Question

Prepare two column cash book from the following transactions of Santosh kumar 2014. March first cash in hand rupees 45000 march second bought good for cash 3000 march third deposited into bank 31000

Answer 1

March 1 To balance b/d 45000

March 2 By purchases a/c. 3000. March 3 By bank a/c. 31000. All the above are cash transactions. Transaction which took place on March 3 is contra entry and C should be written in l.f beside it. March 3 To cash a/c. 31000. This is a bank transaction. C should be written in l.f . The amount will be in bank column.