Principal of Accounting

Topic: Cash Book

Question relating to
1. Single Column Cash Book
2. Double Column Cash Book
3. Treble Column Cash Book

1. SINGLE COLUMN CASH BOOK OR ONE COLUMN CASH BOOK:

Q. No1. Enter the following transactions in the cash book of Mr. Jameel:

2005 Rs.
Jan. 1 Mr. Jameel started business with cash 1,00,000
Jan.3 Bought goods for cash 70,000
Jan.5 Paid for stationery 1,000
Jan.7 Sold goods for cash 40,000
Jan. 10 Paid for trade expense 1,000
Jan.11 Sold goods for cash 10,000
Jan.14 Received cash from Mr. Asif 5,000
Jan. 15 Paid cash to Mr. Abdul Qadeer 10,000
Jan. 18 withdrew cash for personal use 3,000
Jan.27 Paid for electricity bill 2,000
Jan. 31 Paid salary 5,000

Q. No. 2 Enter the following transactions in Single Column Cash Book and prepare Bank account in
ledger:

2005 Rs.
March 1 Cash in hand 40,000
March 1 Bank balance 60,000
March 3 received a cheque from Usman 12,000
March 4 Deposited Usman’s cheque into bank 12,000
March 8 withdrawn from bank for business use 10,000
March 10 goods sold for cash 15,000
March 15 Goods bought for cash 40,000
March 20 Paid Abdul Raheem by cheque 13,000
March 30 Deposited into bank 8,000
March 31 Paid rent by cheque 3,000

Q.No.3. Entre the following transactions in single column cash book Irfan

a) Cash in hand Rs.25,000

b) Purchased goods for cash 2,000
c) Purchased a typewriter 3,000
 d) Sold goods to Waseem for Rs.1,200 @10% trade discount and cash received
e) Paid to Mr. Rehaan 750
f) Cash Sales 500
g) Received from ahmed & Co. 1,350
h) Purchased stationery for cash 800
i) Received from zaheer & Co. 2,400
j) Paid office rent 500
k) Paid salaries 750

Q. No. 4 writes the following transactions in the Simple Cash Book and post in to Ledger:
Jan. 1 Cash in hand Rs.15,000
Jan. 6 Purchased goods for cash 2,000
Jan.16 Received from Akbar 3,000
Jan. 18 Paid to Babar 1,000
Jan. 20 Cash Sales 4,000
Jan. 25 Paid for Stationery 60
Jan.30 Paid for Salaries 1,000
Jan. 31 Purchased office furniture 2,000

Q.No.,5 Enter the following transactions in Akbar’s Cash Book and show the balance:

Oct. 1 Balance of cash in hand Rs. 1,500

Oct. 8 purchased goods for cash from X for Rs.320
Oct. 15 sold goods for Rs. 480 to Y
Oct. 20 Received commission Rs. 65 ; Paid Commission Rs. 55
Oct.28 Paid to Salmaan on account Rs. 715
Oct. 31 Paid Salary to office clerk, Rs.100 and office rent, Rs.60

Answers.
Q. No. 1. Cash Balance, Rs. 63,000 Q. No. 2. Cash Balance,17,000
Q. No. 3 Cash Balance, Rs.22,000 Q. No. 4. Cash Balance, 15,940
Q. No. 5. Cash Balance, Rs. 315

2. DOUBLE COLUMN CASH BOOK OR TWO COLUMNS CASH BOOK

Q. No. 1. Enter the following transactions in a Double column Cash Book of Khurram & co. and find out
the balance on 07-01-2001:

Jan. 1 Cash in Hand Rs.50,000

Jan. 1 Cash in bank 700,000
Jan. 2 Paid salaries 40,000
Jan.2 paid rent by cheque 30,000
Jan. 4 Bought goods by cheque 430,000
Jan. 5 Sold goods for cash 75,000
Jan. 6 Bought Machinery by cheque 125,000
Jan. 6 Deposited into Bank 70,000
Jan. 7 withdrew from bank for Business use 45,000
Jan. 7 Cash sales 90,000
Jan. 7 withdrew from bank for personal use 40,000
Jan. 7 Received bank interest 3,000

Q. No.2 From the under mentioned information, write up a Double Column Cash Book and strike out the
balances at the end of the month:

March 1 Cash in hand Rs.30,000

March 2 Cash at bank 40,000
March 5 Received two cheques; (a) from A, Rs.10,000 and (b) from B Rs.5,000
March 12 Cash purchases, Rs. 8000 les 5% trade discount
March20 Cash sales, Rs. 2,000 and banked the same
March22 Withdrawn from Bank, Rs.8, 000 and paid wages Rs.3,000 and rent, Rs.5,000
March 23 Received from X, Cash Rs.3,000 and cheque Rs.5,000 both deposited into bank
March 25 Received cheque for sale of old machinery and banked Rs.8,000
March 28 Paid to Y, Cash Rs. 2000 and cheque Rs.3,000
March 30 Bank charged for commission Rs.500

Q.No.3 From the following transactions, write up two Column Cash Book and post into ledger:

Jan.1 Cash in hand, Rs.2,000

Jan.7 Received from Riaz & Co. Rs.200: Discount Allowed Rs.10
Jan.12 Cash sales, Rs.1000
Jan.15 Paid Zahoor Sons, Rs. 500; discount received Rs.15
Jan. 20 purchased goods for cash Rs.300
Jan.25 received from salmaan, Rs.500; Discount Rs.15
Jan. 27 Paid Hussan & Sons Rs. 300
Jan.28 Bought furniture for cash Rs. 100
Jan.31 Paid Rent Rs. 100

Q.No.4 Record the following transactions in Double Column Cash Book and post them into the ledger
July 1 Started business with cash Rs.20,000
July 2 Paid for the purchases of furniture Rs.2500
July 5 Paid Insurance premium, rs.100
July 6 Paid rent for the month, Rs.150
July 8 Paid cash for purchases of goods, Rs. 2700
July 10 Paid to Nazeer, Rs. 385 in full settlement of Rs.400. the bill of Rs. 400 was in connection with
purchase of goods
July11 Drew cash for personal use, Rs.250
July12 Received cash from Raashid, Rs.1200 in full settlement of an invoice of Rs.1250
July 17 Sold goods for Cash Rs.2,700
Answers
Q. No.1 Cash Balance, Rs. 110,000 Bank Balance, Rs. 143,000
Q.No. 2 Cash Balance, Rs 35,400 Bank Balance, Rs.46500
Q.No. 3 Cash Balance, Rs.2400 Discount Debit Rs.25 & Credit Rs.15
Q.No. 4 Cash Balance, Rs.17,815 Discount Debit Rs.50& Credit Rs.15-
TREBLE COLUMN CASH BOOK OR THREE COLUMNS CASH BOOK
Q.No.1 On the March 1,2012, Nooraani stores cash books showed Debit balances of
Cash Rs.1.550 and Bank, Rs.13,575. During the month of March, following business was
transacted

March 1 Purchased office typewriter for cash, Rs.750, Cash Sales, Rs.1,315
March 3 Deposited cash, Rs.500
March 4 Received from A. Hassan a cheque for Rs.2,550 in part of his account
March 6 Paid by cheque for merchandise purchased worth, Rs.1,005
March 8 Deposited into bank the cheque received from A. Hassan
March 10 Received from Hayyat khan a cheque for Rs.775 in full settlement of his account and
allowed him discount Rs.15
March 12 Sold merchandise to Divaan Bros. for Rs.1,500, who paid by cheque, same
deposited.
March 16 Paid Salman, Rs.915 by cheque, discount received, Rs.5
March 27 Paid to gulzar Ahmed by cheque, Rs.650
March 30 Paid salaries by cheque, Rs.1,750
March 31 deposited into the bank the cheque of Hayaat Khan
March 31 Drew from bank for office use, Rs.250

You are required to enter above transactions in Three Columns Cash Book and balance it

Q.No.2 Enter the following transactions in a three Columns Cash Book.

2012 January Rs.

01 Started business with cash 20,000
02 Opened current account with National bank 8,000
03 Bought goods by cheque 150
04 Received the cheque from Raashid 200
Allowed him discount 10
05 Sold goods for cash 40
07 Paid into Bank, Cash 30
08 Paid Jameel by cheque 345
Discount received 5
09 Paid carriage by cheque 180
10 Drew from bank Cash for Office 200
30 paid wages by cheque 60

