Ch. 5 Cash Book P a g e | 5.

Cash Book

Practical Questions

Q 1: Compile Simple Cash Book from the following transactions:

2013, March Rs.
“1 Mr. Ganesh Lal commenced business with cash 6,500
“3 Bought goods for cash 685
“4 Paid to Mr. Mohanlal cash 95
“6 Deposited in Bank 4,000
“6 Paid for office furniture in cash 465
“9 Sold goods for cash 3,000
“ 12 Paid wages in cash 120
“ 13 Sold goods on credit to Zahid 40
“ 15 Sold goods for cash 2,500
“ 17 Paid for miscellaneous expenses 45
“ 19 Received cash from Mr. Trilok Chand 485
“ 22 Purchase a typewriter 250
“ 22 Purchase a radio set for personal purpose 300
“ 23 Paid salary 400
“ 28 Paid electricity bill 35
“ 31 Paid into Bank 2,500

Q 2: Enter the following transaction of Prakash in Double Column cash book.

July, 2006 Rs.
1. Balance of cash in hand 1,600
2. Paid to Mohan (discount allowed Rs. 20) 780
3. Cash sales 400
4. Sale of old newspapers 20
4. Paid for Duplicator 1.000
4. Withdrawn from Bank 400
5. Received from Anand (In full settlement of his debt Rs. 600) 570
6. Sale of old furniture 300
Ch. 5 Cash Book P a g e | 5.2

7. Received from Ram (discount Rs. 15) 400

7. Paid Wages 500
7. Received from Baja against Debt previously written off 150

Q 3: Record the following transactions in Three-column Cash Book and balance the book on 31st
January, 2013:
2013, Jan Rs.
“1 Cash in Hand 5,670
“1 Cash at Bank 1,26,750
“2 Deposited in bank 5,000
Received from A 7,900
“5
Allowed discount to A 100
“7 Purchased furniture for cash 2,500
Paid to B by cheque 7,450
“8
Received discount from B 50
“ 13 Received from C by cheque and deposited into bank 5,000
“ 15 Cash sales 7,850
“ 15 Deposited into bank 10,000
“ 17 Purchased a motor car and paid by cheque 52,400
Paid by cheque to D 3,670
“ 17
Received discount from D 30
“ 19 Withdrew from bank for office use 2,500
“ 22 Purchased goods for cash 3,500
“ 25 Paid establishment expenses through bank 4,500
“ 31 Paid rent in cash 500

Q 4: Enter the following transactions in the Cash Book of Sudhir and Sons:
2013, April Rs.
“1 Opening Cash balance 2,250
Bank overdraft 4,000
“2 Cash sales Rs. 5,000 out of which Rs. 1,500 deposited in Bank
“3 Paid to Suresh by cheque 1,400
“4 Received cheque from Jaswant and sent it to Bank on same day 8,000
“5 Paid wages 2,450
“6 Cash purchases 1,100
Ch. 5 Cash Book P a g e | 5.3

“7 Paid office expenses by cheque 2,800

“8 Cash sales 2,000
“ 10 Received cheque from Dinesh in full settlement of his account of 3,600
Rs. 3,700 and deposited it in Bank
“ 11 Paid to Ram by cheque 1,650
He allowed us discount 50
“ 12 Received cash from K. Prasad 2,650
Allowed him discount 50
“ 13 Bought furniture from Mohan and paid him by cheque 3,000
“ 14 Drew from Bank 900
“ 16 Paid salary 1,550
“17 Received cheque from Shubash 2,550
“19 Deposited the above cheque into the bank
“20 Cheque received from Hari (allowed him cash discount Rs. 150) 1,350
“22 Hari’s cheque was endorsed in favour of Mukesh
“ 23 Subhash cheque was returned dishonored
“ 24 Paid octroi by cheque 100
“ 25 Cash deposited in Bank 1,000
“ 29 Withdrew by cheque for domestic expenses 400

Q 5: A petty cashier received Rs. 100 as the petty cash on Monday, the 2nd December, 2019.
During the week his expenses
December RS
2. Rickshaw fare to salesman 5.20
Wages to casual workers 10.00
3. Stationary 8.00
Rickshaw fare 0.80
4. Postage stamps purchased 15.00
Telegram 2.50
5. Repairs to furniture 6.00
Rickshaw fare to salesman 3.00
Telegram to supplies 3.50
6. Electric Bulbs 18.00
Stationary 4.00
7. Refreshment to customers 6.00
Ch. 5 Cash Book P a g e | 5.4

Cartage for goods purchased 4.00

Q 6: Given below is a double column cash book along with transactions. You are required to
complete the missing figures/transactions:
Debit Credit
Date Date
Particulars L/F Cash Bank Particulars L/F Cash Bank
2019 2019
To balance By balance
July 1 60,000 July 1 10,000
b/d b/d
July
July 5 To sales By salary
10
July
July 8 To Mohan 15,000 By wages
10
July July
C C
30 30
July BY balance
30 c/d
Total Total

July1,
(_________________________________________________________________________________________________
__________________________________________
July 5, Sold goods for cash Rs 80,000, ½ the amount was deposited into bank.
July 8,
(_________________________________________________________________________________________________
_________________________________________________)
July 10, Paid salary Rs. 2,000 for cash and wages Rs. 9,000 by cheque.
July 30, Cash deposited into bank Rs. 15,000.

