Chapter 4 Recording of Transactions II Solutions

Question - 21 : - Prepare a double column cash book with the help of following information for December 2016:

₹

01

Started business with cash

1,20,000

03

Cash paid into bank

50,000

05

Purchased goods from Sushmita

20,000

06

Sold goods to Dinesh and received a cheque

20,000

10

Paid to Smita cash

20,000

14

Cheque received on December 06, 2016 deposited into bank

18

Sold goods to Rani

12,000

20

Cartage paid in cash

500

22

Received cash from Rani

12,000

27

Commission received

5,000

30

Drew cash for personal use

2,000

Answer - 21 : -

Cash book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2016					2016
01 Dec	Capital		1,20,000		03 Dec	Bank	C	50,000
03 Dec	Cash	C		50,000	10 Dec	Sushmita		20,000
06 Dec	Dinesh		20,000		14 Dec	Bank	C	20,000
14 Dec	Cash	C		20,000	20 Dec	Cartage		500
22 Dec	Rani		12,000		30 Dec	Drawings	C	2,000
27 Dec	Commission		5,000		31 Dec	Balance c/d		64,500	70,000
			1,57,000	70,000				1,57,000	70,000

Question - 22 : - Record the following transactions in a bank column cash book for December 2016:

₹

01

Started business with cash

80,000

04

Deposited in bank

50,000

10

Received cash from Rahul

1,000

15

Bought goods for cash

8,000

22

Bought goods by cheque

10,000

25

Paid to Shyam by cash

20,000

30

Drew from Bank for office use

2,000

31

Rent paid by cheque

1,000

Answer - 22 : -

Cash book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2016					2016
01 Dec	Capital		80,000		04 Dec	Bank	C		50,000
04 Dec	Cash	C		50,000	15 Dec	Purchases		8,000
10 Dec	Rahul		1,000		22 Dec	Purchases			10,000
30 Dec	Bank	C	2,000		25 Dec	Ram		20,000
					30 Dec	Cash	C		2,000
					31 Dec	Rent			1,000
					31 Dec	Balance c/d		5,000	37,000
			83,000	50,000				83,000	50,000

Question - 23 : - Prepare double column cash book from the following information for September 2017:

₹

01

Cash in hand

7,500

Bank overdraft

3,500

03

Paid wages

200

05

Cash sales

7,000

10

Cash deposited into bank

4,000

15

Goods purchased and paid by cheque

2,000

20

Paid rent

500

25

Drew from bank for personal use

400

30

Salary paid

1,000

Answer - 23 : -

Cash Book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Sep	Balance b/d		7,500		01 Sep	Balance b/d (Overdraft)			3,500
05 Sep	Sales		7,000		03 Sep	Wages		200
10 Sep	Cash	C		4,000	10 Sep	Bank	C	4,000
					15 Sep	Purchases			2,000
					20 Sep	Rent		500
					25 Sep	Drawings			400
					30 Sep	Salaries		1,000
30 Sep	Balance c/d (Overdraft)			1,900	30 Sep	Balance c/d		8,800
			14,500	5,900				14,500	5,900

Question - 24 : - Enter the following transactions in double column cash book of M/s Ambica Traders for November 2017:

₹

01

Commenced business with cash

50,000

03

Opened bank account with ICICI

30,000

05

Purchased goods for cash

10,000

10

Purchased office machine for cash

5,000

15

Sales goods on credit from Rohan and received cheque

7,000

18

Cash sales

8,000

20

Rohan’s cheque deposited into bank

22

Paid cartage by cheque

500

25

Cash withdrawn for personal use

2,000

30

Paid rent by cheque

1,000

Answer - 24 : -

M/s. Ambica Traders Cash Book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Nov	Capital		50,000		03 Nov	Bank	C	30,000
03 Nov	Cash	C		30,000	05 Nov	Purchases		10,000
15 Nov	Rohan		7,000		10 Nov	Office Machine		5,000
18 Nov	Sales		8,000		20 Nov	Bank	C	7,000
20 Nov	Cash	C		7,000	22 Nov	Cartage			500
					25 Nov	Drawings		2,000
					30 Nov	Rent			1,000
					30 Nov	Balance c/d		11,000	35,500
			65,000	37,000				65,000	37,000

Question - 25 : - Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2017:

