Enter the following transactions in the three cohumnar cash book and post the same to relevant account in the ledger
Answers
Answer:
Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded in detail. When cash is received it is entered on the debit or left hand side. Similarly, when cash is paid out the same is recorded on the credit or right hand side of the cash book.
The cash book, though it serves the purpose of a cash book of original entry viz., cash journal really it represents the cash account of the ledger separately bound for the sake of convenience. It is more a ledger than a journal. It is journal as cash transactions are chronologically recorded in it. It is a ledger as it contains a classified record of all cash transactions. The balances of the cash book are recorded in the trial balance and the balance sheet.
Explanation:
lution:
Cash Book
Date
Particulars
L.F.
Amount
Date
Particulars
L.F.
Amount
1991
Jan. 1
16
20
To Balance b/d
To Akbar
To sales a/c
To Balance b/d
15,000
3,000
4,000
22,000
15,940
Jan. 6
18
25
30
31
By Purchases a/c
By Babar
By stationary
By Salaries a/c
By Furniture a/c
By Balance c/d
2,000
1,000
60
1,000
2,000
15,940
22,000
Akbar
1991
Jan. 16
By Cash
A double column cash book or two column cash book