Q. 3 Enter the following transactions in Three Columns Cash Book of Khayyam traders
1 cash in hand Rs.4,000 and overdraft with bank, Rs.6000
2 Paid salaries and wages Rs.1,200 and Rent by cheque of Rs.400 on personal account
of Khayyam
5 Cash sales amounted to Rs.5,000
6 Paid into bank Rs.2,000
8 Sold investments having face value of rs.2,000 ar rs.4000 and deposited amount in
bank
12 Received cheque from Kamaal on account Rs.290, allowed him discount, Rs.40
13 Withdrew from bank for office use Rs.500
15 Issued bearer cheque in favour of Aamir of Rs.1,080 in full settlement of Rs.1200
17 Purchased goods for cash Rs.1000
18 Received cheque from Saleem, Rs. 480 in full settlement of Rs.500
20 Paid Insurance premium in cash Rs.100
25 Cheque received from Saleem, endorsed to Abdul Kareem in full settlement of
Rs.520
29 Cheque issued to abdul Kareem dishonored
30 Deposited cash in excess of Rs. 490 in the bank Account

Q. 4 Enter the following transactions in Three Columns Cash Book, close the
Cash Book and bring down the balance as 5th June, 2012

June.1 Rs. 3,000 paid by proprietor on commencing business, of which Rs. 2,000 was
banked and the balance was retained in the office safe
June.2 An amount of Rs. 375, due to Qaasim for goods purchased on credit was settled
by a cheque, after deducting 7-1/2 % cash discount
June.3 Bought goods Rs. 375 less trade discount 7-1/2% and paid cash for same
June.4 Cash sales Rs.400, of which Rs.300 was banked
June.4 R.Smith, who owned Rs.90 on an invoice subject to 5% cash discount settled his
account by cheque, which was lodged into bank
June.5 Paid wages by cheque Rs.250
June.5 Purchased for cash an office safeRs.190
June.5 Paid in cash personal expenses of proprietor rs.60

Q. 5 From the following transactions, write up the cash book of Aftaab trading
Co. for the month of October2012
 Oct.1 Cash in hand rs. 200; Balance overdrawn at bank Rs.400
Oct. 2 Cash sales, Rs.500, Bnaked cash rs.200
Oct. 3 Paid Habeeb & Co. by cheque Rs.150
Oct. 5 Received Abdur Raheem’s cheque, Rs.850 and paid into Bank
Oct.6 Paid salaries in cash, rs. 250, bought goods for cash Rs.140
Oct. 8 Drew from Bank for office use, Rs.160
Oct.11 Cash sales Rs.21, Paid wages in cash Rs.120
Oct. 13 received by cheque from Aftaab Ahmend, Rs. 360, Discount Rs.10 paid this into
Bank
Oct. 16 Sent a cheque to Jones for Rs.275, discount received Rs.5
Oct. 19 Received cash from Abdur Raheem, Rs. 275, Discount allowed rs.6
Oct.21 Purchased furniture for cash, Rs.160
Oct. 23 Drew cash from bank Rs.250, paid for advertising in cash Rs.55
Oct. 24 Received cheque from Aijaaz Basheer, rs.245 and paid same into Bank
Oct.29 Aijaaz Basheer’s cheque returned by bank unpaid
Oct.31 Paid salaries in cash Rs. 160
Oct. 31 Paid office cash into bank, Rs.100

Q. 6 From the following particulars write up a Treble Column Cash Book of Mr.
Naseem.

2005
May, 01: Cash in hand Rs. 20,000
May, 01: Cash at Bank Rs. 15,000
May, 03: Goods sold for cash Rs. 4,500
May, 05: Goods bought for cash Rs. 9,000
May, 08: Received a cheque from M. Farooq for Rs. 9,650 in full settlement of his dues Rs.
9,800 and
Deposited into the bank.
May, 11: Paid to Zulfiqar cash Rs. 5,000 and a cheque for Rs. 4,700 in full settlement of his
dues Rs. 10,000
May, 15: Cash received from M. Kaleem Rs.4, 900 in full settlement of his dues Rs. 5,000
May, 17: Paid cash to Adnan Rs. 1,950 in full clearance of his dues Rs. 2,000
May, 20: Received a cheque from Asim Tufail Rs. 3,900 in full settlement of his dues Rs.
4,000
May, 25: Bank credited interest Rs. 500
May, 31: Bank debited bank charges Rs. 700

Answers:
Q. No. Cash Balance Bank Balance Discount Allowed Discount received
1 1865 14330 15 5
2 12410 7095 10 5
3 490 3020 60 160
4 503.125 1788.625 4.5 28.128
5 221 375 16 5