Page 63 - DEBK-XI(2020)

Special Purpose Books I—Cash Book 10.3

2. Enter the following transactions in Two-column Cash Book with Cash and Bank
Columns. Also pass the Journal entries.
2020 `
Jan. 1 Chander commences business with Cash ............................................................................................ 20,00,000
Jan. 3 He paid into Bank Current A/c ............................................................................................................... 19,00,000
Jan. 4 He receives cheque from Kirti & Co. on account ................................................................................... 60,000
Jan. 7 He deposits into Bank Kirti & Co.’s cheque .......................................................................................... 60,000
Jan. 10 He pays Ratan & Co. by cheque and is allowed discount ` 2,000 ........................................................ 33,000
Jan. 12 Tripathi & Co. pays into the Bank A/c .................................................................................................... 47,500
Jan. 15 He receives cheque from Warsi and allows him discount ` 3,500 ........................................................ 45,000
Jan. 20 He receives cash ` 7,500 and cheque ` 10,000 for sales
Jan. 25 He pays into Bank, including cheques received on 15th and 20th January .......................................... 1,00,000
Jan. 27 He pays by cheque for cash purchases ................................................................................................ 27,500
Jan. 30 He pays sundry expenses in cash ......................................................................................................... 5,000
Jan. 30 He pays John & Co. in cash and is allowed discount ` 3,500 ............................................................... 37,500
Jan. 31 He pays office rent by cheque ............................................................................................................... 20,000
Jan. 31 He draws a cheque for personal use ..................................................................................................... 25,000
Jan. 31 He pays staff salaries by cheque .......................................................................................................... 30,000
Jan. 31 He draws a cheque for office use .......................................................................................................... 40,000
Jan. 31 He purchases stationery in cash ........................................................................................................... 2,500
Jan. 31 He purchases goods for cash ................................................................................................................ 12,500
Jan. 31 He pays Jagpal by cheque for commission ........................................................................................... 30,000
Jan. 31 He issues cheque to Ram Saran for purchase of furniture for office ..................................................... 1,57,500
Jan. 31 He receives cheque for commission from Raghubir & Co. and pays the same into bank ..................... 50,000
Jan. 31 Cash Sales ............................................................................................................................................ 45,000
Solution:
In the Books of Chander
Dr. TWO-COLUMN CASH BOOK Cr.

Date Particulars L.F. Cash (`) Bank (`) Date Particulars L.F. Cash (`) Bank (`)
2020 2020
Jan. 1 To Capital A/c 20,00,000 ... Jan. 3 By Bank A/c C 19,00,000 ...
Jan. 3 To Cash A/c C ... 19,00,000 Jan. 10 By Ratan & Co. ... 33,000
Jan. 7 To Cheques in Jan. 25 By Bank A/c C 45,000 ...
Hand A/c ... 60,000 Jan. 27 By Purchases A/c ... 27,500
(Kirti & Co.) Jan. 30 By Sundry Exp. A/c 5,000 ...
Jan. 12 To Tripathi & Co. ... 47,500 Jan. 30 By John & Co. 37,500 ...
Jan. 20 To Sales A/c 7,500 ... Jan. 31 By Rent A/c ... 20,000
Jan. 25 To Cash A/c C ... 45,000 Jan. 31 By Drawings A/c ... 25,000
Jan. 25 To Cheques in Jan. 31 By Salaries A/c ... 30,000
Hand A/c ... 55,000 Jan. 31 By Cash A/c C ... 40,000
Jan. 31 To Bank A/c C 40,000 ... Jan. 31 By Stationery A/c 2,500 ...
Jan. 31 To Commission Jan. 31 By Purchases A/c 12,500 ...
Received A/c ... 50,000 Jan. 31 By Commission A/c ... 30,000
Jan. 31 To Sales A/c 45,000 ... Jan. 31 By Furniture A/c ... 1,57,500
Jan. 31 By Balance c/d 90,000 17,94,500
20,92,500 21,57,500 20,92,500 21,57,500

Feb. 1 To Balance b/d 90,000 17,94,500