Cash Book

Meaning of Cash Book

It is well known that the number of cash transactions is quite large in
every business and it is quite difficult to record all cash transactions in
the journal. In this situation, a separate book is needed to maintain for
recording all cash transactions of a business, which is called a
‘cash book’.
A cash book is a book, which is used to record all cash transactions of a
business i.e., cash receipts and cash payments.
Objectives of Cash Book
• To know the daily records of cash (including bank) receipts and
payments in a book.
• Serves the purpose of both of book of primary entry and a book of
secondary entry.
• The final balance at the end of an accounting period in the cash
column indicates the cash balance in hand and the same should
actually tally with the physical cash balance.
• Helps cash verification at the time of a statutory audit.
Types of Cash Book
Different types of cash book are used by different business concern. But
the most important types of cash book are:
a. Single column cash book.
b. Double column cash book.
c. Triple column cash book (cash book with discount cash and bank).
d. Petty cash book.
Single Column Cash Book
It is also known as ‘simple cash or bank book’ because it contains only
one amount column for cash or bank on either side. It can also be
classified into two:
a. Simple Cash Book
This type of cash book records all cash receipts and cash payments of
the business. Its format is similar to ledger amount; therefore; it is
divided into two sides. The debt side i.e. the left hand side, is used for
recording cash receipts and the credit sales i.e. right hand side, is used
for recording cash payments. The following format is used to prepare a
simple cash book:
Dr. Simple Cash Book (Cash Column only) Cr.
Date Particuals LF Cash (Rs.) Date Particulars LF Cash (Rs.)

While preparing the single column cash book, the following points should be kept in mind:
• Opening balance of cash is shown on debit side of a simple cash book as ‘To balance b/d’/
• All cash receipts are shown on debit side of this book.
• All cash payments are shown on credit side of this book.
• It does not show any credit and non-cash transactions.
D.1 Consider the following transactions.
Chaitra 1 Business started with cash……………………Rs. 50,000
2 Opened bank account and deposited……………...10,000
5 Cash drew from bank……………………………....3,000
10 Goods purchased on cash…………………………..8,000
14 Goods sold on cash………………………………..14,000
20 Cash received from Ram…………………………...6,000
28 Paid for salaries…………………………………….4,000
Required: Simple cash book.
Solution,
Dr. Simple Cash Book Cr.
Date Particuals LF Cash (Rs.) Date Particulars LF Cash (Rs.)
Chaitra 1 To Capital a/c 50,000 Chaitra 2 By Bank a/c 10,000
5 To Bank a/c 3,000 10 By Purchase a/c 8,000
14 To Sales a/c 14,000 28 By Salaries a/c 4,000
20 To Ram's a/c 6,000 31 By Balance c/d 51,000
73,000 73,000
Bal. 1 To Balanced b/d 51,000
b. Simple Cash (Bank Column only)
It is generally prepared by those concerns which make all their
transactions through bank. This type of book records all cash receipts
and cash payments of the business through bank. Its format is similar to
simple cash book. Its debit side shows all the receipts through bank.
Similarly, its credit side shows all the payments through bank. The
following format is used to prepare a simple cash book (bank column
only):
Dr. Simple Cash Book (Bank Column only) Cr.
Date Particulars LF Bank (Rs.) Date Particulars LF Bank (Rs.)

While preparing this book, the following points should be considered:

