Enter the following transaction in Simple cash book for December 2017:

01. Cash in hand 7,750

06. Paid to Sonu 45  

08. Purchased goods 600  

15. Received cash from Parkash 960 

20. Cash sales 500  

25. Paid to S.Kumar 1,200  

30. Paid rent 600 

Solution : 

 

Cash Book 

Dr.   Cr. 

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
2017				2017
Dec.01	Balance b/d		7,750	Dec.06	Sonu		45
Dec.15	Prakash		960	Dec.08	Purchases		600
Dec.20	Sales		500	Dec.25	S. Kumar		1,200
				Dec.30	Rent		600
				Dec.31	Balance c/d		6,765
			9,210				9,210

 

Explanation:  

Transaction on December 1, 2017: 

Particulars: Balance brought forward 

Debit (Dr.): Increase in cash balance (7,750) 

 

Transaction on December 6, 2017: 

Particulars: Paid to Sonu 

Credit (Cr.): Decrease in cash balance (45) 

 

Transaction on December 8, 2017: 

Particulars: Purchased goods 

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

 

Transaction on December 15, 2017: 

Particulars: Received cash from Parkash 

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

 

Transaction on December 20, 2017: 

Particulars: Cash sales 

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

 

Transaction on December 25, 2017: 

Particulars: Paid to S. Kumar 

Credit (Cr.): Decrease in cash balance (1,200) 

 

Transaction on December 30, 2017: 

Particulars: Paid rent 

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

 

Transaction on December 31, 2017: 

Particulars: Balance carried forward 

Credit (Cr.): Increase in cash balance (6,765) 

 

Closing Balance: 

The closing balance on December 31, 2017, is calculated by subtracting the total credit transactions from the total debit transactions: 

7,750(Opening)−45−600+960+500−1,200−600+6,765(Closing)=6,765 

The correct closing balance is ₹6,765