Question No 7 Chapter No 10 – T.S. Grewal 11 Class

Question No. 7 - Chapter No.10 - T.S. Grewal +1 Book 2019

Question No 7 Chapter No 10

Record the following transactions in Double Columns Cash Book and Balance the book on 31st March 2018

2018   Rs.
Jun.1 Cash in Hand Rs 800, Bank Overdraft Rs 5,700  
Jun.7 Received a Cheque from Bharati, Discount allowed Rs 150 3,250
Jun.9 Deposited the above cheque into Bank  
Jun.15 Cheque Received from Panna Lal  1,200
Jun.20 Bharati’s cheque returned dishonoured   
Jun.28 Panna Lal’s cheque was endorsed to Kamal  
Jun.30 Income tax paid by cheque 150

The solution of Question No 7 Chapter No 10:- 

In the Books of Gupta Store

Dr. Cash Book   Cr.
Date Particulars
L.F. Cash  Bank  Date Particulars
L.F. Cash Bank
Jun. 2018         Jun. 2018        
1 To Bal. B/d    800   1 To Bal. B/d (OverDraft)*      5,700
4 To Cheque In Hand A/c*     3,250 20 By Bharati A/c     3,250
          24 By Drawing A/c     150
30 By Balance C/d     5,850 30 By Balance C/d   800  
                   
      800 9,100       800 9,100

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

*Jun.1 Cash in Hand Rs 800, Bank Overdraft Rs 5,700

Bank overdraft means the business takes a short term loan from the bank. So, it will be treated as a liability. And it will be shown on the credit side of the cash book in the bank column.

*Jun.7 Received a Cheque from Bharati, Discount allowed Rs 150

Cheque received from Bharati is not deposited in the bank till date, So the journal entry will be posted as shown below:

Cheque in hand  A/c                                 Dr.      3,250

Discount Allowed  A/c                             Dr.          150

                  To Bharati’s A/c                                                   3,400

(Being payment received by cheque from Bharati and allowed her discount)

*Jun.9 Deposited the above cheque into Bank

Bank  A/c                                 Dr.      21,200

                  To Cheque in Hand A/c                                            21,200

(Being Cheque deposited into the bank)

*Jun.15 Cheque Received from Panna Lal 1,200

Cheque received from Bharati is not deposited in the bank till date, So the journal entry will be posted as shown below:

Cheque in hand  A/c                                 Dr.      1,200

                 To Panna Lal A/c                                                   1,200

(Being payment received by cheque from Panna Lal)

*Jun.28 Panna Lal’s cheque was endorsed to Kamal

Kamal  A/c                                                       Dr.      1,200

                  To Cheque in Hand A/c                                            1,200

(Being Cheque of Panna Lal endorsed to the Kamal)

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 7 Chapter No 10 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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