# TS Grewal Accountancy Class 11 Solution Chapter 7 Special Purpose Books Cash Book

Read TS Grewal Accountancy Class 11 Solution Chapter 7 Special Purpose Books Cash Book below, students should study TS Grewal class 11 Accountancy available on Studiestoday.com with solved questions and answers. These chapter wise answers for class 11 Accountancy have been prepared by teacher of Grade 11. These TS Grewal class 11 Solutions have been designed as per the latest NCERT syllabus for class 11 and if practiced thoroughly can help you to score good marks in standard 11 Accountancy class tests and examinations

Page No 10.40:

Question 1:

Without Goods and Services Tax (GST)
Enter the following transactions of Mr. Ripinder, Delhi in a Single Column Cash Book and balance it:

 2018 (Rs) Jan 1 Ripinder started business with capital 2,00,000 Jan 2 Purchased furniture for cash 50,000 Jan 3 Purchased goods for cash 30,000 Jan 5 Paid freight 500 Jan 7 Sold goods for cash 28,000 Jan 10 Paid to Ramesh 20,000 Jan 15 Sold goods for cash 10,000 Jan 20 Paid wages 10,000 Jan 25 Purchased goods from Raj on credit 20,000 Jan 31 Paid rent by Cheque 5,000

Format of Single Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Amount(Rs) Date Particulars L.F. Amount(Rs) 2018 2018 Jan 01 To Capital A/c 2,00,000 Jan 02 By Furniture A/c 50,000 Jan 07 To Sales A/c 28,000 Jan 03 By Purchases A/c 30,000 Jan 15 To Sales A/c 10,000 Jan 05 By Freight A/c 500 Jan 10 By Ramesh’s A/c 20,000 Jan 20 By Wages A/c 10,000 Jan 31 By Balance c/d 1,27,500 2,38,000 2,38,000

Point of Knowledge:-

In the cash book only cash transaction are recorded. Credit transactions are not recorded.

The debit side is always greater than the credit as payments are never exceeds the cash available.

Question 2:

Prepare Simple Cash Book from the following transactions of Mr. Suresh, Delhi:

 2018 (Rs) 2018 (Rs) April 1 Mr. Suresh commenced business with cash 80,000 April 17 Paid for stationery 200 April 3 He bought goods 50,000 April 18 Paid for office furniture 3,000 April 5 Sold goods for Cash 40,000 April 21 Received from Mr. Kailash Chand 6,800 April 6 Received cash from Mr. Manohar 3,600 April 22 Paid for advertising 1,008 April 9 Paid into Bank 30,000 April 25 Purchased postage stamps 80 April 13 Paid cash Harikrishan 2,150 April 28 Paid Rent 1,120 April 30 Paid electricity charges 150

Format of Simple Cash Book on the basis of given transactions

 Books of Mr. Ram Gopal of DelhiCash Book Dr. Cr. Date Particulars L.F. Amount(Rs) Date Particulars L.F. Amount(Rs) 2018 2018 April 01 To Capital A/c 80,000 April 03 By Purchases A/c 50,000 April 05 To Sales A/c 40,000 April 09 By Bank A/c 30,000 April 06 To Manohar Lal’s A/c 3,600 April 13 By Hari Krishan’s A/c 2,150 April 21 To Kailash Chand’s A/c 6,800 April 17 By Stationery A/c 200 April 18 By Office Furniture A/c 3,000 April 22 By Advertising A/c 1,008 April 25 By Postage Stamps A/c 80 April 28 By Rent A/c 1,120 April 30 By Electricity Charges A/c 150 April 30 By Balance c/d 42,692 1,30,400 1,30,400

Point of Knowledge:-

The Balancing of cash book done like any other account. Debit Column(Receipt column) is always greater than the Credit Column(payment column).

