Page 69 - ISCDEBK-XI

Sub-Division of Journal—Cash Book 9.7

3. Prepare Three-column Cash Book from the following transactions of Mani, Kochi:
2022
March 1 Cash in Hand ` 15,000; Cash at Bank ` 5,000
March 3 Purchased goods of ` 6,000 settled the account by cash and received discount of ` 220
March 5 Deposited into bank ` 5,000
March 7 Cash sales ` 10,000
March 10 Cash withdrawn from Bank for Office use ` 2,000
March 15 Received three months post dated cheque of ` 20,000 from Raj and deposited in the bank on the same day,
discounted from bank paying discounting charges ` 750
March 18 Received cheque from Deepak for ` 5,000 (not banked), allowed discount ` 200
March 20 Cheque received from Deepak deposited in Bank
March 22 Paid to Chandra by cheque ` 2,500; received discount ` 100
March 25 Withdrew from bank for personal use ` 1,000
March 28 Sold goods to Ashok Mitra, Kolkata ` 10,000
March 30 Purchased goods from Chander, Delhi ` 20,000
March 31 Received cheque from Ashok Mitra ` 5,000 and deposited in bank, allowed him discount ` 200
4. Yash operates two Bank Accounts both of which are maintained in three columnar Cash Book itself. You
are required to draw up the Cash Book and show how the following transactions relating to 31st January,
2022 will appear therein and close the Cash Book for the day:
(i) Opening Balance: `
Cash 2,000
State Bank of India (SBI) 8,000 (Overdraft)
Punjab National Bank (PNB) 60,000
(ii) Received cheque for ` 12,500 in respect of sales. The cheque was deposited in SBI, which credited the
net amount after deducting ` 30 as discounting charges.
(iii) Purchased goods for ` 20,000 and a cheque issued on the PNB.
(iv) Paid rent ` 1,500 and ` 200 for stationery.
(v) Out of cash sales of ` 15,000 a sum of ` 10,000 was deposited in the SBI.
(vi) Credit purchases of ` 15,000 were made from Mr. Shyam who sent the documents relating to the
goods through the PNB for 90% of their value. The bank charged ` 150 for releasing the documents.
(vii) Deposited ` 5,000 in SBI.
(viii) A ‘Bill Receivable’ for ` 10,000 was discounted with PNB, which charged 1% towards discounting. The
bank credited the net amount after deducting discount.
(ix) Withdrew ` 6,000 from the PNB.
(x) A Demand Draft was purchased for ` 3,000 from a bank after paying ` 10 towards their charges and
paid to the MTNL as security deposit.
(xi) Interest of ` 120 and ` 50 were credited and debited respectively by the PNB and SBI.
(xii) An amount of ` 4,000 was withdrawn from PNB and salaries paid in cash to that extent.
(xiii) Manager’s salary of ` 7,000 was paid by cheque drawn on SBI.
(xiv) PNB collected dividend of ` 2,500.
(xv) An amount of ` 10,000 was transferred from PNB to SBI

GUIDE TO ANSWERS

1. Cash Balance—` 2,420; Bank Balance—` 76,230; Discount Allowed—` 100; Discount Received—` 170.
2. Cash Balance—` 11,000; Bank Balance—` 31,500; Discount Received—` 500.
[Hint: Entry will not be passed for loss of goods by fire in the Cash Book.]
3. Cash Balance—` 16,220; Bank Balance—` 33,750; Discount Allowed—` 400; Discount Received—` 320.
4. Cash Balance—` 3,290; SBI—` 22,420; PNB—` 18,870.