Question

-Cash Book
Special Purpose Books
10.41
11. Enter the following transactions in Two-column Cash Book of Reema, and find cash and bank balances:
2020
1 Cash balance 2,000, bank balance 24,500
2 Cash sales
60,000
April
April
April
April
5 Deposited in Bank.......
50,000
7 Issued cheque to Sohan............
10,000
April 12 Received cheque from National Insurance Co. Ltd. against claim lodged last year
19,800
April 14 Sold goods to Niraj of 25,000, received cash 10,000 and balance by cheque.
Allowed him discount 500
April 16 Purchased furniture by cheque.
10,000
April 18 Sold old furniture for cash .....
10,000
April 20 Paid into bank cheque of Niraj along with cash 2,500
April 22 Paid to Suman by cheque ........
2,500
April 26 Suman's cheque returned on technical ground and paid cash for equal amount
April 26 Bank charged bouncing charges
300
April 29 Bank paid insurance premium as per standing instructions...
2,500
5,000
April 30 Nigam paid into bank directly, intimation received on the same day............
​

Answer 1

Answer:

cash balance - ₹ 27000

bank balance - ₹ 93500

Answer 2

Concept:

• On both the debit and credit sides of the double column cash book, also known as the two column cash book, there are two money columns: one for recording bank transactions and the other for recording cash transactions.
• In other words, a single column cash book would become a double column cash book if a bank column was added to each sides.
• While the bank column is used to record all revenues and payments made by checks and functions as a bank account, the cash column is used to record all cash transactions.
• At the conclusion of the appropriate time, which is typically one month, both columns are added together and balanced like a standard T-account.

Given:

Various transactions taken in the month of April.

Find:

Prepare a Double Column Cash Book.

Solution:

Refer the image.

Hence, the closing cash and bank balance is Rs.101600 and Rs. 121800 respectively.

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