• Opening balance of bank is shown on debit side as ‘To balance b/d’. Credit opening balance is
shown on credit side as ‘By Balance b/d’.
• All cash receipts through bank are shown on its debit side.
• All cash payments through bank are shown on its credit side.
• It does not show any credit transactions are non-banking transactions.
D.2 Consider the following transactions and assume that all receipts and payments are made
through bank.
Baisakh 1 Opening bank balance……………………….Rs. 16,000
4 Received from Jay Lal……………………………5,000
5 Paid to X & Y Co. …..……………………………6,000
10 Paid for electricity charge………………………...2,000
15 Interest allowed by bank………………………….3,000
20 Bank charges charged by bank……………………1000
28 Paid for rent……………………………………….1,900
Required: Simple bank book.
Solution,
Dr. Simple Bank Book Cr.
Date Particulars LF Bank (Rs.) Date Particulars LF Bank (Rs.)
Bai. 1 To Balance b/d 16,000 Bai. 5 By X & Y Co. a/c 6,000
4 To Jay Lal's a/c 5,000 10 By Electricity charge a/c 2,000
15 To interest a/c 3,000 20 By Bank charges a/c 100
28 By Rent a/c 1,900
31 By Balance c/d 14,000
24,000 24,000
Jesh. 1 To Balance b/d 14,000
Double Column Cash Book
In this cash book, there are two columns of amount in both sides. The
two column of amount may be either cash and discount columns, cash
and bank columns or bank and discount columns. Hence, the double
column Cash Book may be three types:
i. Cash and Discount Columns
ii. Bank and Discount Columns
iii. Cash and Bank Columns
Double Column Cash Book with Cash and
Discount Column
Usually cash discount is allowed to customers who pay promptly. In any
case, there will be no cash discount unless payment is received from
customers. Similarly, no discount is received unless cash is paid to the
supplier. To record discount allowed and discount received along with
cash receipt or cash payment, one column is added on each side with
cash column. The discount on debit side records the discount allowed
and the discount column on credit side records the discount received.
The ruling of the double column Cash Book with cash and discount is
shown as follows:
Receipt (Dr.) Cash Book with Cash and Discount Columns Payments (Cr.)
Date Particulars LF Discount Cash Date Particulars LF Discount Cash

D.M.1 2013
July 1.Balance of Cash in hand Rs. 1,600
2 Paid to Mohan (discount allowed Rs. 20) 780
3 Cash Sales 400
4 With drawn from Bank 500
5 Sale of old Furniture 300
6 Received from Ram (discount allowed Rs. 15) 400
7 Paid wages 500
8 Receive from Ravi against debt previously written off 150
Solution,
Receipt (Dr.) Cash Book with Cash and Discount Columns Payments (Cr.)
Image Stationary, Dhangadhi
Date Particulars LF Discount Cash Date Particulars LF Discount Cash
2013 July 1 To Balance B/d 1,600 2013 July 2 By Mohans A/c 20 780
3 To Sales A/c 400 7 By Wages A/c 500
4 To Bank A/c 500 31 By Balance c/d 2,070
6 To Furniture A/c 300
7 To Ram's A/c 15 400
8 To Ravi's A/c 150
15 3,350 20 3,350
2013 Aug 1 To Balance b/d 2,070
D.2 From the following information, prepare cash book with discount and cash column.
Jan 1 Cash balance Rs. 5,000
5 Cash received from Hari Rs. 3,000 in full settlement of Rs. 3,200.
10 Cash paid to Binod Rs. 2,000 and received discount Rs. 100.
15 Cash paid to Jagat Rs. 1,000 less 10% discount.
20 Cash received from Gopal Rs. 1,800 after deducting 10% discount.
25 Cash paid to Ramesh Rs. 1,140 after deducting 5% discount.
Solution,
(Dr.) Double Column Cash Book (Discount and Cash Column) Payments (Cr.)
Date Particulars LF Discount Cash Date Particulars LF Discount Cash
1-Jan To Balance b/d 5,000 10-Jan By Binod's a/c 100 2,000
5-Jan To Hari's a/c 200 3,000 15-Jan By Jagat's a/c 100 900
20-Jan To Gopal's a/c 200 1,800 25-Jan By Ramesh's a/c 60 1,140
31-Jan By Balance c/d 5,760
400 9,800 260 9,800
1-Feb To Balance b/d 5,760