Question 3:

With Goods and Services Tax (GST)
Prepare Simple Cash book of Sri Gopal of Amritsar from the following transactions:

 2018 (Rs) April 1 Sri Gopal commenced business introducing cash Rs 60,000 and Rs 1,50,000 by taking a loan from the Allahabad Bank. April 4 Purchased following assets  for business: Computer Rs 16,000; FurnitureRs 18,500 and Machinery Rs 32,000 plus CGST and SGST @ 6% each, paid by cheque April 6 Purchased goods of Rs 40,000 plus CGST and SGST @ 6% each from Bhushan, Amritsar, half of the value paid in cash. April 8 Paid wages for installation of Machinery 4,000 April 12 Computer repair charges Rs 1,900 paid along with CGST and SGST @ 6% each April 15 Paid wages 15,000 Purchased Postage Stamps 150 Paid for stationery of Rs 2,700 along with CGST and SGST @ 6% each April 19 Sold for cash half the goods purchased from Bhushan to Anil Krishna at a profit of25% and allowed him Trade Discount of 5%. Charged CGST and SGST @ 6% each April 24 Payment to carpenter for repairs to private property 350 April 26 Paid for medical expenses of Smt. Gopal 1,800 April 30 Paid for shop rent Rs 2,000 along with CGST and SGST @ 6% each.

Format of Simple Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Amount(Rs) Date Particulars L.F. Amount(Rs) 2018 2018 Apr 01 To Capital A/c 60,000 Apr 06 By Purchases A/c 20,000 Apr 19 To Sales A/c 23,750 Apr 06 By Input CGST A/c 1,200 Apr 19 To Output CGST A/c 1,425 Apr 06 By Input SGST A/c 1,200 Apr 19 To Output SGST A/c 1,425 Apr 08 By Machinery A/c 4,000 Apr 12 By Repairs A/c 1,900 Apr 12 By Input CGST A/c 114 Apr 12 By Input SGST A/c 114 Apr 15 By Wages A/c 15,000 Apr 15 By Postage A/c 150 Apr 15 By Stationery A/c 2,700 Apr 15 By Input CGST A/c 162 Apr 15 By Input SGST A/c 162 Apr 24 By Drawings A/c 350 Apr 26 By Drawings A/c 1,800 Apr 30 By Rent A/c 2,000 Apr 30 By Input CGST A/c 120 Apr 30 By Input SGST A/c 120 Apr 30 By Balance c/d 35,508 86,600 86,600

Working Note:-

 Goods Purchased from Bhushan = 40,000 Sold Half of Goods = 40,000×1/2 Cost Price = 20,000 Selling Price = Cost Price + Profit = 20,000 + 5000 = 25,000 Selling Price after discount = 25,000 - 5% = 23,750

Page No 10.41:

Question 4:

Prepare Simple Cash Book from the following transactions of Simran, Delhi:

 2018 (Rs) 2018 (Rs) March 1 Ms. Simran commenced business with cash 65,000 March 17 Paid for miscellaneous expenses 450 March 3 Bought goods for cash, CGST and SGST paid @ 6% cash 6,850 March 19 Received cash from Mr.Trilok Chand 4,850 March 4 Paid cash to Mr. Mohan 950 March 22 Purchased goods, CGST and SGST paid @ 6% each 2,500 March 6 Deposited in Bank 40,000 March 22 Paid salary 4,000 March 6 Paid for office furniture in cash, CGST and SGST paid @ 6% each 4,650 March 25 Paid rent, CGST and SGST paid @ 6% each 900 March 9 Sold goods for cash charged CGST and SGST @ 6% each 30,000 March 28 Paid electricity bill 350 March 12 Paid wages in cash 1,200 March 29 Paid for advertising, CGST and SGST paid @ 6% each 400 March 13 Paid for Stationery, CGST and SGST paid @ 6% each 400 March 31 Paid into bank 25,000 March 15 Sold goods for cash,  charged CGST and SGST @ 6% each 25,000

