Jul

18

To Sales A/c

 

8,000

 

Jul

20

By Bank A/c

C

7,000

 

Jul

20

To Cash A/c

C

 

7,000

Jul

22

By Cartage A/c

 

 

500

 

 

 

 

 

Jul

25

By Drawings A/c

 

2,000

 

 

 

 

 

 

Jul

30

By Rent A/c

 

 

1,000

 

 

 

 

 

Jul

30

By Balance c/d

 

11,000

35,500

 

 

 

65,000

37,000

 

 

 

65,000

37,000

Aug 1

To Balance b/d

 

11,000

35,500

 

 

 

 

 

 

 

Question NUM 7

Prepare double column cash book from the following information for July 2017:

 

 

Rs.

01

Cash in hand

7,500

 

Bank overdraft

3,500

03

Paid wages

200

05

Cash sales

7,000

10

Cash deposited into bank

4,000

15

Goods purchased and paid by cheque

2,000

20

Paid rent

500

25

Drew from bank for personal use

400

30

Salary paid

1,000

Solution NUM 7

CASH BOOK

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

Jul

01

To Balance b/d

 

7,500

 

Jul

01

By Balance b/d (Overdraft)

 

 

3,500

Jul

05

To Sales A/c

 

7,000

 

Jul

03

By Wages A/c

 

200

 

Jul

10

To Cash A/c

C

 

4,000

Jul

10

By Bank A/c

C

4,000

 

 

 

 

 

 

Jul

15

By Purchases A/c

 

 

2,000

 

 

 

 

 

Jul

20

By Rent A/c

 

500

 

 

 

 

 

 

Jul

25

By Drawings A/c

 

 

400

 

 

 

 

 

Jul

30

By Salaries A/c

 

1,000

 

Jul

30

To Balance c/d (overdraft)

 

 

1,900

Jul 30

Balance c/d

 

8,800

 

 

 

 

14,500

5,900

 

 

 

14,500

5,900

Aug 1

To Balance b/d

 

8,800

 

Aug 1

By Balance b/d (Overdraft)

 

 

1,900

 

Chapter 4 - Recording of Transactions - II Exercise 155

Question NUM 8

Enter the following transactions in a double column cash book of M/s Mohit traders for January 2017:

 

 

Rs.

01

Cash in hand

3,500

 

Bank overdraft

2,300

03

Goods purchased for cash

1,200

05

Paid wages  

200

10

Cash sales

8,000

15

Deposited into bank

6,000

22

Sold goods for cheque which was deposited into bank same day

2,000

25

Paid rent by cheque

1,200

28

Drew from bank for personal use

1,000

31

Bought goods by cheque

1,000

Solution NUM 8

 CASH BOOK 

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particular

L.F.

Cash

Bank

Date

Particular

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

Jan

01

To Balance b/d

 

3,500

 

Jan

01

By Balance b/d

 

 

2,300

Jan

10

To Sales A/c

 

8,000

 

Jan

03

By Purchases A/c

 

1,200

 

Jan

15

To Cash A/c

C

 

6,000

Jan

05

By Wages A/c

 

200

 

Jan

22

To Sales A/c

 

 

2,000

Jan

15

By Bank A/c

C

6,000

 

 

 

 

 

 

Jan

25

By Rent A/c

 

 

1,200

 

 

 

 

 

Jan

28

By Drawings A/c

 

 

1,000

 

 

 

 

 

Jan

31

By Purchases A/c

 

 

1,000

 

 

 

 

 

Jan

31

By Balance c/d

 

4,100

2,500

 

 

 

11,500

8,000

 

 

 

11,500

8,000

Feb 1

To Balance b/d

 

4,100

2,500

 

 

 

 

 

 

Question NUM 9

Prepare double column cash book from the following transactions for the year August 2017:

 

 

Rs.

01

Cash in hand

17,500

Cash at bank

5,000

03

Purchased goods for cash

3,000

05

Received cheque from Jasmeet

10,000

08

Sold goods for cash

7,000

10

Jasmeet's cheque deposited into bank

 

12

Purchased goods and paid by cheque

20,000

15

Paid establishment expenses through bank

1,000

18

Cash Sales

7,000

20

Deposited into bank

10,000

24

Paid trade expenses

500

27

Received commission by cheque

6,000

29

Paid rent

2,000

30

Withdrew cash for personal use

1,200

31

Salary paid

6,000

Solution NUM 9

CASH BOOK

Dr.

