Question

name the transaction that is recorded on both sides of cash book simultaneously

Answer 1

Answer:

it is called as contra entry

where cash and bank both a/c are contra of each other

Bank a/c Dr. xxx

To Cash A/c. xxx

seperate column for bank ..

cash a/c appears

separate column for cash

where bank a/c appears

Answer 2

Explanation:

✓The left side of the cash book shows the receipts of the cash whereas the right side of the cash book shows all the payments made in cash.

✓The accounts appearing on then debit side for the cash book are credited in the respective ledger accounts because cash has been received

in respect of them.

✓Thus, in our example, an entry ‘cash received from Gurmeet‘ appears on the debit side of the cash book conveys that the cash has been received from Gurmeet. ✓Therefore, in the ledger, Gurmeet’s account will be

credited by writing ‘Cash’ in the particulars column on the credit side. Similarly,

all the account names appearing on the credit side of the cash book are debited

as cash/cheque has been paid in respect of them. Now, notice, how the

transactions in our example are posted to the related ledger accounts: