© Dhruv P Patel

Ans. Cash book is a type of subsidiary book in

which cash receipts and cash payments

transactions are recorded and at the end of the

given period cash balance can be known from

cash book. Cash book serves the purpose of

journal entry and cash account both.

Usefulness of cash book/utilities of cash book

Explain the meaning of cash book and clarify its

usefulness.

© Dhruv P Patel

(1) When the cash book is maintained, cash account need not be

prepared in the ledger, which ultimately saves the time and labor.

(2) Cash book is prepared separately from the journal, so work can be

assigned to some more reliable person.

(3) Transactions relating to cash, bank and discount can be recorded

and summarized with the help of cash book.

(4) If the cash balance from cash book is worked out on daily basis,

then if any error, in the actual cash balance and balance as per cash

book, can be found out immediately.

(5) Different types of cash books can be prepared as per the

requirement, convenience and volume of the business.

Std – 11

© Dhruv P Patel

Record the following transactions in the cash book of Shlok :

Opening cash balance Rs. 8,000. 1-Mar

2003

Old cycle of Rs. 600 is purchased for business. 30-Mar

Rs. 1,000 received towards commission. 28-Mar

Machine of Rs. 3,500 purchased for business. 25-Mar

Vairagi paid Rs. 1,500 for goods sold to her in the previous month. 23-Mar

Rs. 2,000 paid to Mausam for goods purchased in the pre month. 19-Mar

Salary of Rs. 1,000 and brokerage of Rs. 1,500 are paid by cash 11-Mar

Goods of Rs. 5,000 purchased from Kavita by cash. 9-Mar

Goods of Rs. 6,000 sold to Manali for cash. 7-Mar

Cash of Rs. 2,000 brought in the business, as more funds are required. 5-Mar

Cash purchases Rs. 4,000. 3-Mar

Cash sales Rs. 3,000. 2-Mar

© Dhruv P Patel

Aril 13,900Balance b/f

2003

21,50021,500

3,900Balance c/f31

17,600

21,500

600Vehicle A/c30

3.500Machine A/c251,000Commission A/c28

2,000Mausam A/c191,500Vairagi A/c23

1,500Brokerage A/c116,000Sales A/c7

1,000Salary A/c112,000Capital A/c5

5,000Purchase A/c93,000Sales A/c2

4,000Purchase A/c3-Mar8,000Balance b/f.Mar. 1

20032003

Rs.F.No.(Particulars)Rs.F.No.(Particulars)

Amt.L.V.PaymentsDate

Amt.LR.ReceiptsDate

© Dhruv P Patel

21,500

17,600

21,500

600Vehicle A/c30

3.500Machine A/c251,000Commission A/c28

2,000Mausam A/c191,500Vairagi A/c23

1,500Brokerage A/c116,000Sales A/c7

1,000Salary A/c112,000Capital A/c5

5,000Purchase A/c93,000Sales A/c2

4,000Purchase A/c3-Mar8,000Balance b/f.Mar. 1

20032003

Rs.F.No.(Particulars)Rs.F.No.(Particulars)

Amt.L.V.PaymentsDate

Amt.LR.ReceiptsDate

21,500

21,500

Std – 11

© Dhruv P Patel

Rs. 225 paid to Vepari Mahamandal towards annual fees. Ans.29

Godown rent of Rs. 600 paid by cash and carriage of Rs. 100 paid to Shambhu

by cash.

27

A machine of Rs. 6,000 is purchased, for which Rs. 2,000 is paid by cash and it

is decided that the remaining amount will be paid after one month.

23

As more funds are required in the business, household furniture of Rs. 3,000 is

sold for Rs. 3,500 and Rs. 2,500 brought in the business.

