Please explain the entry in cash book of jan 20 and explain how....
2007
Jan 1 Cash in Hand
Cash at Bank
5 Received a cheque from Naresh
8 Cheque Received from Naresh endorsed to Suresh in full settlement of his account of Rs 1,050
10 Paid Life insurance premium of Mr.Mohan
13 Received a cheque from Pawan in full settlement of his account of Rs 750
16 Pawan's cheque returned dishonoured by bank
20 Deposited into Bank, balance of cash in excess of Rs 250
[Chandigarh 2008]
[Ans . cash balance Rs 250, Bank balance Rs 6,850 ;Discount Dr.Rs 50:Discount Cr Rs Nil]
Dear Student,
First of all you have to pass all the transactions into cash book except Jan.20 and calculate a rough balance of cash and then after retaining Rs. 250 rest amount should be deposited into bank A/c.
For example if after all transactions cash book shows a balance of Rs. 2,000, then Rs 1,750 (2,000-250) should be deposited in bank.
Regards
First of all you have to pass all the transactions into cash book except Jan.20 and calculate a rough balance of cash and then after retaining Rs. 250 rest amount should be deposited into bank A/c.
For example if after all transactions cash book shows a balance of Rs. 2,000, then Rs 1,750 (2,000-250) should be deposited in bank.
Regards