₹

01

Cash in hand

3,500

Bank overdraft

2,300

03

Goods purchased for cash

1,200

05

Paid wages

200

10

Cash sales

8,000

15

Deposited into bank

6,000

22

Sold goods for cheque which was deposited into bank same day

2,000

25

Paid rent by cheque

1,200

28

Drew from bank for personal use

1,000

31

Bought goods by cheque

1,000

Answer - 25 : -

M/s. Mohit Traders Cash Book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Jan	Balance b/d		3,500		01 Jan	Balance b/d (overdraft)			2,300
10 Jan	Sales		8,000		03 Jan	Purchases		1,200
15 Jan	Cash	C		6,000	05 Jan	Wages		200
22 Jan	Sales			2,000	15 Jan	Bank	C	6,000
					25 Jan	Rent			1,200
					28 Jan	Drawings			1,000
					31 Jan	Purchases			1,000
					31 Jan	Balance c/d		4,100	2,500
			11,500	8,000				11,500	8,000

Question - 26 : - Prepare double column cash book from the following transactions for the year December 2017:

₹

01

Cash in hand

17,500

Cash at bank

5,000

03

Purchased goods for cash

3,000

05

Received cheque from Jasmeet

10,000

08

Sold goods for cash

7,000

10

Jasmeet’s cheque deposited into bank

12

Purchased goods and paid by cheque

20,000

15

Paid establishment expenses through bank

1,000

18

Cash sales

7,000

20

Deposited into bank

10,000

24

Paid trade expenses

500

27

Received commission by cheque

6,000

29

Paid Rent

2,000

30

Withdrew cash for personal use

1,200

31

Salary paid

6,000

Answer - 26 : -


Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Dec	Balance b/d		17,500	5,000	03 Dec	Purchases		3,000
05 Dec	Jasmeet		10,000		10 Dec	Bank	C	10,000
08 Dec	Sales		7,000		12 Dec	Purchases			20,000
10 Dec	Cash	C		10,000	15 Dec	Establishment Expenses			1,000
18 Dec	Sales		7,000		20 Dec	Bank	C	10,000
20 Dec	Cash	C		10,000	24 Dec	Trade Expenses		500
27 Dec	Commission			6,000	29 Dec	Rent		2,000
					30 Dec	Drawings		1,200
					31 Dec	Salaries		6,000
					31 Dec	Balance c/d		8,800	10,000
			41,500	31,000				41,500	31,000

For the month ofDecember 2017, the cash in hand is ₹.8, 800 and the cash in bank is 10,000.

Question - 27 : - M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. He had the following transaction in the month of July, 2017:

₹

03

Cash sales

2,300

05

Purchased goods, paid by cheque

6,000

08

Cash sales

10,000

12

Paid trade expenses

700

15

Sales goods, received cheque (deposited same day)

20,000

18

Purchased motor car paid by cheque

15,000

20

Cheque received from Manisha (deposited same day)

10,000

22

Cash Sales

7,000

25

Manisha’s cheque returned dishonoured

28

Paid Rent

2,000

29

Paid telephone expenses by cheque

500

31

Cash withdrawn for personal use

2,000

Prepare bank column cash book

Answer - 27 : -

Books of M/s. Ruchi Trader
Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash ₹	Bank ₹	Date	Particulars	L.F.	Cash ₹	Bank ₹
2017					2017
Jul.01	Balance b/d		1,354	7,560	Jul.05	Purchases			6,000
Jul.03	Sales		2,300		Jul.12	Trade Expenses		700
Jul.08	Sales		10,000		Jul.18	Motor Car			15,000
Jul.15	Sales			20,000	Jul.25	Manisha (Dishonour)			10,000
Jul.20	Manisha			10,000	Jul.28	Rent		2,000
Jul.22	Sales		7,000		Jul.29	Telephone Expenses			500
					Jul.31	Drawings		2,000
					Jul.31	Balance c/d		15,954	6,060

			20,654	37,560				20,654	37,560

For month of July Cashin Hand is ₹. 15,954 and the Cash in Bank is ₹ 6,060.

