Q.2 Prepare two column Cash Book from the following transaction for the year July 2018.

Prepare two column Cash Book from the following transaction for the year July 2018

01. Cash in hand Rs.17,500

01. Cash in Bank Rs.5,000
03. Purchased goods for cash Rs.3,000
05. Received cheque from Arun Rs.10,000
08. Sold goods for cash Rs.8,000
10. Arun`s cheque deposited into bank Rs.10,000
12. Purchased goods and paid by cheque Rs.20,000
15. Paid establishment expense through bank Rs.1,000
18. Cash Sales Rs.7,000
20. Deposited into Bank Rs.10,000
24. Paid General expense Rs.500
27. Received commission by Cross cheque Rs.6,000
29. Paid Rent Rs.2,000
30. Withdrew cash for personal use Rs.1,200
31. Wages Paid Rs.6,000

Solution:

Date	Receipts			R	LF	Cash			Bank		Date		Payments				V		LF	Cash				Bank
July20181	To Balance b/d   [Being Cash in hand and Cash at Bank]					17,500			5,000		July20183		By Purchase A/c  [Being Goods Purchased]							3,000
5	To Arjun A/c  [Being Cheque received]								10,000		12		By Purchase A/c  [Being Goods purchased]											20,000
8	To Sales A/c  [Being goods Sold]					8,000					15		By Establishment Expense A/c  [Being paid establishment expense]											1,000
18	To Sales A/c  [Being Cash sales]					7,000					20		By Bank A/c  [Being Cash deposited in bank]				-		C	10,000

20	To Cash A/c  [Being Deposited cash in bank]			-	C				10,000		24		By General Expense A/c  [Being Paid general exp]							500
27	To Commission received A/c [Being commission received]								6,000		29		By Rent A/c  [Being Paid Rent]							2,000
											30		By Drawings A/c  [Being Cash withdrew]							1,200
											31		By Wages A/c  [Being wages paid]							6,000
											31		By Balance c/d							9,800				10,000
						32,500			31,000											32,500				31,000
Aug1	To Balance b/d					9,800			10,000
						42500														12700