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 Dinker and received a cheque 

20,000 

10 

Paid to Sushmita cash 

20,000 

14 

Cheque received on December 06, 2010, 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 

Solution:  

Cash Book 

Dr. 

 

 

 

 

 

 

 

 

Cr. 

Date 

Particulars 

LF 

Cash 

Bank 

Date 

Particulars 

LF 

Cash 

Bank 

2016 

 

 

 

 

2016 

 

 

 

 

Dec.01 

Capital 

 

1,20,000 

 

Dec. 03 

Bank 

C 

50,000 

 

Dec.03 

Cash 

C 

 

50,000 

Dec. 10 

Sushmita 

 

20,000 

 

Dec.06 

Dinker 

 

20,000 

 

Dec. 14 

Bank 

C 

20,000 

 

Dec.14 

Cash 

C 

 

20,000 

Dec. 20 

Cartage 

 

500 

 

Dec.22 

Rani 

 

12,000 

 

Dec. 30 

Drawings 

C 

2,000 

 

Dec.27 

Commission 

 

5,000 

 

Dec. 31 

Balance c/d 

 

64,500 

70,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,57,000 

70,000 

 

 

 

1,57,000 

70,000 

 

 

 

 

 

 

 

 

 

 

 


Explanation:  

1. December 03, 2010: Cash paid into bank 

  • Particulars: Cash paid into the bank. 

  • Contra Entry Explanation: 

  • Credit (C): Decrease in the cash account (₹50,000 is credited to the cash account). 

  • Debit (D): Increase in the bank account (₹50,000 is debited to the bank account). 

  • Purpose: Reflects the movement of cash from the cash account to the bank account. 

2. December 06, 2010: Cheque received and deposited into bank 

  • Particulars: Cheque received on December 06, 2010, deposited into the bank. 

  • Contra Entry Explanation: 

  • Credit (C): No impact on the cash account (since the cheque is received and not paid in cash). 

  • Debit (D): Increase in the bank account (reflects the amount of the cheque deposited into the bank). 

  • Purpose: Illustrates the banking transaction involving a cheque. 

 

 
 

 

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