Question - 28 : - Record the following transactions during the week ending June. 30, 2017 with a weekly imprest ₹ 500

₹

24

Stationery

100

25

Bus fare

12

25

Cartage

40

26

Taxi fare

80

27

Wages to casual labour

90

29

Postage

80

Answer - 28 : -

Petty Cash Book
Amount Received	Date	Particulars	Voucher No.	Amount Paid	Analysis of Payments					Remarks
₹	2017 Jun			₹	Postage	Telephone & Telegram	Conveyance	Stationery	Misc.	Remarks
	2017
500	24 Jun	Cash Received
	24 Jun	Stationery		100				100
	25 Jun	Bus Fare		12			12
	25 Jun	Cartage		40			40
	26 Jun	Taxi Fare		80			80
	27 Jun	Wages		90					90
	27 Jun	Postage		80	80
				402	80		132	100	90
	27 Jun	Balance c/d		98
500				500
98	28 Jun	Balance b/d
402	28 Jun	Cash received

Question - 29 : - Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.

July
2017

₹

01

Paid cartage

50

02

STD charges

40

02

Bus fare

20

03

Postage

30

04

Refreshment for employees

80

06

Courier charges

30

08

Refreshment of customer

50

10

Cartage

35

15

Taxi fare to manager

70

18

Stationery

65

20

Bus fare

10

22

Fax charges

30

25

Telegrams charges

35

27

Postage stamps

200

29

Repair on furniture

105

30

Laundry expenses

115

31

Miscellaneous expenses

100

Answer - 29 : -

Petty Cash Book
Amount Received	Date	Particulars	Voucher No.	Amount Paid	Analysis of Payments					Remarks
₹	2017 July			₹	Postage	Telephone & Telegram	Conveyance	Stationery	Misc.	Remarks
	2017
2000	01 Jul	Cash received
	01 Jul	Cartage		50			50
	02 Jul	STD Charges		40		40
	02 Jul	Bus fare		20			20
	03 Jul	Postage		30	30
	04 Jul	Refreshments		80					80
	06 Jul	Courier Charges		30	30
	08 Jul	Refreshments		50					50
	10 Jul	Cartage		35			35
	15 Jul	Taxi fare		70			70
	18 Jul	Staionery		65				65
	20 Jul	Bus fare		10			10
	22 Jul	Fax		30		30
	25 Jul	Telegram Charges		35		35
	27 Jul	Postage		200	200
	29 Jul	Furniture Repair		105					105
	30 Jul	Laundry		115					115
	31 Jul	Misc		100					100
				1065	260	105	185	65	450
	31 Jul	Balance c/d		935
2,000				2,000
935	01 Aug	Balance b/d
1,065	01 Aug	Cash received

Cash Balance at theend of the week is ₹.935

Question - 30 : - Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017:

01

Bought from Rahul Traders as per invoice no. 20041

40 Registers @ ₹ 60 each

80 Gel Pens @ ₹ 15 each

50 note books @ ₹ 20 each

Trade discount 10%.

15

Bought from Global Stationers as per invoice no. 1132

40 Ink Pads @ ₹ 8 each

50 Files @ ₹ 10 each

20 Color Books @ ₹ 20 each

Trade Discount 5%

23

Purchased from Lamba Furniture as per invoice no. 3201

2 Chairs @ 600 per chair

1 Table @ 1,000 per table

25

Bought from Mumbai Traders as per invoice no. 1111

10 Paper Rim @ ₹ 100 per rim

400 drawing Sheets @ ₹ 3 each

20 Packet water colour @ ₹ 40 per packet

From the abovequestion we see that Gupta Traders deals with stationery. On 23^rd July the purchase of furniture is toward the use ofcompany and hence, will not be considered as an entry in purchase book.

Answer - 30 : -

Books of M/s Gupta Traders Purchases Book
Date	Invoice No.	Name of the Supplier (Account to be credited)	L.F.	Details ₹	Amount ₹
2017
01 Jul	20041	Rahul Traders
		40 Registers @ ₹ 60 each		2,400
		80 Gel Pens @ ₹ 15 each		1,200
		50 Note Books @ ₹ 20 each		1,000
				4,600
		Less: Trade Discount 10%		(460)	4,140
15 Jul	1132	Global Stationers
		40 Ink Pads @ ₹ 8 each		320
		50 Files @ ₹ 10 each		500
		20 Colour Books @ ₹ 20 each		400
				1,220
		Less: Trade discount 5%		(61)	1,159
25 Jul	1111	Mumbai Traders
		10 Paper rims @ ₹ 100 each		1,000
		400 Drawing Sheets @ ₹ 3 each		1,200
		20 Packets Water Colour @ ₹ 40 per pack		800	3,000

		Purchases Account			8,299

The purchase book doesnot contain a details column but it is included here for helping the studentsunderstand the concept.

