Question No 16 Chapter No 7

Question No 16 Chapter No 7

16. Prepare a three column Cash Book from the following particulars :-

2018 Rs
Feb.1Cash in Hand 14,800; Bank Overdraft 32,700 
Feb.4Sold goods, received cheque deposited same day4,950
Feb.5Sold goods to Navin on Credit5,000
Feb.8Received from Navin a cheque for 9,500 in settlement of his account.  
Feb.10Sold goods to Murlidhar on Credit6,000
Feb.12Cheque received from Navin endorsed to Praveen in full settlement of his account9,800
Feb.15Received cheque from Ram12,800
 Allowed him discount200
Feb.16Paid into Bank including Ram′s cheque15,000
Feb.18Cheque from Ram returned dishonoured and bank debits our account in respect of charges on this cheque 20. Discount not withdrawn 
Feb.19Received the amount of returned cheque and bank charges in cash from Ram. 
Feb.20Instructed the bank to issue a bank draft for 5,000 in favor of Shyam. Bank charged 40 for issuing the draft.  
Feb.22Murlidhar settled his account by means of a cheque for 6,200; including 200 as the interest charged from him. Lodged the cheque into bank.  
Feb.24Paid 5,000 by cheque for cash purchases 
Feb.25Sudhir who owed us 8,000 became bankrupt and paid us 50 paise per rupee. 
Feb.28Paid salary to Manohar Lal3,000

The solution of Question No 16 Chapter No 7: –

Dr.Cash BookCr.
Discount ReceivedCashBank
2020     2020     
Feb.1To Balance c/d 14,800Feb.1By Balance b/d 32,700
Feb.4To Sale A/c 4,950Feb.16By Bank A/c 2,200
Feb.16To Cheques in-Hand A/c 20012,800Feb.18By Ram A/c 12,820
Feb.16To Cash A/c 2,200Feb.20By Shyam A/c 5,000
Feb.19To Ram A/c 12,820Feb.20By Bank Charges A/c  40
Feb.22To Murlidhar A/c 6,200Feb.24By Purchases A/c 5,000
Feb.25To Sudhir A/c  4,000 Feb.28By Salary A/c 3,000
Feb.28To Cash A/c   20,000Feb.28By Bank A/c 20,000
Feb.28To Balance c/d 200 9,410Feb.28By Balance C/d 
   20031,62055,560   31,62055,560


Feb. 08Cheques-in-Hand A/cDr. 9,500 
 Discount Allowed A/cDr. 500 
 To Navin   10,000
 (Being Cheque received from Navin)    
Feb. 22Gopal A/cDr. 9,800 
 To Cheques-in-Hand A/c   9,500
 To Discount Received A/c   300
 (Being Cheque endorsed to Praveen)    
Feb. 15Cheques-in-Hand A/cDr. 12,800 
 Discount Allowed A/cDr. 200 
 To Sales A/c   13,000
 (Being Cheque received from Ram)    

Note: Transaction dated February 08, 2017, February 10, 2017 and February 12, 2017, will not be recorded in Cash Book because these transactions will not affect the cash/bank balance 

Cash Book | Types of Cash Book | Subsidiary Books

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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