Accounting ProcessQuestion 4676 of 84
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From the following transactions prepare the Cash Book with cash and discount columns: Aug. 2016 Particulars Amount 1 Opening cash balance 2500 3 Received from D & Co. in full settlement of Rs. 1,400 1,350 4 Received for cash sales 1250 5 Paid to Rajesh & Co Rs. 775 in full settlement of his account for 800 7 Purchased office furniture 670 13 Paid for postal stamps 25 15 Paid for office rent for month of July, 2016 125 17 Used office cash for meeting personal expenses 150 19 $old goods on credit to Mr. Faithful 1700 20 Paid to Rajnikant in full settlement his account for Rs. 700 670 20 Deposited in the Bank all cash in excess of 1200

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Detailed Solution & Explanation

Double Column Cash Book Dr. Cr. Date Particulars LF Dis Cash Date Particulars LF Dis Cash 1/8/16 To opening b/f 2500 5/8/16 By Rajesh & Co. 25 775 3/8/16 To D & Co. A/c 50 1350 7/8/16 By Furniture A/c 670 4/8/16 To Sales A/c 1250 13/8/16 By Postage Exp. A/c 25 15/8/16 By Rent Payable A/c 125 17/8/16 By Drawings A/c 150 20/8/16 By Rajnikant A/c 30 670 20/8/16 By Bank A/c 1485 20/8/16 By Balance C/f 1200 50 5100 55 5100  It is assumed that in July month provision for rent payable was made, hence now on payment rent payable account is debited.  Credit sale of 19.08.16 will be entered in sales book or in Journal, if sales book is not maintained.

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