Question No 6 Chapter No 10 - T.S. Grewal 11 Class

Question No 6 Chapter No 10

Two-Column Cash Book
Without Goods and Services Tax (GST)
Record the following transactions in Double Columns Cash Book and Balance the book on 31st March 2018

2018		Rs.
Mar.1	Cash in Hand	12,750
	Cash at Bank	72,400
Mar.4	Received from Asha cash Rs 1,200 and a cheque for Rs 3,200, allowed discount Rs 400
Mar.7	Paid salary to staff by cheque	25,600
Mar.9	Withdrawn cash from the bank for office use	21,900
Mar.12	Interest paid by the bank on bank balance	1,200
Mar.16	Purchased furniture in cash	16,500
Mar.21	Paid Mohan & Co. by Cheque, discount received Rs 100	10,900
Mar.24	Proprietor withdrew from office cash for his personal use	11,600
Mar.29	Sold goods to Manoj for cash	14,800
Mar.31	Deposited office cash into the bank	21,200

The solution of Question No 6 Chapter No 10:-

In the Books of _______________

Dr.	Cash Book								Cr.
Date	Particulars	L.F.	Cash	Bank	Date	Particulars	L.F.	Cash	Bank
Mar. 2018					Mar. 2018
1	To Bal. B/d		12,750	72,400	7	By Salary A/c			25,600
4	To Asha A/c		1,200	3,200	9	By Cash A/c*			21,900
9	To Bank A/c*		21,900		16	By Furniture A/c		16,500
12	To Interest. A/c			1,200	21	By Mohan & Co. A/c			10,900
29	To Sales A/c		14,800		24	By Drawing A/c		11,600
31	To Cash A/c*			21,200	31	By Bank A/c*		21,200
					31	By Balance C/d		1,350	39,600

			50,650	98,000				50,650	98,000

All transactions which are highlighted with (*) are explained as following as follows: –

*Mar.9 Withdrawn cash from the bank for office use 21,900

To understand the posting of this transaction, first, we have to understand the journal entry of this transaction. Which is shown as follows:

Cash A/c Dr. 21,900

To Bank A/c 21,900

(Being cash withdrawal from the bank for office use)

So, According to the above journal entry, Both accounts cash & bank for which we have preparing cash book are involved in this transaction,
So, we have to show the treatment of both accounts in the cash book by posting one entry in the cash column and another in the bank column of the cash book.

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Here cash a/c is debited by the bank a/c, so we will show the bank a/c in the debit side of cash book and the amount will be shown in the cash column because cash is increasing.

And we will show the Cash a/c in the Credit side of cash book and the amount will be shown in the Bank column because Bank balance is Decreasing.

*Mar.31 Deposited office cash into bank 21,200

To understand the posting of this transaction, first, we have to understand the journal entry of this transaction. Which is shown as follows:

Bank A/c Dr. 21,200

To Cash A/c 21,200

(Being cash deposited into bank a/c)

Here Bank a/c is debited by the Cash a/c, so we will show the Cash a/c in the debit side of cash book and the amount will be shown in the Bank column because Bank balance is increasing.

And we will show the bank a/c in the Credit side of cash book and the amount will be shown in the Cash column because Cash a/c is Decreasing.

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To understand more about cash book please check out following links: –