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

Question No. 6 - Chapter No.10 - T.S. Grewal +1 Book 2019

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Mar.9 Withdrawn cash from the bank for office use 21,900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*Mar.9 Withdrawn cash from the bank for office use 21,900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

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)

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.

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.

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

Cash Book | Types of Cash Book | Subsidiary Books

Single Column Cash Book | Explained with Example

Double Column Cash Book | Explained with Example

Triple Column Cash Book | Explained with Example

Petty Cash Book | Example | Subsidiary Books

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Also, Check out previous Chapters: –

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 6 Chapter No 10 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping