Study Material

Cash Book

Accountancy

Inter First Year

English

Very Short Answer Questions

Q1. Cash discount

Q2. Discount allowed

Q3. Discount received

Q4. Contra Entry

Q5. Imprest system

Short Answer Questions

Q1. Explain the advantages of Cash book

Q2. State the characteristics of cash book

Q3. Distinguish between trade discount and cash discount

Q4. Draw the format of Petty cash book

Long Answer Questions

Q1. Explain the importance of Cash book

Q2. Explain the different types of cash book

Q3. Draw the format of Triple column cash book and explain the various important points to be noted in preparation of triple column cash book?

Problems

Q1.

Prepare Single column cash book of M/s MANASVI Traders from the following particulars (2019, Jan):

Date (Jan) Transaction Details Amount (₹)

$1^{\text{st}}$ Business commenced with 20,000

$3^{\text{rd}}$ Sales 5,000

$6^{\text{th}}$ Cash paid in to bank 2,000

$10^{\text{th}}$ Purchased machinery 1,800

$14^{\text{th}}$ Advertisement expenses paid 600

$17^{\text{th}}$ Drawings 300

$19^{\text{th}}$ Cash purchases 5,000

$21^{\text{st}}$ Sold goods to Naresh on credit 3,000

$23^{\text{rd}}$ Commission received 800

$25^{\text{th}}$ Paid to Shyam 3,500

$28^{\text{th}}$ Received rent 1,200

Q2.

Enter the following transactions in Single column cash book of Praveen traders (2019, Apr):

Date (Apr) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash balance 12,000

$2^{\text{nd}}$ Purchased goods for cash 3,000

$4^{\text{th}}$ Purchased furniture 10,000

$8^{\text{th}}$ Cash received from Ajay 5,500

$12^{\text{th}}$ Telephone bill 600

$14^{\text{th}}$ Sold goods to Nikhil 2,500

$16^{\text{th}}$ Interest paid 300

$18^{\text{th}}$ Purchased stationery 1,200

$21^{\text{st}}$ Cash sales 4,000

$25^{\text{th}}$ Postage 400

$28^{\text{th}}$ Paid to Tarun 3,000

Q3.

Prepare Simple cash book as on 31-03-2019 (2019, Mar):

Date (Mar) Transaction Details Amount (₹)

$1^{\text{st}}$ Brought cash into business 14,000

$3^{\text{rd}}$ Cash Sales 2,000

$6^{\text{th}}$ Cash paid into bank 5,000

$8^{\text{th}}$ Purchased goods from Varun for cash 1,500

$12^{\text{th}}$ Xerox charges 500

$15^{\text{th}}$ Salaries 1,400

$17^{\text{th}}$ Interest received 200

$21^{\text{st}}$ Office expenses 400

$25^{\text{th}}$ Travelling expenses 800

$27^{\text{th}}$ Sold furniture 8,500

$28^{\text{th}}$ Drawings 700

$30^{\text{th}}$ Credit purchases from Raghu 4,000

$31^{\text{st}}$ Purchases 3,000

Q4.

Record the following transactions in Two column cash book (2018, Aug):

Date (Aug) Transaction Details Cash Amount (₹) Discount (₹)

$1^{\text{st}}$ Cash balance 11,000

$2^{\text{nd}}$ Purchases 1,500

$4^{\text{th}}$ Cash received from Prabhakar 1,250 50 (Allowed)

$7^{\text{th}}$ Cash sales 2,000

$10^{\text{th}}$ Sundry expenses 800

$12^{\text{th}}$ Paid to Vamshi (Discount received) 1,400 100 (Received)

$14^{\text{th}}$ Sold old machinery 5,000

$16^{\text{th}}$ Received from Anil 425 75 (Allowed)

$21^{\text{st}}$ Commission paid 300

$23^{\text{rd}}$ Travelling expenses 250

$25^{\text{th}}$ Received interest 125

Q5.

Prepare Double column cash book as on 31-03-2018 (2018, Mar):

Date (Mar) Transaction Details Cash Amount (₹) Discount (₹)

$1^{\text{st}}$ Cash in hand 7,500

$3^{\text{rd}}$ Drawings 1,250

$6^{\text{th}}$ Cash Sales 6,000

$7^{\text{th}}$ Paid cash to Swathi (Discount Received) 1,850 150 (Received)

$9^{\text{th}}$ Sold goods to Ram on credit 3,000

$10^{\text{th}}$ Cash withdrawn from Bank (Contra) 1,400

$12^{\text{th}}$ Paid for postage 200

$14^{\text{th}}$ Received cash from Anitha (Discount allowed) 600 100 (Allowed)

$16^{\text{th}}$ Received commission 450

$18^{\text{th}}$ Cash paid to Neeraja (Discount received) 2,850 150 (Received)

$20^{\text{th}}$ Paid interest 1,200

$21^{\text{st}}$ Salaries 600

Q6.

Prepare Two column cash book from the following (2018, Apr):

Date (Apr) Transaction Details Amount (₹)

$1^{\text{st}}$ Opening balance (Cash) 9,500

$4^{\text{th}}$ Cash sales 2,000

$6^{\text{th}}$ Printing & Stationery 250

$10^{\text{th}}$ Cash received from Sunitha (Discount allowed) 8,800 (Cash) / 200 (Discount)

$13^{\text{th}}$ Cash deposited in to bank (Contra) 5,000

$14^{\text{th}}$ Paid rent to land lord 800

$19^{\text{th}}$ Bought furniture from Anjali 6,000

$23^{\text{rd}}$ Cash drawn for personal use 2,500

$26^{\text{th}}$ Cash paid to Anjali (In full settlement of her account ₹6,000) 5,900 (Cash)

$28^{\text{th}}$ Paid for repairs 200

Q7.

Prepare Two column cash book with bank and discount column from the following (2018, Nov). **Assume that all the cash receipts are deposited in the bank and all payments are made through cheques.**

Date (Nov) Transaction Details Amount (₹)

$1^{\text{st}}$ Opening balance (Bank) 6,000

$3^{\text{rd}}$ Cheque received from Mahesh (Discount allowed) 1,950 (Bank) / 50 (Discount)

$6^{\text{th}}$ Purchases 2,500

$8^{\text{th}}$ Purchased machinery and payment made by cheque 3,000

$11^{\text{th}}$ Paid to Sumanth by Cheque (In full settlement of his account ₹500) 450 (Bank) / 50 (Discount)

$13^{\text{th}}$ Sold goods to Reddy and received cheque 4,000

$15^{\text{th}}$ Paid salaries by cheque 2,000

$17^{\text{th}}$ Withdrawn from bank for personal use 1,500

$20^{\text{th}}$ Postal charges 800

$24^{\text{th}}$ Wages paid 150

Q8.

Prepare Triple column cash book (2018, Dec):

Date (Dec) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash in hand 10,000

$1^{\text{st}}$ Cash at bank 8,000

$3^{\text{rd}}$ Sales (Cash) 4,000

$6^{\text{th}}$ Cash received from Sunitha (Discount allowed) 6,800 (Cash) / 200 (Discount)

$9^{\text{th}}$ Commission received (Cash) 800

$10^{\text{th}}$ Cash deposited into bank (Contra) 2,000

$14^{\text{th}}$ Cheque issued to Murthy (Discount received) 9,600 (Bank) / 400 (Discount)

$17^{\text{th}}$ Withdrawn cash from bank for office use (Contra) 1,800

$20^{\text{th}}$ Goods purchased from Rohith (Cash) 3,500

$24^{\text{th}}$ Received cheque from Shyam (Deposited in the bank) 3,800

$31^{\text{st}}$ Salaries (Cash) 1,000

Q9.

Prepare Triple column cash book from the following particulars (2018, Oct):

Date (Oct) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash balance 14,000

$1^{\text{st}}$ Bank balance 12,000

$3^{\text{rd}}$ Purchases (Cash) 2,500

$4^{\text{th}}$ Paid into bank (Contra) 4,000

$6^{\text{th}}$ Printing charges (Cash) 600

$10^{\text{th}}$ Received from Anusha (Discount allowed) 3,900 (Cash) / 100 (Discount)

$13^{\text{th}}$ Cash sales 4,800

$16^{\text{th}}$ Cash drawn from bank for personal use (Drawings) 1,000

$19^{\text{th}}$ Cheque received from Jyothsna (Discount allowed) 5,200 (Cheque) / 300 (Discount)

$20^{\text{th}}$ Paid cash to Krishna (Discount received) 1,300 (Cash) / 200 (Discount)

$23^{\text{rd}}$ Jyothsna's cheque deposited into bank (Contra) 5,200

$31^{\text{st}}$ Salaries paid by cheque 1,800

Q10.

