Enter the following transactions in a simple cash book for December 2016:

01 Cash in hand 12,000  

05 Cash received from Bhanu 4,000

07 Rent Paid 2,000  

10 Purchased goods Murari for cash 6,000  

15 Sold goods for cash 9,000  

18 Purchase stationery 300  

22 Cash paid to Rahul on account 2,000  

28 Paid salary 1,000 30 Paid rent 500 

Solution:

 

Cash Book 

Dr.							Cr.
Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
2010				2010
Dec.01	Balance b/d		12,000	Dec.07	Rent		2,000
Dec.05	Bhanu		4,000	Dec.10	Purchases		6,000
Dec.15	Sales		9,000	Dec.18	Stationery		300
				Dec.22	Rahul		2,000
				Dec.28	Salaries		1,000
				Dec.30	Rent		500
				Dec.31	Balance c/d		13,200
			25,000				25,000

 

Explanation:  
Transaction on December 1, 2016: 

Particulars: Balance brought forward 

Debit (Dr.): Increase in cash balance (12,000) 

 

Transaction on December 5, 2016: 

Particulars: Cash received from Bhanu 

Credit (Cr.): Increase in cash balance (4,000) 

 

Transaction on December 7, 2016: 

Particulars: Rent Paid 

Debit (Dr.): Decrease in cash balance (2,000) 

 

Transaction on December 10, 2016: 

Particulars: Purchased goods from Murari for cash 

Debit (Dr.): Decrease in cash balance (6,000) 

 

Transaction on December 15, 2016: 

Particulars: Sold goods for cash 

Credit (Cr.): Increase in cash balance (9,000) 

 

Transaction on December 18, 2016: 

Particulars: Purchase stationery 

Debit (Dr.): Decrease in cash balance (300) 

 

Transaction on December 22, 2016: 

Particulars: Cash paid to Rahul on account 

Debit (Dr.): Decrease in cash balance (2,000) 

 

Transaction on December 28, 2016: 

Particulars: Paid salary 

Debit (Dr.): Decrease in cash balance (1,000) 

 

Transaction on December 30, 2016: 

Particulars: Paid rent 

Debit (Dr.): Decrease in cash balance (500) 

 

Transaction on December 31, 2016: 

Particulars: Balance carried forward 

Credit (Cr.): Increase in cash balance (13,200) 

 

Correct Closing Balance Calculation: 

The closing balance on December 31, 2016, is calculated by subtracting the total debit transactions from the total credit transactions: 

12,000(Opening)+4,000+9,000−2,000−6,000−300−2,000−1,000−500=13,200 

The correct closing balance is ₹13,200.