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
 

  • 0
First u need to count all the debit cash column and then count the cash column on the cresit side and then substract it and then substract 250 from it and then the amount which come after all these calculations is to be submitted in the bank. And this is how this entry is to be done. Hope this helps!
  • 2
What are you looking for?