Record the following transactions in a bank column cash book for December 2016: 01 Started business with cash 80,000 04 Deposited in bank 50,000 10 Received cash from Rahul 1,000 15 Bought goods for cash 8,000 22 Bought goods by cheque 10,000 25 Paid to Shyam by cash 20,000 30 Drew from Bank for office use 2,000 31 Rent paid by cheque 1,000
Books of [Firm Name] Bank Column Cash Book
Dr. (Receipts Side)
| Date | Particulars | L.F. | Cash (₹) | Bank (₹) |
|---|---|---|---|---|
| 2016 | ||||
| Dec 01 | To Capital A/c | 80,000 | ||
| Dec 04 | To Cash A/c (C) | 50,000 | ||
| Dec 10 | To Rahul | 1,000 | ||
| Dec 30 | To Bank A/c (C) | 2,000 | ||
| 83,000 | 50,000 |
Cr. (Payments Side)
| Date | Particulars | L.F. | Cash (₹) | Bank (₹) |
|---|---|---|---|---|
| 2016 | ||||
| Dec 04 | By Bank A/c (C) | 50,000 | ||
| Dec 15 | By Purchases A/c | 8,000 | ||
| Dec 22 | By Purchases A/c | 10,000 | ||
| Dec 25 | By Shyam | 20,000 | ||
| Dec 30 | By Cash A/c (C) | 2,000 | ||
| Dec 31 | By Rent A/c | 1,000 | ||
| Dec 31 | By Balance c/d | 5,000 | 37,000 | |
| 83,000 | 50,000 |
(Note: (C) denotes Contra Entry)
Explanation
This numerical question requires recording transactions in a Double Column Cash Book with Cash and Bank columns. The solution involves identifying the nature of each transaction (cash receipt, cash payment, bank deposit, cheque payment). Contra entries (C) are used for transactions affecting both Cash and Bank columns, specifically the deposit on Dec 04 and the withdrawal on Dec 30. The final balances calculated match the answer key provided in the text: Cash in hand ₹ 5,000 and Cash at bank ₹ 37,000.
Solution Steps
Step 1: Setup the Cash Book structure with Debit (Receipts) and Credit (Payments) sides, having columns for Date, Particulars, L.F., Cash, and Bank.
Step 2: Record Dec 01 transaction. Started business with cash ₹ 80,000 is a cash receipt. Enter on Debit side in Cash column.
Step 3: Record Dec 04 transaction. Deposited in bank ₹ 50,000 is a Contra Entry. Enter 'To Cash A/c' on Debit side (Bank col) and 'By Bank A/c' on Credit side (Cash col). Mark with 'C'.
Step 4: Record Dec 10 transaction. Received cash from Rahul ₹ 1,000 is a cash receipt. Enter on Debit side in Cash column.
Step 5: Record Dec 15 & 25 transactions. Bought goods for cash ₹ 8,000 and Paid to Shyam ₹ 20,000 are cash payments. Enter on Credit side in Cash column.
Step 6: Record Dec 22 & 31 transactions. Bought goods by cheque ₹ 10,000 and Rent paid by cheque ₹ 1,000 are bank payments. Enter on Credit side in Bank column.
Step 7: Record Dec 30 transaction. Drew from Bank for office use ₹ 2,000 is a Contra Entry. Enter 'To Bank A/c' on Debit side (Cash col) and 'By Cash A/c' on Credit side (Bank col). Mark with 'C'.
Step 8: Balance the accounts. Total Cash column (83,000) and Bank column (50,000). Calculate closing balances: Cash = 83,000 - 78,000 = 5,000. Bank = 50,000 - 13,000 = 37,000.