Question 26 of 45intermediate🔧 ApplyNumerical4 marks

Record the following transaction in simple cash book for November 2016: 01 Cash in hand 12,500 04 Cash paid to Hari 600 07 Purchased goods 800 12 Cash received from Amit 1,960 16 Sold goods for cash 800 20 Paid to Manish 590 25 Paid cartage 100 31 Paid salary 1,000

Correct Answer

Simple Cash Book

Dr. (Receipts)

DateParticularsL.F.Amount ₹
2016
Nov 01Balance b/d12,500
Nov 12Amit1,960
Nov 16Sales800
Total15,260
Dec 01Balance b/d12,170

Cr. (Payments)

DateParticularsL.F.Amount ₹
2016
Nov 04Hari600
Nov 07Purchases800
Nov 20Manish590
Nov 25Cartage100
Nov 31Salary1,000
Nov 30Balance c/d12,170
Total15,260

Working Notes:

  1. Total Receipts (Debit Side): 12,500 (Opening) + 1,960 (Amit) + 800 (Sales) = ₹ 15,260
  2. Total Payments (Credit Side): 600 (Hari) + 800 (Purchases) + 590 (Manish) + 100 (Cartage) + 1,000 (Salary) = ₹ 3,090
  3. Closing Balance: 15,260 (Receipts) - 3,090 (Payments) = ₹ 12,170
Exercise: Numerical Questions | Q: 2
For More Understanding

Explanation

This question requires the preparation of a Simple Cash Book, which records only cash transactions. The left side (Debit) records all cash receipts, including the opening balance, cash received from debtors (Amit), and cash sales. The right side (Credit) records all cash payments, such as payments to creditors (Hari, Manish), purchases, and expenses (Cartage, Salary). The final closing balance is calculated by deducting the total payments from the total receipts, resulting in a balance of ₹ 12,170, which matches the answer key provided in the context.

Solution Steps

  1. Step 1: Enter the opening balance of ₹ 12,500 on the debit side as 'Balance b/d'.

  2. Step 2: Record cash receipts on the debit side: Received from Amit (₹ 1,960) and Sold goods (₹ 800).

  3. Step 3: Record cash payments on the credit side: Paid to Hari (₹ 600), Purchased goods (₹ 800), Paid to Manish (₹ 590), Paid cartage (₹ 100), and Paid salary (₹ 1,000).

  4. Step 4: Total both the debit (₹ 15,260) and credit (₹ 3,090 excluding balance) sides.

  5. Step 5: Calculate the difference (15,260 - 3,090 = 12,170) and enter it as 'Balance c/d' on the credit side to balance the book.

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