Answered: Enter the following transactions in a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Enter the following transactions in a three column cash
book.
2009 Rs.
January 1 Cash in hand 410
Balance at bank 8,920
2 Cash sales 4,500
3 Paid into bank 4,000
5 Purchased stationary 100
8 Paid Mahesh by cheque 280
Discount received 20
12 Gave a cheque for cash purchases 1,500
15 Drew for personal use 500
20 Drew from bank 1,000
21 Paid wages 800
31 Bank charges as per pass book 10

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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