1. © Dhruv P Patel
Ans. Cash book is a type of subsidiary book in
which cash receipts and cash payments
transactions are recorded and at the end of the
given period cash balance can be known from
cash book. Cash book serves the purpose of
journal entry and cash account both.
 Usefulness of cash book/utilities of cash book
Explain the meaning of cash book and clarify its
usefulness.

2. © Dhruv P Patel
(1) When the cash book is maintained, cash account need not be
prepared in the ledger, which ultimately saves the time and labor.
(2) Cash book is prepared separately from the journal, so work can be
assigned to some more reliable person.
(3) Transactions relating to cash, bank and discount can be recorded
and summarized with the help of cash book.
(4) If the cash balance from cash book is worked out on daily basis,
then if any error, in the actual cash balance and balance as per cash
book, can be found out immediately.
(5) Different types of cash books can be prepared as per the
requirement, convenience and volume of the business.

3. Std – 11
© Dhruv P Patel
Record the following transactions in the cash book of Shlok :
Opening cash balance Rs. 8,000.1-Mar
2003
Old cycle of Rs. 600 is purchased for business.30-Mar
Rs. 1,000 received towards commission.28-Mar
Machine of Rs. 3,500 purchased for business.25-Mar
Vairagi paid Rs. 1,500 for goods sold to her in the previous month.23-Mar
Rs. 2,000 paid to Mausam for goods purchased in the pre month.19-Mar
Salary of Rs. 1,000 and brokerage of Rs. 1,500 are paid by cash11-Mar
Goods of Rs. 5,000 purchased from Kavita by cash.9-Mar
Goods of Rs. 6,000 sold to Manali for cash.7-Mar
Cash of Rs. 2,000 brought in the business, as more funds are required.5-Mar
Cash purchases Rs. 4,000.3-Mar
Cash sales Rs. 3,000.2-Mar

4. © Dhruv P Patel
Aril 1 3,900Balance b/f
2003
21,50021,500
3,900Balance c/f31
17,600
21,500
600Vehicle A/c30
3.500Machine A/c251,000Commission A/c28
2,000Mausam A/c191,500Vairagi A/c23
1,500Brokerage A/c116,000Sales A/c7
1,000Salary A/c112,000Capital A/c5
5,000Purchase A/c93,000Sales A/c2
4,000Purchase A/c3-Mar8,000Balance b/f.Mar. 1
20032003
Rs.F.No.(Particulars)Rs.F.No.(Particulars)
Amt.L.V.Payments
Date
Amt.LR.Receipts
Date

5. © Dhruv P Patel
21,500
17,600
21,500
600Vehicle A/c30
3.500Machine A/c251,000Commission A/c28
2,000Mausam A/c191,500Vairagi A/c23
1,500Brokerage A/c116,000Sales A/c7
1,000Salary A/c112,000Capital A/c5
5,000Purchase A/c93,000Sales A/c2
4,000Purchase A/c3-Mar8,000Balance b/f.Mar. 1
20032003
Rs.F.No.(Particulars)Rs.F.No.(Particulars)
Amt.L.V.Payments
Date
Amt.LR.Receipts
Date
21,500
21,500

6. Std – 11
© Dhruv P Patel
Rs. 225 paid to Vepari Mahamandal towards annual fees. Ans.29
Godown rent of Rs. 600 paid by cash and carriage of Rs. 100 paid to Shambhu
by cash.
27
A machine of Rs. 6,000 is purchased, for which Rs. 2,000 is paid by cash and it
is decided that the remaining amount will be paid after one month.
23
As more funds are required in the business, household furniture of Rs. 3,000 is
sold for Rs. 3,500 and Rs. 2,500 brought in the business.
19
Goods of Rs. 5,000 sold at 10% trade discount and 5% cash discount.18
Salary of Rs. 1,000 and wages of Rs. 600 are paid by cash.17
Cash of Rs. 1,400 paid to Radha in full settlement of account of Rs. 1,420.15
Commission of Rs. 100 and brokerage of Rs. 900 are received.13
Cash of Rs. 2,000 paid to Prabhat in full settlement of his account of Rs. 2,010.10
Goods of Rs. 4,000 purchased at 5% cash discount.5
Goods of Rs. 3,000 sold at 10% trade discount.4
Goods of Rs. 4,000 sold at 10% cash discount.3
Opening cash balance Rs. 5,500.1April
2003
From the following transactions, prepare cash and discount columnar
cash book of Parag.

