Cash Book - Test Papers
CBSE Test Paper 01
Ch-4 Recording of Transactions -II Cash Books & other Books
Which balance of the bank column in the cash book signifies bank overdraft?
Mention two transactions which are recorded in journal proper.
Is it correct to say, sales book is a record prepared from invoices issued to customers?
In which book of original entry, a discount of Rs. 50 offered for an early payment of cash of Rs. 1,050 be recorded?
Described the advantages of sub-dividing the journal?
Prepare the purchases return book in the book of Abdulla Stores from the following transactions:
2013 Mar 10 Returned to Rizwan & Sons 1 Orient fan 36" @ Rs. 1,250 Trade discount 10% Mar 25 Returned to Ram & Co 1 dozen lamp-holders @ Rs. 200 per dozen Mar 27 Returned to Prem & Co 4 fancy light @ Rs. 50 each The light was purchased in cash From the following particulars provided by Rishi, prepare a cash book with suitable column.
2013 Amt (Rs.) Mar 1 Cash in hand 85,000 Bank Balance with ICICI 2,50,000 Overdraft with (Axis) 1,75,000 Mar 3 Cash sales 70,000 Mar 5 Paid salary to staff by cheque on ICICI 1,00,000 Mar 8 Cheque received from Raj deposited with Axis 90,000 Mar 10 Cash deposited into ICICI 50,000 Mar 12 Amount transferred from ICICI to Axis by cheque 30,000 Mar 15 Cash withdrew from ICICI 80,000 Prepare two column cash book from the following transactions for the month of April, 2013
2013 Amt (Rs.) Apr 1 Cash balance 25,000 Apr 2 Paid to Y in full settlement of Rs. 5,000 4,750 Apr 4 Received from Z, allowing him discount of Rs. 400 9,600 Apr 7 Cash purchases 10,000 Apr 11 Cash sales 15,000 Apr 15 Received from X, allowed him discount Rs. 500 19,500 Apr 21 Paid to W against his dues of Rs. 7,500 7,00 Apr 25 Paid into bank 20,000 Apr 30 Withdrew for personal use 5,000 Apr 30 Paid salary and wages 15,000 Enter the following transactions in proper subsidiary books of Balram
2013 Amt (Rs.) Jan 1 Sold goods to Rames 21,000 Bought of Hari Ram, 31,200 Jan 2 Ramesh Returned goods 3,000 Sold to Dina Nath 22,000 Jan 2 Purchased goods from Mangal 28,000 Jan 4 Returned goods to Mangal 4,000 Jan 4 Bought of Devi Dayal 13,000 Jan 4 Sold to Zakir Hussain 14,000 Jan 5 Zakir Hussain returned goods 1,800 Jan 6 Sold to Ram Saran 20,000 Jan 6 Sold to Ghanshyam 12,000 Jan 7 Ram Saran returned goods 2,000 Jan 7 Bought of Devi Dayal 28,000 Jan 8 Returned goods to Devi Dayal 3,000 Jan 9 Purchased goods from Raghu Nath subject to a trade discount of 10% 40,000 Jan 10 Sold to Raja Ram goods subject to trade discount of 5% 20,000 Prepare Simple Cash Book from the following transactions of Simarn, Delhi-
2018 Rs. 2018 Rs. 1/3
Ms. Simran Commenced business with cash 65,000 17/3 Paid for miscellaneous expenses 450 3/3 Bought goods for cash, CGST and SGST Paid @ 6% each 6,850 19/3 Received cash from Mr. Trilok Chand 4,850 4/3 Paid cash to Mr. Mohan 950 22/3 Purchased goods, CGST and SGST paid @ 6% each 2,500 6/3 Deposited in Bank 40,000 22/3 Paid Salary 4,000 6/3 Paid for office furniture in cash, CGST and SGST Paid @ 6% each 4,650 25/3 Paid rent, CGST and SGST paid @ 6% each 900 9/3 Sold goods for cash charge CGST and SGST @ 6% each 30,000 28/3 Paid electricity bill 350 12/3 Paid wages in cash 1,200 29/3 Paid for advertising, CGST and SGST paid @ 6% each 400 13/3 Paid for Stationery, CGST and SGST paid @ 6% each 400 31/3 Paid into Bank 25,000 15/3 Sold goods for cash, charged CGST and SGST @ 6% each 25,000
CBSE Test Paper 01
Ch-4 Recording of Transactions -II Cash Books & other Books
Answer
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.
- Opening entry
- Recording of Depreciation
Yes, as the source documents for recording entries in the sales book are invoices
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.
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
- Division of Work: In place of one journal, many special journals are prepared. This results in division of work among various executives.
- Specialization: If a particular task is handled by a particular executive. This leads to specialization and increases efficiency.
- 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.
- 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.
- Quick Checking: In case of errors in recording, it is easier to find out the reasons of errors.
