DK Goel Solutions Chapter 11 Books of Original Entry – Cash Book
Read below DK Goel Solutions Class 11 Chapter 11 Books of Original Entry Cash Book. These solutions have been prepared based on the latest Class 11 DK Goel Accountancy book issued for the current year and the questions given in each chapter.
In this chapter of DK Goel Accounting Solutions Class 11, explain various concepts relating to cash books, what they mean, and their importance. It also provides basic steps on how to prepare cash books.
The chapter also includes lot of good quality problems or questions which can be very helpful to understand the concepts for Class 11 students of Accountancy and will also help build a strong foundation.
DK Goel Solutions Class 11 Chapter 11 solutions are free and will help you to prepare for Class 11 Accountancy
Books of Original Entry – Cash Book DK Goel Class 11 Accountancy Solutions
Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 11
Short Answer Questions for DK Goel Solutions Class 11 Chapter 11
Question 1: What is Sub-division of Journal?
Solution 1: For any type of transactions, it is useful to keep a different book, one to record cash transactions, another to record credit purchases of goods, and still another to record credit sales of goods.
All these books ( DK Goel Solutions Class 11 Chapter 11 )are referred to as initial entry books or main entry books or subsidiary books – it is a special type of Journal, a Journal sub-division.
Question 2: Name the various books of original entries.
Solution 2: Original entries are recorded in the below books:-
- Cash Book
- Purchases Book
- Sales Book
- Purchases Return Book
- Sales Return Book
- Bills Receivable Book
- Bills Payable Book
- Journal Proper
Question 3: Elucidate the following statements:-
(a) ‘Only cash transactions are recorded in Cash Book’.
(b) ‘Cash Book is both Journal and Ledger’.
Solution 3: (a) Only monetary transactions are reported in the Cash Book, since this book documents only cash or bank-related transactions. The cash book almost still reflects a debit balance.
Since cash transfers cannot surpass cash receipts, the cash column in the cash book cannot display a credit balance. If the overall cash receipt is equal to the total bill, it will display zero balance at most.
(b) As cash Book is a book in which all transactions relating to cash receipts and cash transfers are registered, Cash Book is both Journal and Ledger. At the start of the cycle, it begins with cash or bank accounts.
Question 4: How does a Cash Book serve ‘Dual Purpose’?
Solution 4: As an original book and a ledger, the Cash book plays both roles. The Cash Book serves the dual purpose of the original entry or both books and the Ledger.
If we create a cash book, there is no need to create a separate cash account. A transaction is recorded in a cash book or cash account only if there is either cash inflow or cash outflow. The cash book therefore has a dual purpose.
Question 5: What is Contra entry? How will you recognise it from among other entries in Cash Book?
Solution 5: Some transactions are reported in a Two-Column Cash Book that refers to both cash and money, i.e. the balance of one will drop and, owing to such transactions, the other will increase.
Certain transactions are entered on all sides of the Cash Book. Against such entries, the letter ‘C’ is written in the L.F. column to indicate that these are contra transactions and are not posted into the Ledger Account.
(a) Cash deposited into the Bank 10,000
(b) Cash withdrawn from Bank for Office Use 1,000
Question 6: State three advantages of Sub-Division of Journal.
Solution 6: The three advantages of Sub-Division of Journal are:-
(i) Division of work by capacity.
(ii) Ease of posting.
(iii) Save Time
Question 7: Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
(i) Deposit of Cash into Bank
(ii) Withdrawal of money from Bank for office use.
(iii) Deposit of cheque (received from other) into Bank.
(iv) Dishonour of cheque deposited into Bank.
Solution 7:
