Cash Book - Test Papers

 CBSE Test Paper 01

Ch-4 Recording of Transactions -II Cash Books & other Books

  1. Which balance of the bank column in the cash book signifies bank overdraft?

  2. Mention two transactions which are recorded in journal proper.

  3. Is it correct to say, sales book is a record prepared from invoices issued to customers?

  4. In which book of original entry, a discount of Rs. 50 offered for an early payment of cash of Rs. 1,050 be recorded?

  5. Described the advantages of sub-dividing the journal?

  6. Prepare the purchases return book in the book of Abdulla Stores from the following transactions:

    Mar 10Returned to Rizwan & Sons
     1 Orient fan 36" @ Rs. 1,250
     Trade discount 10%
    Mar 25Returned to Ram & Co
     1 dozen lamp-holders @ Rs. 200 per dozen
    Mar 27Returned to Prem & Co
     4 fancy light @ Rs. 50 each
     The light was purchased in cash
  7. From the following particulars provided by Rishi, prepare a cash book with suitable column.

    2013 Amt (Rs.)
    Mar 1Cash in hand85,000
     Bank Balance with ICICI2,50,000
     Overdraft with (Axis)1,75,000
    Mar 3Cash sales70,000
    Mar 5Paid salary to staff by cheque on ICICI1,00,000
    Mar 8Cheque received from Raj deposited with Axis90,000
    Mar 10Cash deposited into ICICI50,000
    Mar 12Amount transferred from ICICI to Axis by cheque30,000
    Mar 15Cash withdrew from ICICI80,000
  8. Prepare two column cash book from the following transactions for the month of April, 2013

    2013 Amt (Rs.)
    Apr 1Cash balance25,000
    Apr 2Paid to Y in full settlement of Rs. 5,0004,750
    Apr 4Received from Z, allowing him discount of Rs. 400 9,600
    Apr 7Cash purchases10,000
    Apr 11Cash sales15,000
    Apr 15Received from X, allowed him discount Rs. 50019,500
    Apr 21Paid to W against his dues of Rs. 7,5007,00
    Apr 25Paid into bank20,000
    Apr 30Withdrew for personal use5,000
    Apr 30Paid salary and wages15,000
  9. Enter the following transactions in proper subsidiary books of Balram

    2013 Amt (Rs.)
    Jan 1Sold goods to Rames21,000
     Bought of Hari Ram,31,200
    Jan 2Ramesh Returned goods3,000
     Sold to Dina Nath22,000
    Jan 2Purchased goods from Mangal28,000
    Jan 4Returned goods to Mangal4,000
    Jan 4Bought of Devi Dayal13,000
    Jan 4Sold to Zakir Hussain14,000
    Jan 5Zakir Hussain returned goods1,800
    Jan 6Sold to Ram Saran20,000
    Jan 6Sold to Ghanshyam12,000
    Jan 7Ram Saran returned goods2,000
    Jan 7Bought of  Devi Dayal28,000
    Jan 8Returned goods to Devi Dayal3,000
    Jan 9Purchased goods from Raghu Nath subject to a trade discount of 10%40,000
    Jan 10Sold to Raja Ram goods subject to trade discount of 5%20,000
  10. Prepare Simple Cash Book from the following transactions of Simarn, Delhi-

    2018 Rs.2018 Rs.


    Ms. Simran Commenced business with cash65,00017/3Paid for miscellaneous expenses450
    3/3Bought goods for cash, CGST and SGST Paid @ 6% each6,85019/3Received cash from Mr. Trilok Chand4,850
    4/3Paid cash to Mr. Mohan95022/3Purchased goods, CGST and SGST paid @ 6% each 2,500
    6/3Deposited in Bank40,00022/3Paid Salary4,000
    6/3Paid for office furniture in cash, CGST and SGST Paid @ 6% each4,65025/3Paid rent, CGST and SGST paid @ 6% each900
    9/3Sold goods for cash charge CGST and SGST @ 6% each30,00028/3Paid electricity bill350
    12/3Paid wages in cash1,20029/3Paid for advertising, CGST and SGST paid @ 6% each400
    13/3Paid for Stationery, CGST and SGST paid @ 6% each40031/3Paid into Bank25,000
    15/3Sold goods for cash, charged CGST and SGST @ 6% each25,000   

CBSE Test Paper 01
Ch-4 Recording of Transactions -II Cash Books & other Books


  1. Credit balance in the bank column of the cash book signifies bank overdraft. An overdraft is an extension of credit from a lending institution when an account reaches zero.

    1. Opening entry
    2. Recording of Depreciation
  2. Yes, as the source documents for recording entries in the sales book are invoices

  3. Cash book. A cash discount is a reduction in the amount of an invoice that the seller allows the buyer. This discount is given in exchange for the buyer paying the invoice earlier than the normal payment date of the invoice.

  4. In small concerns only one journal and one ledger may serve the purpose, because the number of transactions is very small. But in large business concerns the number of transactions are numerous, just one journal and one ledger will not do the job. That will cause much inconvenience i.e., if we have only one journal in a large scale business, it is not possible for one bookkeeper to record all the transactions in time. So the journal is sub divided. The various advantages of subsidiary books are as follows

    1. Division of Work: In place of one journal, many special journals are prepared. This results in division of work among various executives.
    2. Specialization: If a particular task is handled by a particular executive. This leads to specialization and increases efficiency.
    3. Time Saving: Dividing journal into different categories means different executives can work simultaneously on different journals which will increase the speed of work and will save time.
    4. Easy Access to Desired Information: Transactions are recorded on the basis of their nature i.e., purchase transactions in purchase book, sales transactions in sales book, etc. This facilitates easy and quick accessibilities to particular type of transactions.
    5. Quick Checking: In case of errors in recording, it is easier to find out the reasons of errors.
  5. Total of Purchases Return Book - Rs. 1,325

    Purchase Return Book


    Debit Note


    10, March, 2013

    M/s Rizwan & Sons                                                                                                                                                                                                  

        1 Orient fan 36" @ Rs. 1,250
         Less Trade discount 10%




    25, March, 2013

    M/s Ram & Co

        1 dozen lamp-holders @ Rs. 200 per dozen




    Purchases returns book is a book in which the goods returned to suppliers are recorded. It is also called returns outward book or purchases returns day book. 

  6. Cash Book

        Bank    Bank
       (Rs.)(Rs.)(Rs.)   (Rs.)(Rs.)(Rs.)
    2013     2013     
    Mar 1To Balanced b/d 85,0002,50,000 Mar 1By Balance b/d   1,75,000
    Mar 3To Sales A/c 70,000  Mar 5By Salaries A/c  1,00,000 
    Mar 8To Raj   90,000Mar 10By ICICIC50,000  
    Mar 10To Cash A/cC 50,000 Mar 12By AxisC 30,000 
    Mar 12To ICICIC  30,000Mar 15By Cash A/cC 80,000 
    Mar 15To ICICIC80,000  Mar 15By Balance c/d 1,85,00090,000 
    Mar 15To Balance c/d   55,000      














    Mar 16To Balance c/d 1,85,00090,000 Mar 16By Balance c/d   55,000

    The cash book is used to record receipts and payments of cash. It works as a book of original entry as well as a ledger account. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. 

  7. Cash Book

    April 01, 2013To Balance b/d                                                 25,000 April 02, 2013By Y                                                                                4,750250
    April 04, 2013To Z 9,600400April 07, 2013By Purchases 10,000 
    April 11, 2013To Sales 15,000 April 21, 2013By W 7,000500
    April 15, 2013To X 19,500500April 25, 2013By Bank 20,000 
         April 30, 2013By Drawing 5,000 
         April 30, 2013By Salary & Wages 15,000 
         April 30, 2013By Balance c/d 7,350 










    May 1, 2013To Balance b/d 7,350      
  8. Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work.

    In this question there is a need to draw Purchase Book, Sales Book, Sales Return Book, & Purchase Return Book.

