Record the following transaction in simple cash book for November 2016:

01. Cash in hand 12,500

04. Cash paid to Hari 600  

07. Purchased goods 800  

12. Cash received from Amit 1,960

 

16. Sold goods for cash 800  

20. Paid to Manish 590  

25. Paid cartage 100  

31. Paid salary 1,000 

Solution:  

Cash Book  

Dr.							Cr.
Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
2010				2010
Nov.01	Balance b/d		12,500	Nov.04	Hari		600
Nov.12	Amit		1,960	Nov.07	Purchases		800
Nov.16	Sales		800	Nov.20	Manish		590
				Nov.25	Cartage		100
				Nov.30	Salaries		1,000
				Nov.30	Balance c/d		12,170
			15,260				15,260

 

Explanation:  

Transaction on November 1, 2016: 

Particulars: Balance brought forward 

Debit (Dr.): Increase in cash balance (12,500) 

 

Transaction on November 4, 2016: 

Particulars: Cash paid to Hari 

Credit (Cr.): Decrease in cash balance (600) 

 

Transaction on November 7, 2016: 

Particulars: Purchased goods 

Credit (Cr.): Decrease in cash balance (800) 

 

Transaction on November 12, 2016: 

Particulars: Cash received from Amit 

Debit (Dr.): Increase in cash balance (1,960) 

 

Transaction on November 16, 2016: 

Particulars: Sold goods for cash 

Credit (Cr.): Decrease in cash balance (800) 

 

Transaction on November 20, 2016: 

Particulars: Paid to Manish 

Credit (Cr.): Decrease in cash balance (590) 

\ 

Transaction on November 25, 2016: 

Particulars: Paid cartage 

Credit (Cr.): Decrease in cash balance (100) 

 

Transaction on November 31, 2016: 

Particulars: Paid salary 

Credit (Cr.): Decrease in cash balance (1,000) 

 

Transaction on November 30, 2016: 

Particulars: Balance carried forward 

Debit (Dr.): Increase in cash balance (12,750) 

 

Closing Balance: 

The closing balance on November 30, 2016, is calculated by subtracting the total credit transactions from the total debit transactions: 

12,500(Opening)−600−800+1,960−800−590−100−1,000+12,750(Closing)=12,170