NCERT Solutions

Explain the need for drawing up the special purpose books.

What is cash book? Explain the types of cash book.

What is contra entry? How can you deal this entry while preparing double column cash book?

What is petty cash book? Write the advantages of petty cash book?

Describe the advantages of sub-dividing the Journal.

What do you understand by balancing of account?

Enter the following transactions in a simple cash book for December 2016: ₹ 01 Cash in hand 12,000 05 Cash received from Bhanu 4,000 07 Rent Paid 2,000 10 Purchased goods Murari for cash 6,000 15 Sold goods for cash 9,000 18 Purchase stationery 300 22 Cash paid to Rahul on account 2,000 28 Paid salary 1,000 30 Paid rent 500

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

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

Record the following transactions in a bank column cash book for December 2016: ₹ 01 Started business with cash 80,000 04 Deposited in bank 50,000 10 Received cash from Rahul 1,000 15 Bought goods for cash 8,000 22 Bought goods by cheque 10,000 25 Paid to Shyam by cash 20,000 30 Drew from Bank for office use 2,000 31 Rent paid by cheque 1,000

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, 2016 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

Enter the following transactions in double column cash book of M/s Ambica Traders for July 2017: 01 Commenced business with cash 50,000 03 Opened bank account with ICICI 30,000 05 Purchased goods for cash 10,000 10 Purchased office machine for cash 5,000 15 Sales goods on credit from Rohan and received chaeque 7,000 18 Cash sales 8,000 20 Rohan's cheque deposited into bank 22 Paid cartage by cheque 500 25 Cash withdrawn for personal use 2,000 30 Paid rent by cheque 1,000

Prepare double column cash book from the following information for July 2017: ₹ 01 Cash In hand 7,500 Bank overdraft 3,500 03 Paid wages 200 05 Cash sales 7,000 10 Cash deposited into bank 4,000 15 Goods purchased and paid by cheque 2,000 20 Paid rent 500 25 Drew from bank for personal use 400 30 Salary paid 1,000

Enter the following transaction in a double column cash book of M/s.Mohit Traders for January 2017: ₹ 01 Cash in hand 2,300 Bank overdraft 5,000 03 Goods purchased for cash 1,200 05 Paid wages 200 10 Cash sales 8,000 15 Deposited into bank 6,000 22 Sold goods for cheque which was deposited into bank same day 2,000 25 Paid rent by cheque 1,200 28 Drew from bank for personal use 1,000 31 Bought goods by cheque 1,000

Prepare double column cash book from the following transactions for the year August 2017: ₹ 01 Cash in hand 17,500 Cash at bank 5,000 03 Purchased goods for cash 3,000 05 Received cheque from Jasmeet 10,000 08 Sold goods for cash 7,000 10 Jasmeet's cheque deposited into bank 12 Purchased goods and paid by cheque 20,000 15 Paid establishment expenses through bank 1,000 18 Cash sales 7,000 20 Deposited into bank 10,000 24 Paid trade expenses 500 27 Received commission by cheque 6,000 29 Paid Rent 2,000 30 Withdrew cash for personal use 1,200 31 Salary paid 6,000

M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹1,354 and balance in bank current account ₹7,560. He had the following transaction in the month of July 2017: ₹ 03 Cash sales 2,300 05 Purchased goods, paid by cheque 6,000 08 Cash sales 10,000 12 Paid trade expenses 700 15 Sales goods, received cheque (deposited same day) 20,000 18 Purchased motor car paid by cheque 15,000 20 Cheque received from Manisha (deposited same day) 10,000 22 Cash Sales 7,000 25 Manisha's cheque returned dishonoured 28 Paid Rent 2,000 29 Paid telephone expenses by cheque 500 31 Cash withdrawn for personal use 2,000

Prepare petty cash book from the following transactions. The imprest amount is ₹2,000. 2017 ..... ₹ January 01 Paid cartage ..... 50 02 STD charges ..... 40 02 Bus fare ..... 20 03 Postage ..... 30 04 Refreshment for employees ..... 80 06 Courier charges ..... 30 08 Refreshment of customer ..... 50 10 Cartage ..... 35 15 Taxi fare to manager ..... 70 18 Stationery ..... 65 20 Bus fare ..... 10 22 Fax charges ..... 30 25 Telegrams charges ..... 35 27 Postage stamps ..... 200 29 Repair on furniture ..... 105 30 Laundry expenses ..... 115 31 Miscellaneous expenses ..... 100

Record the following transactions during the week ending Dec.30,2014with a weekly imprest ₹ 500 . 2017 ..... ₹ January 24 Stationery ..... 100 25 Bus fare ..... 12 25 Cartage ..... 40 26 Taxi fare ..... 80 27 Wages to casual labour ..... 90 29 Postage ..... 80

Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017: 01 Bought from Rahul Traders as per invoice no. 20041 40 Registers @ ₹60 each 80 Gel Pens @ ₹ 15 each 50 note books @ ₹20 each Trade discount 10%. 15 Bought from Global Stationers as per invoice no. 1132 40 Ink Pads @ ₹8 each 50 Files @ ₹ 10 each 20 Color Books @ ₹ 20 each Trade Discount 5% 23 Purchased from Lamba Furniture as per invoice no. 3201 2 Chairs @ 600 per chair 1 Table @ 1000 per table 25 Bought from Mumbai Traders as per invoice no. 1111 10 Paper Rim @ ₹ 100 per rim 400 drawing Sheets @ ₹3 each 20 Packets waters colour @ ₹40 per packet

Enter the following transactions in sales (journal) book of M/s.Bansal electronics: 2014 September 01 Sold to Amit Traders as per bill no. 4321 20 Pocket Radio @ 70 per Radio 2, T.V. set, B&W.(6") @ 800 Per T.V. 10. Sold to Arun Electronics as per bill no. 4351 5 T.V. sets (20") B&W @ ₹3,000 per T.V. 2 T.V. sets (21") Colour @ ₹ 4,800 per T.V. 22 Sold to Handa Electronics as per bill no. 4,399 10 Tape recorders @ ₹ 600 each 5 Walkman @ ₹ 300 each 28 Sold to Harish Trader as per bill no. 4430 10 Mixer Juicer Grinder @ ₹ 800 each.

Prepare a purchases return (journal) book from the following transactions for April 2017. April 05 Returned goods to M/s Kartik Traders 1,200 10 Goods returned to Sahil Pvt. Ltd. 2,500 17 Goods returned to M/s Kohinoor Traders. for list price ₹2,000 less 10% trade discount. 28 Return outwards to M/s Handa Traders 550

Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for July 2017: 2017 July 04 M/s Gupta Traders returned the goods 1,500 10 Goods returned from M/s Harish Traders 800 18 M/s Rahul Traders returned the goods not as per specifications 1,200 28 Goods returned from Sushil Traders 1,000

Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2017: 2017 ₹ February 01 Goods sold to Sachin 5,000 04 Purchase from Kushal Traders 2,480 06 Sold goods to Manish Traders 2,100 07 Sachin returned goods 600 08 Returns to Kushal Traders 280 10 Sold to Mukesh 3,300 14 Purchased from Kunal Traders 5,200 15 Furniture purchased from Tarun 3,200 17 Bought of Naresh 4,060 20 Return to Kunal Traders 200 22 Return inwards from Mukesh 250 24 Purchased goods from Kirit & Co. for list price of 5,700 less 10% trade discount 25 Sold to Shri Chand goods 6600 less 5% trade discount 26 Sold to Ramesh Brothers 4,000 28 Return outwards to Kirit and Co. 1,000 less 10% trade discount 28 Ramesh Brothers returned goods ₹ 500.

The following balances of ledger of M/s Marble Traders on April 01, 2017 2017 ₹ April Cash in hand 6,000 Cash at bank 12,000 Bills receivable 7,000 Ramesh (Cr.) 3,000 Stock (Goods) 5,400 Bills payable 2,000 Rahul (Dr.) 9,700 Himanshu (Dr.) 10,000 Transactions during the month were: April ..... ₹ 01 Goods sold to Manish ..... 3,000 02 Purchased goods from Ramesh ..... 8,000 03 Received cash from Rahul in full settlement ..... 9,200 05 Cash received from Himanshu on account ..... 4,000 06 paid to Remesh by cheque ..... 6,000. 08 Rent paid by cheque ..... 1,200 10 Cash received from manish ..... 3,000 12 Cash sales ..... 6,000 14 Goods returned to Ramesh ..... 1,000 15 Cash paid to Ramesh in full settlement ..... 3,700 Discount received ..... 300 18 Goods sold to Kushal ..... 10,000 20 Paid trade expenses ..... 200 21 Drew for personal use ..... 1,000 22 Goods return from Kushal ..... 1,200 24 Cash received from Kushal ..... 6,000 26 Paid for stationery ..... 100 27 Postage charges ..... 60 28 Salary Paid ..... 2,500 29 Goods purchased from Sheetal Traders ..... 7,000 30 Sold goods to Kirit ..... 6000 Goods purchased from Handa Traders ..... 5,000 Journlise the above transactions and post them to the ledger.

Briefly state how the cash book is both journal and a ledger.

What is the purpose of contra entry?

What are special purpose books?

What is petty cash book? How it is prepared?

Explain the meaning of posting of journal entries?

Define the purpose of maintaining subsidiary journal.

Write the difference between return Inwards and return ouwards.

What do you understand by ledger folio?

What is difference between trade discount and cash discount?

Write the process of preparing ledger from a journal.

What do you understand by Imprest amount in petty cash book?