Question 28 of 45intermediate🔧 ApplyNumerical4 marks

Enter the following transactions in a simple cash book for December 2016: 01 Cash in hand 12,000 05 Cash received from Bhanu 4,000 07 Rent Paid 2,000 10 Purchased goods Murari for cash 6,000 15 Sold goods for cash 9,000 18 Purchase stationery 300 22 Cash paid to Rahul on account 2,000 28 Paid salary 1,000 30 Paid rent 500

Correct Answer

Simple Cash Book

DateParticularsL.F.Amount (₹)DateParticularsL.F.Amount (₹)
20162016
Dec 01To Balance b/d12,000Dec 07By Rent2,000
Dec 05To Bhanu4,000Dec 10By Purchases (Murari)6,000
Dec 15To Sales9,000Dec 18By Stationery300
Dec 22By Rahul2,000
Dec 28By Salary1,000
Dec 30By Rent500
Dec 31By Balance c/d13,200
25,00025,000
2017
Jan 01To Balance b/d13,200

(Note: The provided context contains an answer key stating the balance is ₹ 12,170. However, based on the transaction values provided in the question text, the calculated balance is ₹ 13,200. The solution below follows the standard accounting procedure for the provided figures.)

Exercise: Numerical Questions | Q: 1
For More Understanding

Explanation

A Simple Cash Book records all cash transactions. The left side (Dr.) records receipts, and the right side (Cr.) records payments. The opening balance is always recorded on the debit side. The closing balance is calculated by deducting total payments from total receipts.

Solution Steps

  1. Step 1: Enter the opening balance on the debit side: Dec 01 - To Balance b/d - ₹ 12,000.

  2. Step 2: Record cash receipts on the debit side: Dec 05 - To Bhanu - ₹ 4,000 and Dec 15 - To Sales - ₹ 9,000.

  3. Step 3: Record cash payments on the credit side: Dec 07 - By Rent (₹ 2,000), Dec 10 - By Purchases (₹ 6,000), Dec 18 - By Stationery (₹ 300), Dec 22 - By Rahul (₹ 2,000), Dec 28 - By Salary (₹ 1,000), Dec 30 - By Rent (₹ 500).

  4. Step 4: Total both sides and calculate the balancing figure: Total Receipts (₹ 25,000) - Total Payments (₹ 11,800) = Balance c/d ₹ 13,200.

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