Education for character

and competency
Class: XI COMMEREC

Subject: ACCOUNTING

Topic: CASH BOOK

Hashim a sole trader uses Three column cash book. On March 1,1991 he had cash on hand Rs.25000 and cash in Bank Rs.52000.
During the month of March 1991, he completed the following transactions.
March
3 Purchased merchandise for Rs.5300 and issued a cheque for the amount.
6 Cash sales deposited into Bank Rs.6000.
8 Purchased office supplies for cash Rs.200.
10 Received a cheque for Rs.4900 from Mubarak in full settlement of his account of Rs.5000 and deposited the cheque into
bank.
15 Sold merchandise for cash Rs.2500.
18 Withdrew cash for personal use Rs.2000
20 Issued cheque for Rs.2450 to Ahmad in full settlement of his account of Rs.2500.
24 Withdrew from bank Rs.5000.
27 Merchandise purchased for cash Rs.3000.
30 Salary paid by cheque Rs.3500 .

Required:
a)Enter the opening balances on March 1, and record the above transactions in Three-column cash book
b)Balance the Cash Book on March 31,1991: close it and bring down cash and bank balances on April 1,1991.
C)Set up T-accounts for sales discount and Purchase discount and post the totals therein from the Cash book
 M/S hashim
cash book
for the month ended march 31, 1991
Date Pariculars P Sales
R Discount
Mar. 1 Balances
6 Sale
10 A/c receivable 100 4900 18 Drawing
(mubarak)
15 Sales 2500 20 Account
payable
(ahmed)
24 Bank C 5000 24
27
30

100 32500 62900 50 5200 16250

Mar. 1 27300 46650

Apr. 1 Balances B/F 100 32500 62900 50 32500 62900
27300 46650
Mr. Habeeb uses the three column cash book. On May 1,1994 cash on hand was Rs.30000 and
cash in bank Rs.50000. The following transactions were completed during May 1994.
May 1: Mr.Atif , a customer, owed Rs.9000. Of this amount he settled Rs.4500 by sending a
cheque for Rs.4000 and availed of discount.
May 3: Deposited Mr.Atif’s cheque into bank.
May 6: Account Payable to Mr.Kamran amounted to Rs.7000 of which Rs.5000 was settled by
issuing a cheque for Rs.3800 and avaied of discount.
May 10: Purchased merchndise for Rs.7000 of which Rs.3000 was paid in cash and balance
was paid by cheque.
May12 : Mr.Habeeb withdrew cash from bank Rs.2000 to py a bill for his medical tests.
May15: Sold merchandise for cash Rs.9000 of which Rs.7000 was deposited into bank.
May20: Withdrew from bank Rs.5000 for office use.
May 28: Paid for telephone bill for the month Rs.4000 in cash.
May 31: Paid by cheque salaries for the month Rs.12000.
 Homework
Mr. Asad a sole proprietor, uses a three column cash book. On March 1,1983 cash on hand was Rs.18000 and cash in bank
Rs.20500.During the month, he completed the following transactions.
March
1 Issued a cheuqe for Rs.500 for establishing a petty cash fund.
3 Received a cheque for Rs.4900 from Mr.Ghani in full settlement of his account of Rs.5000.
5 Deposited Mr.Ghani’s cheque into bank.
7 Issued a cheque for Rs.2940 to Sunrise Company in full settlement of his account of Rs.3000.
8 Issued a cheque for Rs.4000 in payment of Bill of Exchange.
11 Sold merchandise for cash Rs.10500 of which Rs. 6 500 was deposited into bank.
15 Purchased merchandise for Rs.8000 for which Rs.2000 was paid in cash and a cheque was issued for the balance of
Rs.6000.
18 Withdrew cash from bank for use in office Rs.3000.
22 Withdrew cash from bank for personal use of the proprietor Rs.1500.
25 Collected Rs.5000 cash at maturity of a Bill receivable.
31 Paid salaries to employees Rs.5000 in cash.
31 Issued a cheque for Rs.450 to replenish Petty Cash fund.