Format of Simple Cash Book on the basis of given transactions

 Books of Ganesh LalCash Book Dr. Cr. Date Particulars L.F. Amount(Rs) Date Particulars L.F. Amount(Rs) 2018 2018 Mar.01 To Capital A/c 65,000 Mar.03 By Purchases A/c 6,850 Mar.09 To Sales A/c 30,000 Mar.03 By Input CGST A/c 411 Mar.09 To Output CGST A/c 1,800 Mar.03 By Input SGST A/c 411 Mar.09 To Output CGST A/c 1,800 Mar.04 By Mohan’s A/c 950 Mar.15 To Sales A/c 25,000 Mar.06 By Bank A/c 40,000 Mar.15 To Output CGST A/c 1,500 Mar.06 By Office Furniture A/c 4,650 Mar.15 To Output CGST A/c 1,500 Mar.06 By Input CGST A/c 279 Mar.19 To Trilok Chand’s A/c 4,850 Mar.06 By Input SGST A/c 279 Mar.12 By Wages A/c 1,200 Mar.13 By Stationery A/c 400 Mar.13 By Input CGST A/c 24 Mar.13 By Input SGST A/c 24 Mar.17 By Miscellaneous Expenses A/c 450 Mar.22 By Purchases A/c 2,500 Mar.22 By Input CGST A/c 150 Mar.22 By Input SGST A/c 150 Mar.22 By Salary A/c 4,000 Mar.25 By Rent A/c 900 Mar.25 By Input CGST A/c 54 Mar.25 By Input SGST A/c 54 Mar.28 By Electricity Bill A/c 350 Mar.29 By Advertising A/c 400 Mar.29 By Input CGST A/c 24 Mar.29 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 1,31,450

Point of Knowledge:-

If a firm maintained Cash Book then it need not to make cash account separately.

Question 5:

From the following prepare Single Column Cash Book of Suresh, Chennai and post them into ledger accounts:

 2018 (Rs) April 1 Cash in Hand 6,400 April 3 Received Cash from Anupama 1,00,000 April 4 Paid into Bank 80,000 April 5 Received from Bhumika as commission Rs 6,000 plus CGST and SGST @ 6% each April 6 Paid Wages 30,000 April 7 Withdrawn from Bank for expenses 30,000 April 8 Purchased goods from Ashok on credit of Rs 10,000 plus CGST ans SGST @ 6% each April 9 Cash sales of Rs 10,000 charged CGST and SGST @ 6% each April 11 Drew Cash for domestic purposes 10,000 April 12 Purchased furniture for Rs 4,000 plus CGST and SGST @ 6% each April 13 Paid to Ruma 1,200 April 14 Paid to Ganguly Brothers for office fan Rs 1,500 plus CGST and SGST @ 6% each April 15 Paid own life insurance premium from office cash 800 April 16 Purchased stationery Rs 1,000 plus CGST and SGST @ 6% each April 17 Paid office expenses 500 April18 Remitted to Raman 900 April 19 Paid electricity charges 100 April 20 Received interest from Gupta &Co. 500 April 30 Deposited all cash into bank in excess of 2,000

Format of Single Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Amount(Rs) Date Particulars L.F. Amount(Rs) 2018 2018 Apr 01 To Balance b/d 6,400 Apr 04 By Bank A/c 80,000 Apr 03 To Anupama’s A/c 1,00,000 Apr 06 By Wages A/c 30,000 Apr 05 To Commission A/c 6,000 Apr 11 By Drawings A/c 10,000 Apr 05 To Output CGST A/c 360 Apr 12 By Furniture A/c 4,000 Apr 05 To Output SGST A/c 360 Apr 12 By Input CGST A/c 240 Apr 07 To Bank A/c 30,000 Apr 12 By Input SGST A/c 240 Apr 09 To Sales A/c 10,000 Apr 13 By Rama’s A/c 1,200 Apr 09 To Output CGST A/c 600 Apr 14 By Office Fan A/c 1,500 Apr 09 To Output SGST A/c 600 Apr 14 By Input CGST A/c 90 Apr 20 To Interest A/c 500 Apr 14 By Input SGST A/c 90 Apr 15 By Drawings A/c 800 Apr 16 By Stationery A/c 1,000 Apr 16 By Input CGST A/c 60 Apr 16 By Input SGST A/c 60 Apr 17 By Office Expenses A/c 500 Apr 18 By Raman’s A/c 900 Apr 19 By Electricity Charges A/c 100 Apr 30 By Bank A/c 22,040 Apr 30 By Balance c/d 2,000 1,54,820 1,54,820

Point of Knowledge:-

Cash book is maintained to record only cash transaction so, the credit purchases are not recorded in the cash book.

