Question

• Prepare Two (Cash and Bank) column cash book from the following transactions transactions for the
month of January, 2019:
Jan.
1 Balance in hand 250
Balance at bank 3,500
2 Received from pontry a cheque for 500 and
3 Purchased goods for cash 150
4 Paid Daulat Ram by cheque 100
5 Salaries paid to staff in cash 200
6 Withdrew from bank for office use 500
7 Purchased a typewriter and
Purchased goods for cash
paid a cheque for 500
​

Answer 1

Answer:

Explanation:

1. It will be shown in the Receipts side of opening balance of  cash column It will be shown in the Receipt side of opening column if Bank column of cash book
2. This will be shown in the receipt side of Bank account of cash book
3. It will be shown in the payment side of cash book under the head purchases
4. It will be shown in the payment side under the personal head of Daulat Ram
5. It will be shown in the payment side under the head "salaries"
6. It will be a contra entry wherein Bank account will be in the payment side and cash account will be in the receipt side.
7. Purchase of Typewriter is an Assets purchase if it is not his regular business of dealing in typewriter.  Cost of Typewriter will be shown on the payment with the cost of the typewriter & the Bank account will be credited, if paid by cheque  :  It will be shown in the payment side of cash book under the head Purchases and in the Bank column not in the cash column as payment has been made through Cheque.

RKD