    Purchase Book is that book in which we record all the business credit transactions related to the purchase of goods only. It is an original entry book like a Cash Book. It is also known as purchase register, purchase day book, purchase journal and purchase invoice book.

    Sales book is a book in which non-cash sales are recorded with details of customer, invoice, amount and date; these details are later posted to each customer's account in the sales ledger.

    At times the buyer may return goods due to poor quality, inaccurate quantity, untimely delivery or other reasons. It is also called returns inwards and an appropriate sales return or a returns inward book is maintained.

    Purchases returns book is a book in which the goods returned to suppliers are recorded. It is also called returns outward book or purchases returns day book. Goods may be returned because they are of the wrong kind or not up to sample or because they are damaged etc.

    The above mentioned all books are prepared as follows:-

    Purchase Book

    DateParticulars Invoice No.LFDetails (Rs.)Total Amt (Rs.)
    Jan 1Hari Ram    31,200
    Jan 2Mangal    28,000
    Jan 4Devi Dayal    13,000
    Jan 6Devi Dayal    28,000
    Jan 6Raghu Nath 40,000   
    Jan 10(-) Trade Discount 10% 4,000  36,000
     Purchase A/cDr   1,36,200

    Sales Book

    DateParticulars Invoice No.LFDetails (Rs.)Total Amt (Rs.)
    Jan 1Ramesh    21,000
    Jan 2Dina Nath    22,000
    Jan 4 Zakir Hussain    14,000
    Jan 6 Ram Saran    20,000
    Jan 6Ghanshyam    12,000
    Jan 10Raja Ram   20,000 
     (-) Trade Discount @ 5%   1,00019,000
     Sales A/cCr   1,08,000

    Purchase Returns Book

    DateParticulars Debit Note No.LFDetails (Rs.)Total Amt (Rs.)
    Jan 4Mangal    4,000
    Jan 8Devi Dayal    3,000
     Purchases Returns A/cCr   7,000

    Sales Returns Book

    DateParticulars Credit Note No.LFDetails (Rs.)Total Amt (Rs.)
    Jan 2Rajesh    3,000
    Jan 5Zakir Hussain    1,800
    Jan 7Ram Saran    2,000
     Sales Returns A/cDr   6,800
  9. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger. Larger firms usually divide the cash book into two parts: the cash disbursement journal that records all cash payments, such as accounts payable and operating expenses, and the cash receipts journal, which records all cash receipts, such as accounts receivable and cash sales. In this question it is to be maintained as follows:-

    Cash book (Single Column)

    2018   2018   
    Mar.1To Capital A/c 65,000Mar.3By Purchase A/c 6,850
    Mar.9To Sales A/c 30,000 By Input CGST A/c 411
     To Output CGST A/c 1,800 By Input SGST A/c 411
     To Output SGST A/c 1,800Mar.4By Mr. Mohan 950
    Mar.15To Sales A/c 25,000Mar.6By Bank A/c 40,000
     To Output CGST A/c 1,500Mar.6By Office Furn. A/c 4,650
     To Output SGST A/c 1,500 By Input CGST A/c 279
    Mar.19To Mr. Trilok Chand 4,850 By Input SGST A/c 279
        Mar.12By Wages A/c 1,200
        Mar.13By Stationery A/c 400
         By Input CGST A/c 24
         By Input SGST A/c 24
        Mar.17By Mise. Exp. A/c 450
        Mar.22By Purchase A/c 2,500
         By Input CGST A/c 150
         By Input SGST A/c 150
        Mar.22By Salary A/c 4,000
        Mar.25By Rent A/c 900
         By Input CGST A/c 54
         By Input SGST A/c 54
        Mar.28By Electricity bill 350
        Mar.29By Advertising A/c 400
         By Input CGST A/c 24
         By Input SGST A/c 24
        Mar.31By Bank A/c 25,000
        Mar.31By Balance c/d 41,916
       1,31,450 Total 1,31,450
    Apr. 1To Balance c/d 41,916