Question 6:

Without Goods and Services Tax (GST)
Record the following transactions in Double Columns Cash Book and balance the book on 31st March, 2018:

 2018 (Rs) March 1 Cash in Hand 12,750 Cash at Bank 72,400 March 4 Received from Asha cash Rs 1,200 and a cheque for Rs 3,200, allowed discount Rs 400 March 7 Paid salary to staff by cheque 25,600 March 9 Withdrawn cash from bank for office use 21,900 March 12 Interest paid by bank for office use 1,200 March 16 Purchased furniture in cash 16,500 March 21 Paid Mohan & Co. by cheque, discount received Rs 100 10,900 March 24 Proprietor withdrew from office cash for his personal use 11,600 March 29 Sold goods to Manoj for cash 14,800 March 31 Deposited office cash into bank 21,200

Format of Double Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 Mar 01 To Balance b/d 12,750 72,400 Mar 07 By Salary A/c 25,600 Mar 04 To Asha’s A/c 1,200 3,200 Mar 09 By Cash A/c C 21,900 Mar 09 To Bank A/c C 21,900 Mar 16 By Furniture A/c 16,500 Mar 12 To Bank Interest A/c 1,200 Mar 21 By Mohan & Co.A/c 10,900 Mar 29 To Sales A/c 14,800 Mar 24 By Drawings A/c 11,600 Mar 31 To Cash A/c C 21,200 Mar 31 By Bank A/c C 21,200 Mar 31 By Balance c/d 1,350 39,600 50,650 98,000 50,650 98,000

Point of Knowledge:-

(1)  Contra Entry is an entry which includes both Cash & Bank Account and it is recorded in both debit & credit side of the double column cash book. When a contra entry posted in cash book there is a reference column, the letter “C” is written this denotes that the entry is a contra entry.

(2)  This entry will not be posted to any ledger account.

Page No 10.42:

Question 7:

Enter the following transactions in the Double Column Cash Book of M/s. Gupta Store:

 2018 (Rs) June 1 Cash  in Hand Rs 800, Bank overdraft Rs 5,700 June 7 Received a cheque from Bharati, discount allowed Rs 150 3,250 June 9 Deposited the above cheque into Bank June 15 Cheque received from Panna Lal 1,200 June 20 Bharati's cheque returned dishonoured June 28 Panna Lal's cheque was endorsed to Kamal June 30 Income tax paid by cheque 150

Format of Double Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 Jun. 01 To Balance b/d 800 Jun.01 By Balance b/d 5,700 Jun. 09 To Bharti’s A/c 3,250 Jun.20 By Bharti’s A/c 3,250 Jun. 31 To Balance c/d 5,850 Jun.30 By Drawings A/c 150 Jun.30 By Balance c/d 800 800 9,100 800 9,100

Points of Knowledge:

(i)            Here Bank is overdraft so it will affect the credit side of Cash Book (By Balance b/d).

(ii)          Below is the Journal of Some tricky transactions

 Journal Date Particulars L.F. DebitAmount(Rs) Credit Amount(Rs) Jun.09 Bank A/c Dr. 3,250 To Bharti’s A/c 3,250 (Being cheque received from Bharti deposited into bank) Jun.15 Bharti’s A/c Dr. 3,250 To Bank A/c 3,250 (Being cheque received from Bharti got dishonoured) Jun.28 Panna Lal’s A/c Dr. 1,200 To Kamal’s A/c 1,200 (Being Cheque received from Panna Lal endorsed in favour of Kamal)

Question 8:

Prepare Two-column Cash Book of Bimal, Lucknow from the following transactions:

 2018 (Rs) 2018 (Rs) June 1 Cash Balance 5,000 June 21 Drawn from Bank 5,000 June 1 Bank Balance 17,500 June 29 Paid office salaries in cash 4,000 June 5 Cash received from sale of shares 5,000 June 30 Sold goods in cash for ₹ 8,000 plus CGST and SGST @ 6% each and banked the same June 6 Cheque received as advance against sale, paid into bank 50,000 June 30 Paid rent by cheque including CGST and SGST @ 6% each 1,120 June 7 Paid S. Bose by cheque 12,500 June 30 Paid into bank 7,500 Discount received 200 June 9 Paid wages in cash 3,000 June 20 Received a cheque from A. Mukherji and sent to bank 6,000

Format of Two Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 June 01 To Balance b/d 5,000 17,500 June 05 To Investment A/c 5,000 June 07 By S. Bose A/c 12,500 June 06 To Advances A/c 50,000 June 09 By Wages A/c 3,000 June 20 To A Mukherji’s A/c 6,000 June 21 By Cash A/c C 5,000 June 21 To Bank A/c C 5,000 June 29 By Office Salaries A/c 4,000 June 30 To Sales A/c 8,000 June 30 By Rent A/c 1,000 June 30 To Output CGST A/c 480 June 30 By Input CGST A/c 60 June 30 To Output SGST A/c 480 June 30 By Input SGST A/c 60 June 30 To Cash A/c C 7,500 June 30 By Bank A/c C 7,500 June 30 By Balance c/d 500 71,340 15,000 89,960 6,500 89,960

Point of knowledge:-

(i)            When a cheque is received and deposited into the bank on the same day the amount of the cheque is entered in the bank column on debit side.

(ii)          When a cheque is received and does not represent on the same day, the amount of the cheque is entered in the cash column.

Page No 10.42:

Question 9:

Prepare Two-column Cash Book from the following transactions of Mani, Kochi;

 2018 March 1 Cash in Hand Rs 15,000; Cash at Bank Rs 5,000 March 3 Purchased goods for cash Rs 6,720 including CGST and SGST @ 6% p.a; received discount of Rs 220 March 5 Deposited into bank Rs 5,000 March 7 Cash sales Rs 10,000 plus CGST and SGST @ 6% each March 10 Cash withdrawn from Bank for Office use Rs 2,000 March 15 Received three months post dated cheque of Rs 20,000 from Raj and deposited in the bank on the same day, discounted from bank paying discounting charges Rs 750 March 18 Received cheque from Deepak for Rs 5,000 (not banked), allowed discount Rs 200 March 20 Cheque received from Deepak deposited in Bank March 22 Paid to Chandra by cheque Rs 2,500; received discount Rs 100 March 25 Withdrew from bank for personal use Rs 1,000 March 28 Sold goods on credit to Ashok Mitra, Kolkata Rs 10,000, charged IGST @ 12% March 30 Purchased goods on credit from Chander, Delhi Rs 20,000, paid IGST @ 12% March 31 Received cheque from Ashok Mitra Rs 5,000 and deposited in bank, allowed cash discount Rs 200

Format of Two Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 Mar. 01 To Balance b/d 15,000 5,000 Mar. 03 By Purchases A/c 5,780 Mar.05 To Cash A/c C 5,000 Mar. 03 By Input CGST A/c 360 Mar. 07 To Sales A/c 10,000 Mar. 03 By Input SGST A/c 360 Mar. 07 To Output CGST A/c 600 Mar. 05 By Bank A/c C 5,000 Mar. 07 To Output SGST A/c 600 Mar. 10 By Cash A/c C 2,000 Mar. 10 To Bank A/c C 2,000 Mar. 22 By Chandra’s A/c 2,500 Mar. 15 To Raj’s A/c 19,250 Mar. 25 By Drawings A/c 1,000 (Cheques-in-hand) Mar. 31 By Balance c/d 16,700 33,750 Mar. 20 To Cheques in hand 5,000 Mar. 31 To Ashok Mitra’s A/c 5,000 28,200 39,250 28,200 39,250

Point of Knowledge:

1.    On March 15th, cheque received from Raj post dated 3 months, being deposited in the bank on the same day and bank deducted discounting charges Rs. 750

Rs. 20,000 – Rs. 750 = Rs. 19,250

Note:

The closing balances of Cash Column and Bank Column are 16,700 and 33,750 respectively. But according to Text Book the closing balances are 14,700 and 33,750 respectively which is different from our calculation.

 Journal Date Particulars L.F. DebitAmount(Rs) Credit Amount(Rs) Mar. 18 Cheques-in-hand A/c Dr. 5,000 To Deepak’s A/c 5,000 (Being Cheque received from Deepak but not deposited the same day) Mar. 30 Ashok Mitra’s A/c    To Sales A/c    To Output IGST A/c (Being material sold on credit and @12% IGST applied) Purchases A/c Input IGST A/c    To Chander’s A/c (Being material bought and @12% IGST applied) Dr. Dr. Dr. 11,200 20,000 2,400 10,000 1,200 22,400

Page No 10.43:

Question 10:

Prepare Two-column Cash Book of Vinod, Delhi from the following transactions:

 2017 (Rs) Oct. 1 Cash in Hand 25,000 Oct. 1 Cash at Bank 75,000 Oct. 7 Bought goods for Rs 15,000 plus IGST @ 12% against cheque Oct. 8 Bought goods for Rs 5,000 plus CGST and SGST @ 6% each Oct. 10 Honoured our own acceptance by cheque 5,000 Oct. 14 Paid petty expenses 150 Oct. 18 Ramesh who owed Rs 5,000 became bankrupt and paid us 50 paise in a rupee Oct. 20 Received cash from Manohar 7,500 Allowed discount 250 Oct. 23 Withdrew from bank 4,000 Oct. 24 Paid to Ghanshyamdas & Co. 3,000 Received discount 100 Oct. 25 Withdrew from bank for personal expenses 3,000 Oct. 27 Sold goods for Rs 11,000 plus CGST and SGST @ 6% against cash Oct. 28 Received cheque for goods sold for Rs 9,000 plus CGST and SGST @ 6% each Oct. 29 Received repayment of a loan of Rs 5,000 and deposited Rs 3,000 out of it

Format of Two Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 Oct 01 To Balance b/d 25,000 75,000 Oct 01 By Purchases A/c 15,000 Oct 18 To Ramesh’s A/c 2,500 Oct 01 By Input IGST A/c 1,800 Oct 20 To Manohar’s A/c 7,500 Oct 08 By Purchases A/c 5,000 Oct 23 To Bank A/c C 4,000 Oct 08 By Input CGST A/c 300 Oct 27 To Sales A/c 11,000 Oct 08 By Input SGST A/c 300 Oct 27 To Output CGST A/c 660 Oct 10 By Bills Payable A/c 5,000 Oct 27 To Output SGST A/c 660 Oct 14 By Petty Expenses A/c 150 Oct 28 To Sales A/c 9,000 Oct 23 By Cash A/c 4,000 Oct 28 To Output CGST A/c 540 Oct 24 By Ghanshyamdas & Co. A/c 3,000 Oct 28 To Output SGST A/c 540 Oct 25 By Drawings A/c 3,000 Oct 29 To Loan A/c 2,000 3,000 Oct 31 By Balance c/d 44,570 59,280 53,320 88,080 53,320 88,080

Point of Knowledge:-

(i)            The contra entry is done when the cash is withdrawn for business use. If cash is withdrawn for personal use, it will be entered in the bank column of credit side of the cash book.

Page No 10.43:

Question 11:

Enter the following transactions in the Cash Book of Chandrika of Chandigarh:

 2018 (Rs) Jan 1 Chandrika commences business with cash 1,00,000 Jan 3 She opened a Bank Current Account with her Savings Account cheque 19,00,000 Jan 4 She receives cheque from Kirti & Co. on account 60,000 Jan 7 She pays into Bank Kirti & Co.'s cheque−- 60,000 Jan 10 She advanced Ratan & Co. by cheque 35,000 Jan 12 Tripathi & Co. pays into her Bank A/c 47,500 Jan 15 She receives cheque from Warsi and allows him discount Rs 3,500 45,000 Jan 20 She receives cash Rs 7,500 and cheque Rs 10,000 from Kalyan against credit balance Jan 25 She pays into Bank, including cheques received on 15th and 20th January 1,00,000 Jan 27 She pays by cheque for purchases of Rs 27,500 plus CGST and SGST @ 6% each Jan 28 Cheque received from Warsi was dishonoured Jan 30 She pays sundry expenses in cash 50 Jan 30 She pays John & Co. in cash and is allowed discount Rs 3,500 37,500 Jan 31 She pays office rent Rs 20,000 plus CGST and SGST @ 6% each by cheque Jan 31 She draws a cheque for office use 40,000 Jan 31 She pays staff salaries by cheque 30,000 Jan 31 She pays cash for stationery Rs 2,500 plus CGST and SGST @ 6% each Jan 31 She purchases goods for cash Rs 12,500 plus CGST and SGST @ 6% each Jan 31 She pays Jagpal by cheque for commission Rs 30,000 plus CGST and SGST @ 6% each Jan 31 She receives cheque for commission of Rs 50,000 plus CGST and SGST @ 6% each from Raghubir & Co. and pays the same into bank Jan 31 Cash sales Rs 45,000 plus CGST and SGST @ 6% each