True / False
State with reasons whether following statements are true or false.
Transaction True/ False
(i) The balance in the petty cash Book represents income
(ii) Balance in the cash Book shows net income
(iii) Discount column should be balance in the cash Book
Ch. 5 Cash Book P a g e | 5.5

(iv) Cash Account may show credit balance

(v) When we buy furniture on cash, we debit cash account
(vi) Sale of office furniture should be credited to sales account.

Practice Questions

PQ 1: Enter the following transactions of Akber in single column cash book.

Jan, 2020 Rs.
1. Commenced business with 15,000
2. Paid in to Bank 13,000
3. Purchased goods for cash 1,500
4. Sold goods for cash 1,100
5. Paid for Stationery 60
6. Received from Nariman 1,500
7. Paid to Gupta 800
8. Purchases office Furniture 600

PQ 2: [RTP N18] (a) Prepare a Triple Column Cash Book for the month of April 2018 from the
following transactions and bring down the balance for the start of next month:
Date Rs.
1 Cash in hand 4,500
1 Cash at bank 18,000
2 Paid into bank 1,500
5 Bought furniture and issued cheque 2,250
8 Purchased goods for cash 750
Received cash from Mr. K 1,470
12
Discount allowed to him 30
14 Cash sales 7,500
Paid to Mr. P by cheque 2,175
16
Discount received 75
19 Paid into Bank 750
23 Withdrawn from Bank for Private expenses 900
Received cheque from Mr. B 2,145
24
Allowed him discount 30
26 Deposited Mr. B’s cheque into Bank 28
Ch. 5 Cash Book P a g e | 5.6

Withdrew cash from Bank for Office use 3,000

30 Paid rent by cheque 1,200

PQ 3: [MTP M18; 10 marks] Prepare a Petty Cash Book on the Imprest System from the following:
2017 April Rs.
“1 Received Rs. 20,000 for petty cash
“2 Paid auto fare 500
“3 Paid cartage 2,500
“4 Paid for Postage & Telegrams 500
“5 Paid wages 600
“5 Paid for stationery 400
“6 Paid for the repairs to machinery 1,500
“6 Bus fare 100
“7 Cartage 400
“7 Postage and Telegrams 700
“8 Cartage 3,000
“9 Stationery 2,000
“10 Sundry expenses 5,000

Solutions of Practice Questions

Answer PQ 1:
Simple Cash Book
Dr. Cr.
Date Particulars Cash Date Particulars Cash
2020 Rs. 2020 Rs.
Jan 1 To, Capital A/c 15,000 Jan 2 By Bank A/c 13,000
Jan 4 To, Sales A/c 1,100 Jan 3 By, Purchase A/c 1,500
Jan 6 To, Nariman 1,500 Jan 5 By, Stationary 60
Jan 7 By, Gupta A/c 800
Jan 8 By, Furniture 600
Jan 8 By, Balance c/d 1,640
Total 17,600 Total 17,600
Jan 9 To Balance b/d 17,600
Ch. 5 Cash Book P a g e | 5.7

Answer PQ 2:
Triple Column Cash Book
Dr. Cr.
Date Particulars Dis. Cash Bank Date Particulars Dis. Cash Bank
2017 Rs. Rs. Rs. 2017 Rs. Rs. Rs.
April To Balance April
4,500 18,000 By Bank (c) 1,500
1 b/d 2
April
April 2 To Cash (c) 1,500 By Furniture A/c 2,250
5
April
April 12 To Mr. K 30 1,470 By Purchase A/c 750
8
April 14 To Sales A/c 7,500 April 16 By Mr. P 75 2,175
April 19 To Cash (c) 750 April 19 By Bank (c) 750
To Mr. B
April 24 30 2,145 April 23 By Drawings A/c 900
(Note 2)
April 26 To Cash (c) 2,145 April 26 By Bank (c) 2,145
April 28 To Bank (c) 3,000 April 28 By Cash (c) 3,000
April 30 By Rent A/c 1,200
By Balance
April 30 13,470 12,870
c/d
60 18,615 22,395 75 18,615 22,395
To Balance
May 1 13,470 12,870
b/d
Note:
(1) Discount allowed and discount received Rs. 60 and Rs. 75 respectively should be posted in
respective Accounts in the ledger.
(2) When cheque is not promptly deposited into Bank, first it is entered in the Cash Column and
subsequently at the time of deposit, Bank Account is debited and Cash Account is credited.

Answer PQ 3:
PETTY CASH BOOK
Receipts Date V. Convey Statio Postage & Sund
Particulars Total Cartage Wages
Rs. 2017 No. ance nery Telegrams ries
Ch. 5 Cash Book P a g e | 5.8

20,000 April1 To Cash

2 1 By Conveyance 500 500
3 2 By Cartage 2,500 2,500
By Postage and
4 3 500 500
Telegrams
5 4 By Wages 600 600
5 5 By Stationery 400 400
By Repairs to
6 6 1,500 1,500
machine
6 7 By Conveyance 100 100
7 8 By Cartage 400 400
By Postage and
7 9 700 700
Telegrams
8 10 By Cartage 3,000 3,000
9 11 By Stationery 2,000 2,000
By Sundry
10 12 5,000 5,000
Expenses
17,200 600 5,900 2,400 1,200 600 6,500
By Balance c/d 2,800
20,000 20,000
2800 To Balance b/d
17,200 11 To Cash