Working Notes:
i) Discount from Jagat = 1,000 x 10/100 = Rs. 100
ii) Discount of Gopal = 1,800 x 10/90 = 200
iii) Discount of Ramesh = 1,140 x 5/95 = 60
b. Cash Book with Discount and Bank Columns
Generally in big firms, all transactions are made through bank. All cash receipts are deposited
through banks and all payments are made though banks. In such case, cash book is opened with
bank and discount column. Its general format is as follows.
Date Particulars LF Discount Bank Date Particulars LF Discount Bank
D.3 Consider the following transactions.
Marga 1 Cash at bank………………………………………………….Rs. 40,000
5 Cash collection from debtors (in full settlement of Rs. 3,400)…….3,200
10 Cash paid to creditors (in full settlement of Rs. 4,200)…………...4,100
12 Paid for rent………………………………………………………..2,000
15 Interest allowed by bank…………………………………………..3,000
16 Dividend paid ……………………………………………………..6,000
26 Bank charge made by bank………………………………………...2,000
28 Received from Alpha Company (in full settlement of Rs. 22,500) 22,000
Required: Cash book with bank and discount column assuming that all receipts are banked and
all payment are made through cheque.
Solution, Cash Book with Discount and Bank Column Cr.
Date Particulars LF Discount Bank Date Particulars LF Discount Bank
1-Aug To Balance b/d 40,000 10-Aug By Creditors a/c 100 4,100
5 To Deptors a/c 200 3,200 12 By Rent a/c 2,000
15 To interest a/c 3,000 16 By Dividend a/c 6,000
28 To Alpha Co's a/c 500 22,000 26 By Bank charges a/c 2,000
31 By Balance c/d 54,100
700 68,200 100 68,000
1-Sep To Balance b/d 54,100
c. Cash Book with Cash and Bank Columns
A cash book with cash and bank column contains two amount columns in each side. All the cash
and cheques as well as other receipts by bank are entered on the debit side of this cash book. But
payments made through cash and cheques are recorded on the credit side. It is balanced to know
the cash and bank balance. It contains contra entry^2 for the amount of cash deposited into bank
and withdrawn from bank. Format of a cash book with cash and bank column is given below.
Dr. Double Column Cash Book (Cash and Bank Column) Cr.
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
Contra Entry
The term ‘Contra’ is a Latin word which means ‘against or opposite’. In book-keeping, this term
means opposite sides or both the side of any account.
Contra entry is a condition where the same transaction is posted on both side of the two
accounts, individually. In the case of cash and bank columns of cash book, there are certain
transactions, which relate to both the cash account and bank account at the same time. So, these
transactions have to be entered in both the accounts on both the sides of cash book at the same
time. In other words, when cash is deposited into the bank or withdrawn from the bank for
office use, it is shown on both sides of two columns in a cash book. Recording of such
transaction on both sides is called contra entry. Contra entry is marked by alphabet ‘C’ against
such entry in the L.F. column on both sides of cash book. For example, when cash is deposited
into bank Rs. 5,000, the amount is once recorded on the debit side of bank column of cash book
as ‘To Cash Rs. 5,000’ and on the credit side of cash column of cash book as ‘By Bank Rs.
5,000’. This is a contra entry, therefore, in the columns for ledger folio on both sides, the letter
‘C’ is written to indicate the fact.
D.4 Consider the following transactions.
January 1 Cash in hand Rs. 40,000 and cash at bank……….Rs. 20,000
5 Cash paid into bank…………………………………..5,000
10 Goods sold on cash…………………………………...4,000
12 Goods purchased on cash………………………...….12,000
13 Cash drew from bank for office use…………………..2,000
16 Furniture purchased and paid by cheque……………..2,800
18 Cash drew from bank for personal use…………….....1,000
30 Salaries paid…………………………………………..2,000
Required: Cash book with cash and bank column
Solution,
Dr. Cash Book with Cash and Bank Column Cr.
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
1-Jan To Balance b/d 40,000 20,000 5-Jan By Bank a/c C 5,000
5 To Cash a/c C 5,000 12 By Purchase a/c 12,000
10 To Sales a/c 4,000 13 By Cash a/c C 2,000
13 To Bank a/c C 2,000 16 By Furniture a/c 2,800
18 By Drawing a/c 1,000
30 By Salaries a/c 2,000
31 By Balance c/d 27,000 19,200
46,000 29,000 46,000 29,000
1-Feb To Balance b/d 27,000 19,200
Triple Column Cash Book
The cash book, which contains cash column in addition to discount and bank columns, is called
‘Triple Column Cash Book’. In other words, it is the cash book, in which three columns are
maintained in each side i.e. discount, cash and bank. The amount of cash and cheque received,
amount received directly through bank and discount allowed are shown on the debit side of this
type of cash book. Similarly, all cash payments and payments through bank as well as discount
received are shown on its credit side. Both cash and bank columns are balanced but discount
columns are totaled.
The following are the summary rules for the preparation of triple column cash book:
1. Cash Column: All cash receipts should be shown on debit side and all the cash payments
should be shown on credit side.
2. Bank Column: All cheques and cash received through bank should be debited and all the
payments through bank should be credited.
3. Discount Column: Discount allowed is debited while discount received is credited.
Dr. Triple Column Cash Book Cr.
Date Particulars LF Discount Cash Bank Date Particulars LF Discount Cash Bank

D.5 Consider the following transactions.