Format of Two Column Cash Book on the basis of given transactions

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 Jan 01 To Capital A/c 1,00,000 19,00,000 Jan 10 By Loan A/c 35,000 Jan 07 To Cheques in Hand A/c 60,000 Jan 25 By Bank A/c C 45,000 Jan 12 To Tripathi & Co. A/c 47,500 Jan 27 By Purchases A/c 27,500 Jan 20 To Kalyan’s A/c 7,500 Jan 27 By Input CGST A/c 1,650 Jan 25 To Cheques in Hand A/c 55,000 Jan 27 By Input SGST A/c 1,650 Jan 25 To Cash A/c C 45,000 Jan 28 By Warsi’s A/c 45,000 Jan 31 To Bank A/c C 40,000 Jan 30 By Sundry Expenses A/c 50 Jan 31 To Commission A/c 50,000 Jan 30 By John & Co A/c 37,500 Jan 31 To Output CGST A/c 3,000 Jan 31 By Office Rent A/c 20,000 Jan 31 To Output SGST A/c 3,000 Jan 31 By Input CGST A/c 1,200 Jan 31 To Sales A/c 45,000 Jan 31 By Input SGST A/c 1,200 Jan 31 To Output CGST A/c 2,700 Jan 31 By Cash A/c 40,000 Jan 31 To Output SGST A/c 2,700 Jan 31 By Salaries A/c 30,000 Jan 31 By Stationery A/c 2,500 Jan 31 By Input CGST A/c 150 Jan 31 By Input SGST A/c 150 Jan 31 By Purchases A/c 12,500 Jan 31 By Input CGST A/c 750 Jan 31 By Input SGST A/c 750 Jan 31 By Commission A/c 30,000 Jan 31 By Input CGST A/c 1,800 Jan 31 By Input SGST A/c 1,800 Jan 31 By Balance c/d 98,550 19,26,700 1,97,900 21,63,500 1,97,900 21,63,500

Point of Knowledge:-

(i)            Below is the Journal of Some tricky transactions

 Journal Date Particulars L.F. DebitAmount(Rs) Credit Amount(Rs) Jan.15 Cheque-in-Hand A/c Dr. 45000 Discount Allowed A/c Dr. 3500 To Warsi’s A/c 48500 (Being cheque received from Warsi, not deposited into Bank & Discount allowed) Jan.20 Cheque-in-Hand A/c Dr. 10,000 To Kalyan’s A/c 10,000 (Being cheque received from Kalyan not deposited into bank) Jun.28 Warsi’s A/c Dr. 1,200 To Discount Allowed A/c 1,200 (Being Cheque is dishonoured and discount is cancelled) Jan.30 John & Co. A/c Dr. 3,500 To Discount received A/c 3,500 (Being Discount received from John & Co.)

Page No 10.44:

Question 12:

Enter the following transactions in Two-column Cash Book of Reema, Chandigarh and find out cash and bank balances:

