Question

5. Record the following transactions in Double Column Cash Book and balance the book on 31st March, 2020-
72,400
2020
12,750
March 1 Cash in Hand..........
Cash at Bank.............
March 4 Received from Asha cash 1,200 and a cheque for 3,200, allowed discount 400
25,600
March 7 Paid salary to staff by cheque......
21,900
March 9 Withdrawn cash from bank for office use
1,200
March 12 Interest paid by bank on bank balance.........
16,500
March 16 Purchased furniture in cash.....
10,900
March 21 Paid to Mohan & Co. by cheque, discount received 100
11,600
March 24 Proprietor withdrew from office cash for his personal use......
14.800
March 29 Sold goods to Manoj for cash......
21.200
March 31 Deposited office cash in bank.
[Cash Balance-1,350; Bank Balance 39,600.​

Answer 1

Answer:

cash balance - ₹ 1350

bank balance- ₹ 39600

Answer 2

Answer:

A double-column cash book, even understood as a two-column cash book, consists of two columns on each side to record cash and bank transactions.

Explanation:

A two-column cash book exists one in which there exist two columns on each side.

In the Double Column Cash Book All transactions which are highlighted with (*) are described as following as follows: –

To understand the posting of this transaction, first, we maintain to understand the journal entry of this transaction. Which is displayed as follows:

Cash A/c                                Dr.     21,900

                 To Bank A/c                     21,900

(Being cash withdrawal from the bank for office use)

So, According to the above journal entry, Both accounts cash & bank for which we keep an organized cash book are concerned in this transaction,

So, we have to establish the treatment of both accounts in the cash book by publishing one entry in the cash column and another in the bank column of the cash book.

Here cash a/c is debited by the bank a/c, so we will show the bank a/c on the debit side of the cash book and the amount will be shown in the cash column because cash exists rising.

And we will display the Cash a/c on the Credit side of the cash book and the amount will be shown in the Bank column because the Bank balance is Declining.

*Mar.31 Deposited office cash into bank 21,200

To understand the posting of this transaction, first, we have to understand the journal entry of this transaction. This is shown as below,:

Bank A/c                                Dr.     21,200

                 To Cash A/c                                           21,200

(Being cash deposited into bank a/c)

So, According to the overhead journal entry, Both accounts cash & bank for which we have designed a cash book are concerned in this transaction,

So, we have to ascertain the treatment of both accounts in the cash book by posting one entry in the cash column and another in the bank column of the cash book.

Here Bank a/c is debited by the Cash a/c, so we will guide the Cash a/c on the debit side of the cash book and the amount will be shown in the Bank column because the Bank balance is increasing.

And we will display the bank a/c on the Credit side of the cash book and the amount will be shown in the Cash column because Cash a/c is Decreasing.

The Double Column Cash Book is are follows,

#SPJ3