(b) Enter the following transactions in a Simple Cash
Book of Reema, Delhi: [5]
Jan Started business with cash
100 000
Jan 2. Opened a bank account and deposited 50,000
Jan 3. Purchased goods for cash
20,000
Jan 3. Sold goods to Ram
5.000
Jan 5 Received from Ram
Jan 7 Paid Rent
4.000
Jan 8 Sold Goods for cash
10,000
Jan 10 Withdrew cash from bank
000
Jan 27 Purchased Fumiture in cash from a trader 15,000
Jan 31 Paid Salaries to staff
5.000
Answers
Answer:dr when cash is coming In and cr cash whenever going out same with bank balance, if your bank balance is increasing then Dr vice versa for eg Explanation:in Dr side of your cash book in cash column enter amt 100000 and write capital a/c.journal entry will be cash a/c Dr to capital 3,remember whenever asset increase u will Dr and when ever liability increase u cr and if u want to reduce do opposite u can solve this problem with this rule jan 3rd,cash is getting reduce so it is getting cr purchase is exp so it Dr balance so journal entry would be purchase a/c Drto cash a/cjan 3 rd(if Sale in cash then it will come in cash book) journal entry would be cash a/c Dr to sales cash is increasing so Dr itsales is income, income has cr balance jan 5 cash a/c Drto ramcash increasing Dr ram was our debtors so asset have Dr balance so ram gave us money no we will remove him from debtors for that we have done cr jan 7rent a/c Drto cash a/c(rent paid) jan 8cash a/c Drto sales a/cjan 10cash Dr to bank here cash is removed from bank so your bank balance is getting reduce since bank balance is asset(Dr) and it is getting reduce cr it and cash balance is increasing so Dr it jan 27 furniture a/c Drto cash a/cfurniture is assert so it will have Dr balance and cash is going out so our cash assert is decreasing so cr it jan 31 salary a/c Drto cash a/csalary is expense so it will have Dr balance cash is getting reduce so cr remember assert Dr balanceliability cr balance expense Dr balanceincome cr balancedo opposite if u want to reduce them hope iam able to help u