Answered: Mr. M starts business with Rs. 20,000…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 4QY: What is the journal entry to record an NSF check, from J. Smith for 250, that is returned with the...

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Mr. M starts business with Rs. 20,000 on 1st April 2012. Of this he pays Rs. 15000 into his bank account. His cash transactions during the week were: April 1 Purchased stationery for cash Rs. 100 April 2 Purchased goods for cash Rs. 2500 April 2 Cash Sales Rs.1500 April 3 Received from J Brown Cash on account Rs. 1000 April 4 Paid to J. R Cash Rs. 2200 April 5 Paid for Advertisement Rs. 400 April 6 Cash Sales Rs. 1800 April 6 Purchased old machinery Rs. 800 April 6 Purchase from sham on credit Rs. 6000 Make out a single column cash book .

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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