Question

5. Prepare simple cash book from the following transactions:
2017
March-01 Cash in hand
March-03 Purchased furniture for cash
March-06 Sold goods for cash
March-10 Paid to Mohan on account
Mrach-15 Bought goods for cash
March-18 Paid for stationery
March-20 Sold old type writer for cash
March-24 Deposited into bank
March-28 Paid salary to staff
March-31 Paid for carriage on purchase
(Ans: Cash in hand Rs.51000/-)
Rs.
75,000
12,000 4
32,500
5,000.
12,000 i
1,500
1,000
25,000
1,200
800​

Answer 1

Answer:

solution is abovementioned

Answer 2

Given:

2017

March-01 Cash in hand 75000

March-03 Purchased furniture for cash  12000

March-06 Sold goods for cash 32500

March-10 Paid to Mohan on account 5000

March-15 Bought goods for cash 12000

March-18 Paid for stationery 1500

March-20 Sold old typewriter for cash 1000

March-24 Deposited into the bank 25000

March-28 Paid salary to staff 1200

March-31 Paid for carriage on purchase 800

To Find:

Prepare simple cash book

Solution:

• Opening cash in hand is an asset and so it is written on the debit side as balance b/d
• since furniture is not stock so the word furniture is written and not 'purchases'
• all types of receipts are written on the debit side of the cash book
• all types of payments is written on the credit side of the cash book
• closing balance of Rs51000 shall be carried down as opening balance and will be written as an asset for the balance sheet of the relevant year
• we have assumed that Mohan is paid by cash

The simple cash book has been prepared and attached below,