Prepare Three column cash book of Ravi Traders from the following particulars (2018, Sep):

Date (Sep) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash balance 15,000

$1^{\text{st}}$ Bank balance (Cr.) 25,000

$4^{\text{th}}$ Received cash from Bhasker (In full settlement of his account ₹4,000) 3,900 (Cash) / 100 (Discount)

$6^{\text{th}}$ Goods sold to Prakash for cash 2,800

$7^{\text{th}}$ Interest paid (Cash) 500

$10^{\text{th}}$ Received from Karthik traders (Cash and Cheque sent to bank) (Discount allowed) 1,800 (Cash) / 4,800 (Cheque) / 400 (Discount)

$14^{\text{th}}$ Cash deposited into bank (Contra) 4,000

$16^{\text{th}}$ Purchased goods from Chaitanya and payment made through 'paytm' (Bank) 2,500

$24^{\text{th}}$ Issued cheque to Manohar (Discount received) 2,800 (Bank) / 200 (Discount)

Q11.

Prepare cash book with Cash Bank and Discount Columns from the following (2018, Nov):

Date (Nov) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash in hand 5,900

$1^{\text{st}}$ Bank overdraft 10,800

$3^{\text{rd}}$ Paid for Stationery (Cash) 400

$5^{\text{th}}$ Deposited into bank (Contra) 4,500

$8^{\text{th}}$ Received cash from Swapna (Discount allowed) 7,900 (Cash) / 100 (Discount)

$11^{\text{th}}$ Goods sold for cash 1,000

$13^{\text{th}}$ Received cheque from Sravanthi (Deposited in to bank) (Discount allowed) 1,100 (Cheque) / 75 (Discount)

$16^{\text{th}}$ Cash with drawn from bank (Contra) 2,000

$19^{\text{th}}$ Paid rent (Cash) 250

$21^{\text{st}}$ Issued cheque to Nikhil (Discount received) 2,800 (Bank) / 200 (Discount)

$23^{\text{rd}}$ Purchased furniture (Cash) 4,000

Required: Prepare the Triple Column Cash Book.

Q12.

Prepare Triple column cash book from the following information (2018, June):

Date (June) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash in hand 12,500

$1^{\text{st}}$ Cash at bank 14,800

$3^{\text{rd}}$ Cash sales 3,000

$7^{\text{th}}$ Purchased goods from Ashok and paid by cheque 5,000

$10^{\text{th}}$ Cash paid into bank (Contra) 1,800

$12^{\text{th}}$ Cash paid to Laxmi (Discount received) 1,850 (Cash) / 240 (Discount)

$16^{\text{th}}$ Cash with drawn from bank for office use (Contra) 2,000

$19^{\text{th}}$ Sold machinery and amount received through 'paytm' (Bank) 2,400

$25^{\text{th}}$ Advertisement expenses (Cash) 150

$28^{\text{th}}$ Received cheque from Vishnu (Deposited to bank) (Discount allowed) 1,980 (Cheque) / 120 (Discount)

$30^{\text{th}}$ Salaries paid by cheque 3,280

Q13.

Prepare Three column cash book from the following particulars (2018, July):

Date (July) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash in hand 6,000

$1^{\text{st}}$ Cash at bank 10,000

$5^{\text{th}}$ Cash sales 1,900

$7^{\text{th}}$ Issued cheque to D-Mart (Discount received) 1,800 (Bank) / 200 (Discount)

$8^{\text{th}}$ Received cash from Sai Traders (Discount allowed) 1,850 (Cash) / 150 (Discount)

$14^{\text{th}}$ Cash withdrawn from bank for office use (Contra) 550

$22^{\text{nd}}$ Cash purchases 600

$29^{\text{th}}$ Paid into bank (Contra) 800

$30^{\text{th}}$ Salaries paid by cheque 2,400

$31^{\text{st}}$ Bank charges as per bank Pass Book (Bank) 50

Q14.

Prepare Triple column cash book (2019, Feb):

Date (Feb) Transaction Details Amount (₹)

$1^{\text{st}}$ Cash balance 12,000

$1^{\text{st}}$ Bank balance 8,000

$3^{\text{rd}}$ Issued cheque to Rama (Discount) 3,950 (Bank) / 50 (Discount)

$6^{\text{th}}$ Cash sales 4,500

$10^{\text{th}}$ Cash deposited into bank (Contra) 2,500

$18^{\text{th}}$ Received cash and cheque from Mohan (Cheque deposited with bank) (Discount) 2,800 (Cash) / 5,800 (Cheque) / 400 (Discount)

$20^{\text{th}}$ Purchases (Cash) 3,400

$23^{\text{rd}}$ Mohan's cheque dishonored (Bank) 5,800

$24^{\text{th}}$ Rent paid by cheque 1,000

$28^{\text{th}}$ Drew from bank for office use (Contra) 1,600