March 1 Cash in hand……………………….………........Rs. 5,000
Cash at bank………………………………………...8,000
6 Cash sales…………………………………………...2,000
8 Goods sold to Hari on credit………………...……...3,000
12 Goods purchased from Ram on credit………...…....4,000
18 Cash drew from bank for office use……………...…1,000
20 Cash received from Hari in full settlement……….…2,900
25 Cash drew from bank for private use……………….1,500
28 Cash paid into bank…………………………...…….1,500
30 Cheque issued to Ram in full settlement…………….3,800
Required: Triple column cash book.
 Solution,
Dr. Triple Column Cash Book Cr.
Date Particulars LF Discount Cash Bank Date Particulars LF Discount Cash Bank
1-Mar To Balance a/c 5,000 8,000 18-Mar By Cash a/c C 1,000
6 To Sales a/c 2,000 25 By Drawing a/c 1,500
18 To Bank a/c C 1,000 28 By Bank a/c C 1,500
20 To Hari's a/c 100 2,900 30 By Ram's a/c 200 3,800
28 To cash a/c C 1,500 31 By Balance c/d 9,400 3,200
100 10,900 9,500 200 10,900 9,500
1-Apr To Balance b/d 9,400 3,200
D.6 Following cash and banking transactions are given to you:
2076 Magh 1 Cash in hand Rs. 475, balance at bank Rs. 4,965.
2076 Magh 5 Bought goods and paid by cash Rs. 400 and by cheque Rs. 650.
2076 Magh 10 Paid Archana’s account of Rs. 600 discount at 2%.
2076 Magh 15 Cash sales Rs. 750.
2076 Magh 20 Deposited in bank Rs. 375.
2076 Magh 25 Received cash Rs. 1,900 from Nanu after deducting discount of Rs. 100.
Required: Cash book with cash, bank and discount columns.
Solution,
Dr. Cash Book with Cash, Bank and Discount Columns Cr.
Date Particulars LF Discount Cash Bank Date Particulars LF Discount Cash Bank
2076- 2076-
1-Oct To Balance b/d 457 4,965 5-Oct By Purchase a/c 400 650
15-Oct To Sales a/c 750 Oct-00 By Archana's a/c 12 588 _
20-Oct To Cash a/c C _ 375 20-Oct By Bank a/c C 375 _
25-Oct To Nanu's a/c 100 1,900 _ 31-Oct By Balance c/d 1,762 4,690
100 3,125 5,340 12 3,125 5,340
1-Nov To Balance b/d 1,762 4,690
D.7 You are given the following cash and banking transactions:
Chaitra 1 Cash in hand Rs. 10,000 and cash at bank (credit) Rs. 50,000.
Chaitra 6 Received cheque of Rs. 5,700 from a customer after deducting 5 percent discount.
Chaitra 12 Paid by cash Rs. 1,900 in full settlement of Rs. 2,000.
Chaitra 18 Cash deposited into bank Rs. 1,000.
Chaitra 24 Sale of Rs. 30,000, Rs. 4,000 received in cash and balance amount is received by
cheque, allowed cash discount of Rs. 1,000.
Required: Cash book with cash, bank and discount columns.
Solution,
Dr. Triple Column Cashbook Cr.
Date Particulars LF Discount Cash Bank Date Particulars LF Discount Cash Bank
1-Dec To Balance b/c 10,000 1-Dec By Balance b/d 50,000
6-Dec To Customers a/c 300 5,700 12-Dec By Sundry creditors a/c 100 1,900
18-Dec Tp Cash a/c C 1,000 18-Dec By Bank a/c C 1,000
20-Dec To Sales a/c 1,000 4,000 25,000 30-Dec By Balance c/d 11,000
30-Dec To Balance c/d 18,300
1,300 14,000 50,000 100 14,000 50,000
1-Jan To Balance b/d 11,100 1-Jan By Balance b/d 18,300