 2018 (Rs) April 1 Cash balance Rs 2,000, bank balance Rs 24,500 April 2 Cash sales Rs 60,000 plus CGST and SGST @ 6% each April 5 Deposited in Bank 50,000 April 7 Issued cheque to Sohan 10,000 April 9 Sold goods for cash Rs 10,000 plus CGST and SGST @ 6% each April 12 Received a cheque from National Insurance Co. Ltd. against claim lodged last year 19,800 April 14 Sold goods to Niraj of Rs 25,000 plus CGST and SGST @ 6% each, received cash Rs 10,000 and balance by cheque. Allowed him discount ₹500 April 16 Purchased furniture for Rs 10,000 plus CGST and SGST @ 6% each, paid for furniture by cheque April 18 Sold old furniture for Rs 10,000 plus CGST and SGST @ 6% each and received cash April 20 Paid into bank cheque of Niraj and cash 2,500 April 22 Paid to Suman by cheque 2,500 April 26 Suman's cheque returned on technical ground and paid cash for equal amount April 28 Bank charged its commission of Rs 300 plus CGST and SGST @ 6% each April 29 Bank paid insurance premium as per standing instructions 2,500 April 30 Nigam paid into bank directly, intimation received on the same day 5,000

Format of Two Column Cash Book on the basis of given transactions

In the books of Reema, Chandigarh

 Cash Book Dr. Cr. Date Particulars L.F. Cash(Rs) Bank(Rs) Date Particulars L.F. Cash(Rs) Bank(Rs) 2018 2018 Apr 01 To Balance b/d 2,000 24,500 Apr 05 By Bank A/c C 50,000 Apr 02 To Sales A/c 60,000 Apr 07 By Sohan’s A/c 10,000 Apr 02 To Output CGST A/c 3,600 Apr 16 By Furniture A/c 10,000 Apr 02 To Output SGST A/c 3,600 Apr 16 By Input CGST A/c 600 Apr 05 To Cash A/c C 50,000 Apr 16 By Input SGST A/c 600 Apr 09 To Sales A/c 10,000 Apr 20 By Bank A/c C 2,500 Apr 09 To Output CGST A/c 600 Apr 22 By Suman’s A/c 2,500 Apr 09 To Output SGST A/c 600 Apr 26 By Suman’s A/c 2,500 Apr 12 To National Insurance Co. Ltd. 19,800 Apr 28 By Commission A/c 300 Apr 14 To Sales A/c 7,000 Apr 28 By Input CGST A/c 18 Apr 14 To Output CGST A/c 1,500 Apr 28 By Input SGST A/c 18 Apr 14 To Output SGST A/c 1,500 Apr 29 By Insurance Premium A/c 2,500 Apr 18 To Old Furniture A/c 10,000 Apr 30 By Balance c/d 46,600 95,264 Apr 18 To Output CGST A/c 600 Apr 18 To Output SGST A/c 600 Apr 20 To Cheques in Hand A/c 17,500 Apr 20 To Cash A/c C 2,500 Apr 26 To Suman’s A/c 2,500 Apr 30 To Nigam’s A/c 5,000 1,01,600 1,21,800 1,01,600 1,21,800

Point of Knowledge:-

(i)            Below is the Journal of Some tricky transactions

 Journal Date Particulars L.F. DebitAmount(Rs) Credit Amount(Rs) Apr.14 Niraj’s A/c Dr. 28,000 To Sales A/c 25000 To Output CGST A/c 1500 To Output SGST A/c 1500 (Being goods sold to Neeraj & GST Charged) Apr.14 Cheque-in-hand A/c Dr. 17,500 Discount Allowed A/c Dr. 500 To Niraj’s A/c 18,000 (Being received cheque & discount allowed)

Page No 10.44:

Question 13:

Write the following transactions in the Cash Book of Premium Stores, Kolkata (Proprietor Amrit Kumar):

 2018 (Rs) Jan 1 Commenced business with cash 50,000 Jan 2 Opened Bank Account and deposited cash in bank 20,000 Purchased goods in cash of Rs 5,000 plus CGST and SGST @ 6% each 5,000 Jan 4 Paid wages 500 Jan 6 Cash sales of Rs 2,000 plus CGST and SGST @ 6% each 2,000 Purchased goods for Rs 10,000 plus CGST and SGST @ 6% each for cash Jan 10 Sold goods of Rs 4,000 plus CGST and SGST @ 6% each and payment received by cheque which is deposited in Bank, allowed cash discount of Rs 400 Received from Amit 5,900 Allowed him discount 100 Jan 15 Paid to Bhaskar 2,800 Received discount 200 Jan 18 Purchased goods from Kanchan, Delhi of Rs 10,000 plus IGST @ 12%