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Balancing of Cash Book

All cash transactions relating to cash receipts (debits) are entered on the left side and all transactions relating to cash payments (credits) are entered on the right side. When a cash book is maintained, a separate cash book in the ledger is not opened. The cash book is balanced in the same way as an account in the ledger. But it may be noted that in the case of the cash book, there will always be debit balance because cash payments can never exceed cash receipts and cash in hand at the beginning of the period.

 

The source document for cash receipts is generally the duplicate copy of the receipt issued by the cashier. Any document, invoice, bill, receipt, etc. on the basis of which payment has been made, will serve as a source document for recording transactions in the cash book. When payment has been made, these vouchers, are given provided with a serial number and filed in a separate file for future reference and verification.

 

Problem#4
From the following transactions made by M/s Kuntia Traders, prepare the single column cashbook.

 

Date

                            Details

Amount Rs.

2005

Sept. 01

Sept. 02

Sept. 04

Sept. 05

Sept. 06

Sept. 06

Sept. 07

Sept. 07

Sept. 07

Sept. 10

Sept. 11

Sept. 12

Sept. 14

Sept. 17

Sept. 21

Sept. 24

Sept. 26

Sept. 28

Sept. 29

Sept. 29

Sept. 30

 

Cash in hand
 

Deposited in bank
 

Received from Puneet in full settlement of claim of
Rs. 12,000.

Cash paid to Rukmani in full settlement of claim of
Rs.7,000

Sold goods to Sudhir for cash
 

Paid quarterly insurance premium on policy for
proprietor's wife

Purchased office furniture
 

Purchased stationery
 

Paid cartage
 

Paid Kamal, discount allowed by him Rs. 6,800
 

Received from Gurmeet, discount allowed to him
Rs.14,500

Amount withdrawn for house hold use
 

Electricity bill paid
 

Goods sold for cash
 

Bought goods from Kamal on cash basis


Paid telephone charges
 

Paid postal charges
 

Paid monthly rent
 

Paid monthly wages and salary
 

Bought goods for cash
 

Sold goods for cash

 

40,000


16,000


11,700


6,850


14,800


2,740


8,000


1,700


120


200


500


5,000


1,160


23,000


17,000


2,300


520


4,200


8,250


11,000


15,600

 




 


Solution

Books of Kuntia Traders
Cash Book

Dr. Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005 Sept. 01

Sept. 04

Sept. 06

Sept. 11

Sept. 17

Sept. 30

 

 

 

 

 

 

 

 

 

 

 








 

Oct 01


Balance b/d

Puneet
 

Sales
 

Gurmeet
 

Sales
 

Sales

 

 

 

 

 

 

 

 

 

 

 









 

Balance b/d

 

 

40,000


11,700


14,800


14,500


23,000


15,600

 

 

 

 

 

 

 











 

 

 

________

1,19,600

________

27,960

2005
Sept. 02

Sept. 05

Sept. 06

Sept. 07

Sept. 07

Sept. 07

Sept. 10

Sept. 12

Sept. 14

Sept. 21

Sept. 24

Sept. 28

Sept. 29

Sept. 29

Sept. 30

Sept. 30

 

Bank
 

Rukmani
 

Drawings
 

Office Furniture
 

Stationery
 

Cartage
 

Kamal
 

Drawings
 

Electric Charges
 

Purchases
 

Telephone
charges

Postal charges
 

Rent
 

Wages & Salary

Purchases

 

Balance c/d 27,960

 


16,000


6,850


2,740


8,000


1,700


120


6,800


5,000


1,160


17,00


2,300


520


4,200


8,250


11,000


27,960

_______

1,19,600

_______





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