Working notes:
Gross amount = Net amount x

Discount = 5% of Rs. 6,000 = Rs. 300

Or, Discount = 5,700 x 5/95 = 300
D.8 Following transaction are given:
Chaitra 1 Cash balance Rs. 40,000 and Bank balance Rs. 90,000.
Chaitra 3 Goods sold for Rs. 30,000 and received cash Rs. 10,000 and cheque Rs. 19,500 in full
settlement.
Chaitra 10 Cash deposited into bank Rs. 12,000.
Chaitra 16 Cash paid to Ram Rs. 4,500 after deducting 10% discount.
Chaitra 25 Goods purchased for Rs. 5,000 and received a discount of 10%.
Chaitra 30 Salary paid Rs. 6,000.
Required: Triple column cash book.
Discount from Ram = 4,500 x 10/90 = 500.
 Solution,
Dr. Triple Cash Book Cr.
Date Particulars LF Discount Cash Bank Date Particulars LF Discount Cash Bank
12-Jan To Balance c/d 40,000 90,000 10-Dec By Bank a/c C 12,000
3-Dec To Sales a/c 500 10,000 19,500 16-Dec By Ram a/c 500 4,500
10-Dec To Cash a/c C 12,000 25-Dec By Purchase a/c 500 4,500
30-Dec By Salary a/c 6,000
30-Dec By Balance c/d 23,000 121,000
500 50,000 121,500 1,000 50,000 121,000
1-Jan To Balance b/d 23,000 121,500
H.W.1 Following Cash and Banking transactions are given:
Baishakh 1 Cash in hands Rs. 60,000.
Baisakh 4 Sold goods for cash Rs. 15,000.
Baisakh 8 Deposited into bank Rs. 10,000.
Baisakh 10 Withdraw from bank for office use Rs. 5,000.
Baisakh 12 Paid wages by cheque Rs. 4,000.
Baisakh 18 Purchased goods worth Rs. 5,00 and paid Rs. 2,000 in cash and balance through
cheque.
Required: Cash book with cash and bank columns.
[Ans: Cash Rs. 68,000 (Dr.), Bank Rs. 2,000 (Cr.)]
H.W.2 Following transactions are given:\
Chaitra 1 Cash and Bank balance Rs. 80,000 and Rs. 90,000 respectively.
Chaitra 4 Purchased goods for Rs. 30,000 and paid Rs. 15,000 in cash and balance by cheque.
Chaitra 9 Received from Kedar Rs. 98,000 in full settlement of Rs. 100,000.
Chaitra 14 Cash of Rs. 40,000 deposited into bank.
Chaitra 18 Paid Rs. 12,000 for salary through cheque.
Chaitra 30 Withdraw cash Rs. 4,000 from bank for office use.
Required: Triple column cash book.
[Ans: Cash Rs. 127,000 (Dr.), Bank Rs. 99,000 (Dr.)]
H.W.3 Enter the following transactions in a triple column cash book:
Ashadh 1 Balance of cash in hand Rs. 8,000 and at bank Rs. 20,000.
Ashadh 2 Received cash from Mohan Rs. 2,000 and allowed him discount of Rs. 60.
Ashadh 3 Paid into bank Rs. 4,000.
Ashadh 8 Drew Rs. 1,800 for office use and Rs. 200 fro personal use.
Ashadh 9 Made a cash purchase of Rs. 3,000 after received a discount of Rs. 400.
[Ans: Cash Rs. 4,800 (Dr.); Bank Rs.: 22,000 (Dr.)]
D.9 Following Transactions are given:
July 1 Cash on hand Rs. 600 and Cash at bank Rs. 9,670
July 2 Received cash from Aman Rs. 1,900 and allowed him discount Rs. 100
July 4 Paid Atul by cheque Rs. 800 and received discount Rs. 30
July 6 Purchased Goods and paid by cheque Rs. 2,100
July 8 Deposited with bank Rs. 2,100
July 10 Sold goods to Anil on credit Rs. 1,100\
July 12 Sold goods & received payment by cheque Rs. 900