 

 

 

 

 

 

 

 

 Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

Aug

01

To Balance c/d

 

17,500

5,000

Aug

03

By Purchases A/c

 

3,000

 

Aug

08

To Sales A/c

 

7,000

 

Aug

12

By Purchases A/c

 

 

20,000 

Aug

10

To Cheque in hand A/c (Jasmeet)

 

 

10,000

Aug

15

By Establishment Expenses A/c

 

 

1,000

Aug

18

To Sales A/c

 

7,000

 

Aug

20

By Bank A/c

C

10,000

 

Aug

20

To Cash A/c

C

 

10,000

Aug

24

By Trade Expenses A/c

 

500

 

Aug

27

To Commission A/c

 

 

6,000

Aug

29

By Rent A/c

 

2,000

 

 

 

 

 

 

Aug

30

By Drawings A/c

 

1,200

 

 

 

 

 

 

Aug

31

By Salaries A/c

 

6,000

 

 

 

 

 

 

Aug

31

By Balance c/d

 

8,800

10,000

 

 

 

31,500

31,000

 

 

 

31,500

31,000

2017

 

 

 

 

2017

 

 

 

 

Sept 1

To Balance b/d

 

8,800

10,000

 

 

 

 

 

 

Note:

Cheque received from Jasmeet on 5th August, 2017 will be recorded in Journal Proper:

 

 

Rs. 

Rs. 

Cheque in Hand A/c

Dr.

10,000

 

To Jasmeet A/c

 

 

10,000

(Being cheque received from Jasmeet not yet deposited)

 

 

 

 

When the above cheque is deposited into bank (i.e., 10th August, 2017) it will be recorded in debit column of Bank.

Question NUM 10

M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand Rs.1,354 and balance in bank current account Rs.7,560. He had the following transaction in the month of July, 2017:

 

 

Rs.

03

Cash sales

2,300

05

Purchased goods, paid by cheque

6,000

08

Cash sales

10,000

12

Paid trade expenses

700

15

Sales goods, received cheque (deposited same day)

20,000

18

Purchased motor car paid by cheque

15,000

20

Cheque received from Manisha (deposited same day)

10,000

22

Cash sales

7,000

25

Manisha's cheque returned dishonoured

 

28

Paid rent

2,000

29

Paid telephone expenses by cheque

500

31

Cash withdrawn for personal use

2,000

Prepare bank column cash book.

Solution NUM 10

M/s Ruchi Traders

CASH BOOK

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

 Rs.

Bank

Rs.

Date

Particular

L.F.

Cash

Rs.

Bank

Rs.

2017

 

 

 

 

2017

 

 

 

 

Jul

01

To Balance b/d

 

1,354

7,560

Jul

05

By Purchases A/c

 

 

6,000

Jul

03

To Sales A/c

 

2,300

 

Jul

12

By Trade expenses A/c

 

700

 

Jul

08

To Sales A/c

 

10,000

 

Jul

18

By Motor car A/c

 

 

15,000

Jul

15

To Sales A/c

 

 

20,000

Jul

25

By Manisha A/c (Dishonoured)

 

 

10,000

Jul

20

To Manisha A/c

 

 

10,000

Jul

28

By Rent A/c

 

2,000

 

Jul

22

To Sales A/c

 

7,000

 

Jul

29

By Telephone Expenses A/c

 

 

500

 

 

 

 

 

Jul

31

By Drawings A/c

 

2,000

 

 

 

 

 

 

Jul

31

By Balance c/d

 

15,954

6,060

 

 

 

20,654

37,560

 

 

 

20,654

37,560

2017

 

 

 

 

2017

 

 

 

 

Aug 1

To Balance b/d

 

15,954

6,060

 

 

 

 

 

 

 

Chapter 4 - Recording of Transactions - II Exercise 156

Question NUM 11

Prepare petty cash book from following transaction. The imprest amount is Rs.2,000:

2017

 

Rs.

January

 

 

01

Paid cartage

50

02

STD charges

40

02

Bus fare

20

03

Postage

30

04

Refreshment of employees

80

06

Courier charges

30

08

Refreshment of customer

50

10

Cartage

35

15

Taxi fare to manager

70

18

Stationery

65

20

Bus fare

10

22

Fax charges

30

25

Telegram charges

35

27

Postage stamps

200

29

Repair on furniture

105

30

Laundry expenses

115

31

Miscellaneous expenses

100

Solution NUM 11

 

Petty Cash Book

Amount Received Rs. 

Date

Particulars

Voucher No.

Amount Paid

Rs.

Analysis of Payments

Telephone and Telegram

Postage

Conveyance

Refreshment

Cartage

Miscellaneous

2,000

Jan 01

To Cash A/c

 

 

 

 

 

 

 

 

 

Jan 01

By Cartage A/c

 

50

 

 

 

 

50

 

 

Jan 02

By STD charges A/c

 

40

40

 

 

 

 

 

 

Jan 02

By Bus fare A/c

 

20

 

 

20

 

 

 

 

Jan 03

By Postage A/c

 

30

 

30

 

 

 

 

 

Jan 04

By Refreshment for employees A/c

 

80

 

 

 

80

 

 

 

Jan 06

By Courier charges A/c

 

30

 

30

 

 

 

 

 

Jan 08

By Refreshment of customer A/c

 

50

 

 

 

50

 

 

 

Jan 10

By Cartage A/c

 

35

 

 

 

 

35

 

 

Jan 15

By Taxi fare to manager A/c

 

70

 

 

70

 

 

 

 

Jan 18

By Stationery A/c

 

65