19

Goods of Rs. 5,000 sold at 10% trade discount and 5% cash discount.18

Salary of Rs. 1,000 and wages of Rs. 600 are paid by cash.17

Cash of Rs. 1,400 paid to Radha in full settlement of account of Rs. 1,420.15

Commission of Rs. 100 and brokerage of Rs. 900 are received. 13

Cash of Rs. 2,000 paid to Prabhat in full settlement of his account of Rs. 2,010.10

Goods of Rs. 4,000 purchased at 5% cash discount.5

Goods of Rs. 3,000 sold at 10% trade discount. 4

Goods of Rs. 4,000 sold at 10% cash discount. 3

Opening cash balance Rs. 5,500.1April

2003

From the following transactions, prepare cash and discount columnar

cash book of Parag.

Std – 11

© Dhruv P Patel

Cash of Rs. 1,000 deposited in the bank.30

Karishma issued a cheque of Rs. 3,000, which is immediate deposited in the bank.29

Vidhya has been paid Rs. 1,800 towards full settlement of an old account.26

Bipasha paid cash of Rs. 2,550 towards her debt.24

Goods of .Rs. 4,500 purchased for cash at 10% trade discount.21

Shop rent is paid.19

Rs. 2,000 withdrawn from the bank for payment of shop rent.17

Salary of Rs. 1,000 and commission of Rs. 500 are paid by cheque.14

Goods of Rs. 5,000 purchased and amount is paid by cheque.12

Rs. 1,500 withdrawn from the bank for personal use.10

Rs. 600 paid towards salary and Rs. 100 paid towards brokerage by cash.6

Goods of Rs. 6,000 sold to Vivek. paid Rs. 4,000 by cash and remaining

amount is paid by cheque, which is deposited in the bank.

4

Goods of Rs. 5,000 sold to Madhuri at 10% trade discount. Madhuri issued cheque

for necessary amount, which is immediately deposited in the bank.

2

Opening cash balance Rs. 3,000, opening bank balance Rs. 6,000.1May

2003

From the following transactions, prepare cash and columnar cash book of Rinku.

© Dhruv P Patel

12

Feb

Balance b/f.

200

3

1,700

4,4004,400

1,700l l

2001003002008005006002,700Balance c/f

20020011

100100Manoj A/c10

Misc. exp. A/c9

300300Chief cashier A/c

exp. A/c8

200200Tea and Refreshment7

100100Stationery exp. A/c5

800800Wages A/c

stamps exp. A/c4

5005001,000Postage and postal

Wages A/c and carriage A/c.3

Chief cashier A/c.1900

Opening balance1500

Feb3 200

3

Other

misc.

exp.

Tea &

ref.

Statione

ry

Postag

e

Carria

ge

Wage

s

Individ

ual

accoun

t in

ledger

L

.

F.

Particulars of Various expenses

Total Amt.

Paid

Vouc

her

No.

ParticularsDateReceipts

Rs..

Std – 11

© Dhruv P Patel

1 Cash balance Rs. 7,000, Bank overdraft Rs. 2,500.

2 Goods of Rs. 7,000 sold to Kinnari against which a cheque of necessary amount is received.

3 Cheque issued by Kinnari is deposited in the bank.

4 Goods of Rs. 2,000 sold to Ashok at 10% trade discount. Ashok paid 50% of the amount by cash and remaining amount is

immediately paid by cheque.

5 Rs. 2,000 deposited in the bank.

7 Machine of Rs. 5,000 is purchased and cheque of necessary amount is issued.

9 Mansi issued a cheque of Rs. 6,000 towards payment of sales made in the previous month, which is immediately deposited

in the bank.

11 Rs. 500 for wages, Rs. 500 for telephone bill and Rs. 1,200 for electricity bill are paid by cheques.

13 Rs. 2,000 withdrawn from the bank for payment of telephone bill.

14 Telephone bill of Rs. 1,600 is paid.

21 Bank debited our account by Rs. 150 for interest on overdraft and Rs. 100 for bank charges in our account, which is

informed through bank advice.

23 Goods of Rs. 3,000 is sold to Viram, for which he issued a crossed cheque of necessary amount.

24 Cheque of Rs. 3,000 received from Tejal, which is endorsed in favour of Sejal.

25 Bank informed that cheque issued by Viram is dishonoured.

26 Rs.1,500 paid by cash to Ramanuj in full settlement of account

28 Rs. 2,000 withdrawn from the bank for personal use.