Free - Previous Years Question Papers

		₹
01	Started business with cash	1,20,000
03	Cash paid into bank	50,000
05	Purchased goods from Sushmita	20,000
06	Sold goods to Dinesh and received a cheque	20,000
10	Paid to Smita cash	20,000
14	Cheque received on December 06, 2016 deposited into bank
18	Sold goods to Rani	12,000
20	Cartage paid in cash	500
22	Received cash from Rani	12,000
27	Commission received	5,000
30	Drew cash for personal use	2,000

		₹
01	Started business with cash	80,000
04	Deposited in bank	50,000
10	Received cash from Rahul	1,000
15	Bought goods for cash	8,000
22	Bought goods by cheque	10,000
25	Paid to Shyam by cash	20,000
30	Drew from Bank for office use	2,000
31	Rent paid by cheque	1,000

		₹
01	Cash in hand	7,500
	Bank overdraft	3,500
03	Paid wages	200
05	Cash sales	7,000
10	Cash deposited into bank	4,000
15	Goods purchased and paid by cheque	2,000
20	Paid rent	500
25	Drew from bank for personal use	400
30	Salary paid	1,000

		₹
01	Commenced business with cash	50,000
03	Opened bank account with ICICI	30,000
05	Purchased goods for cash	10,000
10	Purchased office machine for cash	5,000
15	Sales goods on credit from Rohan and received cheque	7,000
18	Cash sales	8,000
20	Rohan’s cheque deposited into bank
22	Paid cartage by cheque	500
25	Cash withdrawn for personal use	2,000
30	Paid rent by cheque	1,000

		₹
01	Cash in hand	17,500
	Cash at bank	5,000
03	Purchased goods for cash	3,000
05	Received cheque from Jasmeet	10,000
08	Sold goods for cash	7,000
10	Jasmeet’s cheque deposited into bank
12	Purchased goods and paid by cheque	20,000
15	Paid establishment expenses through bank	1,000
18	Cash sales	7,000
20	Deposited into bank	10,000
24	Paid trade expenses	500
27	Received commission by cheque	6,000
29	Paid Rent	2,000
30	Withdrew cash for personal use	1,200
31	Salary paid	6,000

		₹
03	Cash sales	2,300
05	Purchased goods, paid by cheque	6,000
08	Cash sales	10,000
12	Paid trade expenses	700
15	Sales goods, received cheque (deposited same day)	20,000
18	Purchased motor car paid by cheque	15,000
20	Cheque received from Manisha (deposited same day)	10,000
22	Cash Sales	7,000
25	Manisha’s cheque returned dishonoured
28	Paid Rent	2,000
29	Paid telephone expenses by cheque	500
31	Cash withdrawn for personal use	2,000

July 2017		₹
01	Paid cartage	50
02	STD charges	40
02	Bus fare	20
03	Postage	30
04	Refreshment for employees	80
06	Courier charges	30
08	Refreshment of customer	50
10	Cartage	35
15	Taxi fare to manager	70
18	Stationery	65
20	Bus fare	10
22	Fax charges	30
25	Telegrams charges	35
27	Postage stamps	200
29	Repair on furniture	105
30	Laundry expenses	115
31	Miscellaneous expenses	100

01	Bought from Rahul Traders as per invoice no. 20041
	40 Registers @ ₹ 60 each
	80 Gel Pens @ ₹ 15 each
	50 note books @ ₹ 20 each
	Trade discount 10%.
15	Bought from Global Stationers as per invoice no. 1132
	40 Ink Pads @ ₹ 8 each
	50 Files @ ₹ 10 each
	20 Color Books @ ₹ 20 each
	Trade Discount 5%
23	Purchased from Lamba Furniture as per invoice no. 3201
	2 Chairs @ 600 per chair
	1 Table @ 1,000 per table
25	Bought from Mumbai Traders as per invoice no. 1111
	10 Paper Rim @ ₹ 100 per rim
	400 drawing Sheets @ ₹ 3 each
	20 Packet water colour @ ₹ 40 per packet

Chapter 4 Recording of Transactions II Solutions

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