7. Std – 11
© Dhruv P Patel
Cash of Rs. 1,000 deposited in the bank.30
Karishma issued a cheque of Rs. 3,000, which is immediate deposited in the bank.29
Vidhya has been paid Rs. 1,800 towards full settlement of an old account.26
Bipasha paid cash of Rs. 2,550 towards her debt.24
Goods of .Rs. 4,500 purchased for cash at 10% trade discount.21
Shop rent is paid.19
Rs. 2,000 withdrawn from the bank for payment of shop rent.17
Salary of Rs. 1,000 and commission of Rs. 500 are paid by cheque.14
Goods of Rs. 5,000 purchased and amount is paid by cheque.12
Rs. 1,500 withdrawn from the bank for personal use.10
Rs. 600 paid towards salary and Rs. 100 paid towards brokerage by cash.6
Goods of Rs. 6,000 sold to Vivek. paid Rs. 4,000 by cash and remaining
amount is paid by cheque, which is deposited in the bank.
4
Goods of Rs. 5,000 sold to Madhuri at 10% trade discount. Madhuri issued cheque
for necessary amount, which is immediately deposited in the bank.
2
Opening cash balance Rs. 3,000, opening bank balance Rs. 6,000.1May
2003
From the following transactions, prepare cash and columnar cash book of Rinku.

8. © Dhruv P Patel
12
Feb
Balance b/f.
200
3
1,700
4,4004,400
1,700l l
2001003002008005006002,700Balance c/f
20020011
100100Manoj A/c10
Misc. exp. A/c9
300300Chief cashier A/c
exp. A/c8
200200Tea and Refreshment7
100100Stationery exp. A/c5
800800Wages A/c
stamps exp. A/c4
5005001,000Postage and postal
Wages A/c and carriage A/c.3
Chief cashier A/c.1900
Opening balance1500
Feb3 200
3
Other
misc.
exp.
Tea &
ref.
Statione
ry
Postag
e
Carria
ge
Wage
s
Individ
ual
accoun
t in
ledger
L
.
F.
Particulars of Various expenses
Total Amt.
Paid
Vouc
her
No.
ParticularsDateReceipts
Rs..

9. Std – 11
© Dhruv P Patel
1 Cash balance Rs. 7,000, Bank overdraft Rs. 2,500.
2 Goods of Rs. 7,000 sold to Kinnari against which a cheque of necessary amount is received.
3 Cheque issued by Kinnari is deposited in the bank.
4 Goods of Rs. 2,000 sold to Ashok at 10% trade discount. Ashok paid 50% of the amount by cash and remaining amount is
immediately paid by cheque.
5 Rs. 2,000 deposited in the bank.
7 Machine of Rs. 5,000 is purchased and cheque of necessary amount is issued.
9 Mansi issued a cheque of Rs. 6,000 towards payment of sales made in the previous month, which is immediately deposited
in the bank.
11 Rs. 500 for wages, Rs. 500 for telephone bill and Rs. 1,200 for electricity bill are paid by cheques.
13 Rs. 2,000 withdrawn from the bank for payment of telephone bill.
14 Telephone bill of Rs. 1,600 is paid.
21 Bank debited our account by Rs. 150 for interest on overdraft and Rs. 100 for bank charges in our account, which is
informed through bank advice.
23 Goods of Rs. 3,000 is sold to Viram, for which he issued a crossed cheque of necessary amount.
24 Cheque of Rs. 3,000 received from Tejal, which is endorsed in favour of Sejal.
25 Bank informed that cheque issued by Viram is dishonoured.
26 Rs.1,500 paid by cash to Ramanuj in full settlement of account
28 Rs. 2,000 withdrawn from the bank for personal use.