July 15 Received a cheque from Anil in full settlement of his account Rs. 1,050
July 17 Withdrawn from bank for office use Rs. 900
July 19 Purchased goods from BABA Rs. 3,000
July 19 Paid BABA by cheque Rs. 2,900 and he allowed discount Rs. 100
July 20 Paid telephone charges Rs. 100
July 23 Paid to Ahmad by cheque Rs. 684 for full settlement of his account of Rs. 700
July 24 Cash Sales 1,900
July 26 Received cheque from Kuber and sent to the bank Rs. 480; discount allowed to him Rs. 20
July 27 Purchased a new machinery for office use by cheque Rs. 4,000
July 28 Bank dishonored the cheque of Kuber
July 31 Deposited with bank 600
July 31 Bank charges as shown in the passbook 26
Solution,
Dr. Triple Column Cash Book Cr .
Date Particulars LF Discount Cash Bank Date Particulars LF Discount Cash Bank
1-Jul To balance b/d 600 9,670 4-Jul By Atul a/c 30 800
2 To Aman a/c 100 1,900 6 By purchase a/c 2,100
8 To Cash a/c C 2,100 8 By Bank a/c C 2,100
12 To Sales a/c 900 17 By Cash a/c C 900
15 To Anil a/c 50 1,050 19 By Baba's a/c 100 2,900
17 To Bank a/c C 900 20 By Telephone charge 100
24 To Sales a/c 1,900 23 By Ahmed's a/c 16 684
26 To Kuber a/c 20 480 27 By Machinery a/c 4,000
31 To Cash a/c C 600 28 By Kuber's a/c 20 480
31 By Bank a/c C 600
31 By Bank Charge a/c
31 By Balance c/d 2,500 2,510
170 5,300 14,800 166 5,300 14,800
1-Aug To Balance b/d 2,500 2,510
D.10 Prepare a Double Column Cash Book (Cash book with Discount and Cash Column) from
the following transactions of Mr. Gopal:
2015 Rs.
Jan. 1 Cash in hand 4,000
6 Cash Purchases 2,000
10 Wages paid 40
12 Cash received from Suresh and 1,980
allowed him discount 20
19 Cash paid to Meena 2,470
and discount received 30
27 Cash paid to Radha 400
28 Purchased goods for cash 2070
 Solution,
Dr. Cash Book with Cash and Discount Columns Cr.
Date Particulars LF Discount Cash Date Particulars LF Discount Cash
2015 Jan 1 To Balance B/d 4,000 2015 Jan 6 By Purchase a/c 2,000
11 To Sales a/c 6,000 10 By Wages a/c 40
12 To Suresh a/c 20 1,980 19 By Meena a/c 30 2,470
27 By Radha a/c 400
28 By Purchase a/c 2,070
31 By Balance 5,000
20 11,980 30 11,980
2015 Feb. 1 To Balance b/d 5,000
D.11 Prepare a Double Column Cash Book (Cash book with Bank and Discount Column) from
the following transactions assuming all receipts and payments are made through bank:
2015 Rs.
Jan. 1 Cash at bank 5,000
3 Purchased goods 12,000
9 Rents paid 4,000
11 Sold furniture 5,000
15 Cash received from Dinesh and 1,800
allowed him discount 100
19 Paid to Bimal 2,500
Discount received by him 130
25 Purchased on credit 4,000
30 Paid to creditors as full settlement 3,800
 Solution,
Dr. Cash Book with Cash and Discount Columns Cr.
Date Particulars LF Discount Cash Date Particulars LF Discount Cash
2015 Jan 1 To Balance B/d 5,000 3 By Purchase a/c 12,000
11 To Furniture a/c 5,000 9 By Rent a/c 4,000
15 To Dinesh a/c 100 1,800 19 By Bimal a/c 130 2,500
30 By Creditors a/c 200 3,800
31 To Balance a/c 10,500