Total of Purchases Return Book - Rs. 1,325
Purchase Return Book
Date Particulars Debit Note
No.
L.F. Details Amount 10, March, 2013 M/s Rizwan & Sons
1 Orient fan 36" @ Rs. 1,250
Less Trade discount 10%1,250
125
1,125 25, March, 2013 M/s Ram & Co
1 dozen lamp-holders @ Rs. 200 per dozen
200 Total 1,325
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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.
Cash Book
Bank Bank Date Particulars L/F Cash ICICI Axis Date Particulars L/F Cash ICICI Axis (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) 2013 2013 Mar 1 To Balanced b/d 85,000 2,50,000 Mar 1 By Balance b/d 1,75,000 Mar 3 To Sales A/c 70,000 Mar 5 By Salaries A/c 1,00,000 Mar 8 To Raj 90,000 Mar 10 By ICICI C 50,000 Mar 10 To Cash A/c C 50,000 Mar 12 By Axis C 30,000 Mar 12 To ICICI C 30,000 Mar 15 By Cash A/c C 80,000 Mar 15 To ICICI C 80,000 Mar 15 By Balance c/d 1,85,000 90,000 Mar 15 To Balance c/d 55,000 2,35,000
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3,00,000
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1,75,000
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2,35,000
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3,00,000
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1,75,000
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Mar 16 To Balance c/d 1,85,000 90,000 Mar 16 By 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.
Cash Book
Date Particulars V.No. Cash Discount Date Particulars V.No. Cash Discount April 01, 2013 To Balance b/d 25,000 April 02, 2013 By Y 4,750 250 April 04, 2013 To Z 9,600 400 April 07, 2013 By Purchases 10,000 April 11, 2013 To Sales 15,000 April 21, 2013 By W 7,000 500 April 15, 2013 To X 19,500 500 April 25, 2013 By Bank 20,000 April 30, 2013 By Drawing 5,000 April 30, 2013 By Salary & Wages 15,000 April 30, 2013 By Balance c/d 7,350 69,100
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900
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69,100
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750
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May 1, 2013 To Balance b/d 7,350 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
Date Particulars Invoice No. LF Details (Rs.) Total Amt (Rs.) 2013 Jan 1 Hari Ram 31,200 Jan 2 Mangal 28,000 Jan 4 Devi Dayal 13,000 Jan 6 Devi Dayal 28,000 Jan 6 Raghu Nath 40,000 Jan 10 (-) Trade Discount 10% 4,000 36,000 Purchase A/c Dr 1,36,200 Sales Book
Date Particulars Invoice No. LF Details (Rs.) Total Amt (Rs.) 2013 Jan 1 Ramesh 21,000 Jan 2 Dina Nath 22,000 Jan 4 Zakir Hussain 14,000 Jan 6 Ram Saran 20,000 Jan 6 Ghanshyam 12,000 Jan 10 Raja Ram 20,000 (-) Trade Discount @ 5% 1,000 19,000 Sales A/c Cr 1,08,000 Purchase Returns Book
Date Particulars Debit Note No. LF Details (Rs.) Total Amt (Rs.) 2013 Jan 4 Mangal 4,000 Jan 8 Devi Dayal 3,000 Purchases Returns A/c Cr 7,000 Sales Returns Book
Date Particulars Credit Note No. LF Details (Rs.) Total Amt (Rs.) 2013 Jan 2 Rajesh 3,000 Jan 5 Zakir Hussain 1,800 Jan 7 Ram Saran 2,000 Sales Returns A/c Dr 6,800 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)
Date Particulars LF Rs. Date Particulars LF Rs. 2018 2018 Mar.1 To Capital A/c 65,000 Mar.3 By Purchase A/c 6,850 Mar.9 To 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 1,800 Mar.4 By Mr. Mohan 950 Mar.15 To Sales A/c 25,000 Mar.6 By Bank A/c 40,000 To Output CGST A/c 1,500 Mar.6 By Office Furn. A/c 4,650 To Output SGST A/c 1,500 By Input CGST A/c 279 Mar.19 To Mr. Trilok Chand 4,850 By Input SGST A/c 279 Mar.12 By Wages A/c 1,200 Mar.13 By Stationery A/c 400 By Input CGST A/c 24 By Input SGST A/c 24 Mar.17 By Mise. Exp. A/c 450 Mar.22 By Purchase A/c 2,500 By Input CGST A/c 150 By Input SGST A/c 150 Mar.22 By Salary A/c 4,000 Mar.25 By Rent A/c 900 By Input CGST A/c 54 By Input SGST A/c 54 Mar.28 By Electricity bill 350 Mar.29 By Advertising A/c 400 By Input CGST A/c 24 By Input SGST A/c 24 Mar.31 By Bank A/c 25,000 Mar.31 By Balance c/d 41,916 1,31,450 Total 1,31,450 Apr. 1 To Balance c/d 41,916