100 22,300 330 22,300

2015 Aug 1 To Balance b/d 10,500
D.12 Prepare book with Cash and Bank Columns from the following transactions cash book of
Mr. Subash.
a. Opening Cash balance Rs. 25,000
b. Open a bank account with Rs. 10,000
c. Issued a cheque of Rs. 1,500 to Mr. Ram Pradham
d. Paid into bank Rs. 4,500
e. Paid to Hada & Sons by cheque Rs. 1,500 and cash Rs. 700.
Solution,
Dr. Cash Book with Cash and Bank Columns Cr.
Date Particulars LF Cash Bank Date Particulars LF Cash Bank

a. To Balance b/d 25,000 b. By Bank a/c c 10,000 12,000

b. To Cash a/c c 10,000 c. By Ram a/c 4,000
d. To Cash a/c c 4,500 d. By Bank a/c c 4,500 2,500
10,500 e. By Hada & Sons a/c 700 3,800
30 By Balance c/d 9,800 11,500
25,000 14,500 25,000 14,500
1 To Balance b/d 9,800 11,500
D.13 Following cash and banking transactions were given to you:
Chaitra
1. Balance of cash in hand Rs. 7,200
Cash at bank Rs. 21,500
8. Received cheque of Rs. 4,000 from Devaki Timilsina
16. Bought goods for Rs. 8,000 and paid cash Rs. 3,000 and balance by cheque
21. Drawn for office use Rs. 7,000
30. Paid salary of Rs. 1,200 by cheque and rent of Rs. 500 in cash
Required: Cash book with Cash and Bank columns.
 Solution,
Dr. Cash Book with Cash and Bank Columns Cr.
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
Chai.
1 To Balance b/d 7,200 21,500 16 By purchase a/c 3,000 5,000
8 To Devaki a/c 4,000 21 By Cash a/c 7,000
21 To Bank a/c c 7,000 30 By salary a/c c 1,200
30 By rent a/c 500
30 By Balance c/d 10,700 12,300
14,200 25,000 14,200 25,000
Bai. 1 To Balance b/d 10,700 12,300
D.14 Write up the Cash book with Cash and Bank column from the following transactions for
the month of Magh.
1. Balance of cash at office Rs. 7,220 and overdraft at bank Rs. 21,350
4. Sold goods for Rs. 15,000 and received cheque for Rs. 11,000 and balance in cash.
5. Paid into Bank Rs. 7,000
10. Received cash from Mr. Kama Rs. 5,400 and allowed sum a discount of Rs. 100
15. Paid into bank Rs. 8,000
22. Purchased goods from Mr. Shrestha for Rs. 15,000 and issued cheque for Rs. 6,000 only as
part payment.
 Solution,
Dr. Cash Book with Cash and Bank Columns Cr.
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
Magh Magh
1 To balance b/d 7,220 1 By balance b/d 21,350
4 To sales 4,000 11,000 5 By bank C 7,000
5 To Cash C 7,000 15 By bank C 8,000
10 To Kama 5,400 22 By purchases 6,000
15 To Cash C 8,000 30 By Balance c/d 1,620
30 To Balance c/d 1,350
16,620 27,350 16,620 27,350
Fal. 1 To Balance b/d 1,620 Fal. 1 By Balance b/d 1,350
EXAM TYPE PROBLEMS
Q.1 Following cash and banking transactions are given.
March 1 Balance of cash in hand Rs. 25,000 and at bank Rs. 30,000
March 5 Purchased goods and issued a cheque Rs. 10,000
March 6 Goods sold for cash Rs. 15,000
March 8 Paid cash into bank Rs. 25,000
Required: Cash Book with cash and bank column
[Ans: Balances: cash Rs. 15,000, Bank Rs. 45,000]
Q.2 Following cash and banking transactions are give:
2063, Chaitra 1: Balance of cash in hand Rs. 20,000 and cash at bank Rs. 50,000
2063, Chaitra 5: Goods purchased and paid through cheque Rs. 20,000
2063, Chaitra 10: Goods sold for cash Rs. 30,000
2063, Chaitra 15: Purchased furniture and paid through cheque Rs. 10,000
2063, Chaitra 20: Deposition into bank Rs. 40,000
2063, Chaitra 25: Withdrawn cash Rs. 10,000 from bank for office purpose
Required: Cash book with cash and bank column
[Ans: Balance: Cash Rs. 20,000; Bank Rs. 50,000]
Q.3 The following transactions are given:
Shrawan 1 : Cash in hand Rs. 10,000 and cash at Bank Rs. 100,000
Shrawan 5 : Received cash Rs. 19,000 from the Debtors after deducting discount at 5%
Shrawan 10 : Paid cash Rs. 2,900 in full settlement of Rs. 3,100
Shrawan 25 : Purchased goods for Rs. 20,000 and paid Rs. 5,000 in cash. The balance amount
is paid through cheque after receiving discount of Rs. 200
Shrawan 28 : Cash deposited into bank Rs. 12,000
Required: Triple Column Cash Book
[Ans: Cash balance Rs. 9,100; Bank balance Rs. 97,200]
Q.4 Following cash and banking transactions are given:
Falgun 1 : Cash in hand Rs. 20,000 and cash at Bank Rs. 50,000
Falgun 2 : Received from Maharjan Rs. 9,500 in full settlement of account Rs. 10,000
Falgun 5 : Deposited in Bank Rs. 10,000
Falgun 8 : Purchased goods for Rs. 15,000 and paid Rs. 9,000 through cheque and the
balance amount is paid in cash after received discount of Rs. 500
Falgun 9 : With drawn cash from bank Rs. 5,000 for office use
Required: Triple Column Cash Book
[Ans: Balances: Cash Rs. 19,000; Bank Rs. 46,000]
Q.5 Following transactions are given:
Bhadra 1 : Balance at bank Rs. 100,000 and cash in hand Rs. 50,000
Bhadra 7 : Received cheque for sale of goods Rs. 25,000
Bhadra 12 : Cash deposited into bank Rs. 20,000
Bhadra 18 : Issued a cheque of Rs. 9,500 in favor of Ramesh in settlement of Rs. 10,000
Bhadra 24 : Received Rs. 25,000 from debtors in cash
Bhadra 27 : Issued a cheque of Rs. 35,000 for the payment of salary of the month
Required: Cash book with cash, bank and discount columns
[Ans: Balance: Cash Rs. 55,000; Bank Rs. 100,500]
Q.6 Following cash and banking transactions are given:
Chaitra 1 : Cash in hand Rs. 50,000
Cash at bank Rs. 30,000
Chaitra 6 : Goods sold for cash Rs. 10,000
Chaitra 12 : Cash deposited into bank Rs. 5,000
Chaitra 16 : Amount withdrawn from bank for office use of Rs. 3,000
Chaitra 20 : Purchased goods worth Rs. 12,000 and paid Rs. 6,000 in cash and balance by
cheque
Required: Cash Book with cash and bank columns. [Ans: Cash Rs. 52,000; Bank Rs. 20,000]
Q.7 The following cash and banking transactions are given:
2070 Poush 1 : Cash Balance Rs. 350,000
Poush 12 : Deposited into bank Rs. 300,000
Poush 13 : Purchased goods for cash Rs. 20,000
Poush 15 : Received cash Rs. 4,000 from S. Company for the full settlement of Rs.
4,300
Poush 25 : Paid wages by cheque Rs. 40,000
Poush 28 : Withdrawn cash from bank for private use Rs. 5,000
Required: Triple Column Cash Book [Ans: Balances: Cash Rs. 34,000; Bank Rs. 255,000]
Q.8 The following cash and banking transactions are given:
Baishakh 1 : Cash in hand Rs. 20,000 and cash at bank Rs. 50,000
Baishakh 3 : Purchased goods for Rs. 10,000 at 10% discount
Baishakh 7 : Received a cheque of Rs. 2,500 from Birbal and allowed him discount Rs. 500
Baishakh 10 : Issued a cheque for telephone charge payment Rs. 500
Baishakh 13 : Paid into bank Rs. 10,000
Baishakh 15 : Commission received Rs. 3,000
Required: Triple Column Cash Book
[Ans: Balances: Cash Rs. 4,000; Bank Rs. 62,000]
Q.9 Following transactions are given:
Poush 1 : Cash in hand Rs. 40,000 and cash at bank Rs. 80,000
Poush 5 : Goods costing Rs. 5,000 was purchased at Rs. 4,900
Poush 12 : Cash received from Arun of Rs. 900 and settled his account of Rs. 1,000
Poush 19 : Cash deposited into bank of Rs. 6,000
Poush 23 : Interest received from investment of Rs. 1,200
Poush 27 : Cash withdrawn from bank of Rs. 2,000 for office use
Required: Triple column Cash Book
[Ans: Balances: Cash Rs. 84,000; Bank Rs. 33,200]