(i) Deposit of Cash into Bank:-
In the aforementioned trade, a cash account and a bank account are also influenced by the account. It is also contra-entry since all accounts are influenced concurrently by cash and bank.
Bank a/c Dr.
To Cash A/c
(ii) Withdrawal of money from bank for office use:-
In the aforementioned trade, a cash account and a bank account are also influenced by the account. It is also contra-entry since all accounts are influenced concurrently by cash and bank.
Cash a/c Dr.
To Bank A/c
(iii) Deposit of cheque (received from other) into Bank:-
On the debit side “To Cheque-in-hand a/c” and on credit side “By Debtors a/c” with the same amount recorded.
Cheque-in-hand A/c
To Debtors A/c
(iv) Dishonour of cheque deposited into Bank:-
On the credit side “By Debtor a/c” and amount will be credited into the bank account.
Debtor a/c Dr
To Bank a/c
Question 8: (i) Give the similarities of Cash Book with Journal.
(ii) Give the similarities of Cash Book with ledger.
Solution 8
(i) Similarities of Cash Book with Journal:-
- The transactions in the cash book are documented from source records for the first time, much like a report.
- Transactions in the cashbook are reported date-wise, i.e. in a chronological order, when and when they are put, much like a document.
- Much as a log, cash book transfers are often posted in the ledger to the related accounts.
- A cash book also includes a ledger folio column, much like a journal.
(ii) Similarities of cash book with ledger:-
- The sort of cash book closely resembles the account of a ledger. Having similar columns, it has two evenly separated sides. The left side (receipt side) is the debit side and the credit side is the right side and the credit side is the right side (payment side).
- The cash book itself often functions as a cash account and as such, when a cash book is held, the cash account is not opened in the ledger. The cash book, however, is indeed a part of the ledger.
- In a cash book, much like a ledger account, the words ‘To’ and ‘By’ are sometimes used.
- Much like a ledger account, it is balanced.
Question 9: What are Contra Entries? Why these are not posted into the Ledger?
Solution 9: Contra entries indicate entries on both sides of the cash book that are registered. When depositing or withdrawing money from the bank, these entries are made.
The two accounts, the cash account and the bank account, are influenced by Contra entries. In the Cash Book, these two accounts appear together only so that the result of entries is fulfilled in the Cash Book and there is no need to post them in the ledger.
Question 10: Explain the Statement ‘Cash book is a journalised Ledger’.
Solution 10: Cash book is a journalised Ledger, it is a log because it first documents cash and bank transfers in it and a ledger since it often fits the function of a cash account. No distinct cash account is opened in the ledger when a cash book is prepared.
Question 11: Distinguish between Cash Book and Cash A/c.
Solution 11:
Cash Book | Cash Account |
The Cash Book is a prime entry book that documents cash and bank transfers in a linear order, i.e. when they occur.In the debit side of the cash ledger, cash refunds are registered as well as cash transfers on the credit side. | A cash account is a ledger account that is used to document the company’s day-to-day cash transactions.Cash receipts are recoded and or other side cash transfers are reported on the debit side of the account. |
Question 12: What is a Petty Cash Book?
Solution 12: The book used for the purpose of tracking expenses containing minor sums is the Petty Cash Book. In addition to minor expenditures, principal cash receipts are reported.
The Petty Cash Book is prepared by the Petty Cashier which is the Petty Cash Account. In addition to large payments, it is retained as in a company, it is important to make a variety of minor payments, such as conveyance, stationary, cartage, etc.
Question 13: Prepare a proforma of Petty Cash Book with imaginary figures.
Solution 13:

Question 14: What is an imprest system of Petty Cash Book?
Solution 14: The Petty Cash imprint scheme is discussed below. Under this method, the amount needed for minor expenditures for a certain time is determined (say for a week, a fortnight or a month). At the beginning of an era, the amount so calculated is issued to the petty cashier and the amount charged by him during the period is repaid.
Numerical Question DK Goel Solutions Class 11 Chapter 11 :-
Question 1: Enter the following transactions in a Single Column Cash Book∶−
2020 | (Rs.) | |
1 | Commenced business with cash | 25,000 |
3 | Bought goods for Cash | 10,000 |
3 | Paid Carriage | 200 |
4 | Sold goods for Cash | 6,000 |
10 | Received from Ram | 1,000 |
12 | Paid to Shiv Kumar | 2,600 |
15 | Cash Sales | 8,400 |
18 | Purchased furniture for cash for office | 5,000 |
20 | Paid for Advertisement | 500 |
20 | Purchased goods from Mahesh on credit | 6,000 |
24 | Paid to Mahesh | 4,000 |
25 | Paid Wages | 400 |
27 | Received for Commission | 1,500 |
28 | Withdrew for personal use | 2,200 |
31 | Paid salary | 700 |
Solution 1:

Point in Mind:- The Cash Book Balancing is done like every other account. The debit column is often bigger than the credit column.
Question 2: Enter the following transactions in M/s Mukerjee & Bros. Single Column Cash Book:
2020 | (Rs.) | |
1 | Balance of Cash in hand | 50,000 |
3 | Purchased goods for cash | 22,000 |
7 | Purchased goods | 15,000 |
10 | Purchased goods from Gopi on credit | 30,000 |
13 | Purchased goods from Gopi for cash | 10,000 |
15 | Sold goods | 20,000 |
18 | Sold goods to Vishwakarma on credit | 45,000 |
20 | Sold goods to Raghunandan for cash | 18,000 |
25 | Received commission | 5,000 |
30 | Paid Rent |
Solution 2:

Point in mind:-
Only currency transfers are reported in the cash book. There is no recording of credit transfers. The debit side is still higher than the credit, since the cash available is never surpassed by transfers.
Question 3: Enter the following transactions in a Single Column Cash Book:-
Feb. 2019 | (Rs.) | |
1 | Mr. Vipin commenced business with Cash | 2,00,000 |
3 | Opened a Bank Account and deposited | 75,000 |
5 | Purchased goods for Cash | 30,000 |
7 | Purchased goods | 15,000 |
10 | Purchased goods from Surya Kant | 40,000 |
12 | Paid to Surya Kant | 38,800 |
Discount received | 1,200 | |
15 | Paid Wages in Cash | 22,500 |
16 | Paid to casual labour | 1,500 |
20 | Sold goods to Dev Raj for Cash | 80,000 |
25 | Paid electricity bill in Cash | 12,000 |
26 | Withdrew Cash from Bank | 40,000 |
27 | Received for Cash sales | 5,000 |
27 | Paid for miscellaneous expenses | 500 |
Solution 3:

Question 4: Enter the following transactions in a Single Column Cash Book:-
2019 | (Rs.) | |
Dec. 1 | Cash-in-hand | 25,000 |
2 | Cash Sales (CGST 6%, SGST 6%) | 40,000 |
4 | Received from X on behalf of Y | 4,000 |
9 | Paid to Som Pal | 4,900 |
Discount Received | 100 | |
12 | Received from Vijay Kumar | 7,800 |
and discount allowed | 200 | |
20 | Bought goods for Cash (CGST 6%, SGST 6%) | 20,000 |
21 | Paid Cartage (CGST 6%, SGST 6%) | 1,000 |
23 | Remitted to Dharamvir | 1,880 |
and discount allowed by him | 120 | |
25 | Received M.O. from Mohan | 500 |
27 | Borrowed from Mahabir | 7,500 |
29 | Received from Bhushan | 3,900 |
discount allowed | 100 | |
31 | Paid to Lalit Rs. 2,700 in full settlement of his account of Rs. 3,000 |
Solution 4:

Question 5: Enter the following transactions in a Single Column Cash Book of M/s Suchitra Sen & Co.
2020 | (Rs.) | |
1 | Cash in Hand | 1,20,000 |
2 | Bought machinery for Rs. 60,000 and paid carriage | 2,000 |
4 | Bought goods for Rs. 25,000 and paid carriage | 1,000 |
5 | Bought goods from Ravi Das | 15,000 |
6 | Cash received from the sale of Motorbike | 5,000 |
8 | Sold goods for cashless 5% cash discount | 20,000 |
10 | Sold goods | 40,000 |
12 | Paid to Ravi Das on account | 10,000 |
15 | Bought goods from Suresh for cashless 4% cash discount | 30,000 |
20 | Paid to Ravi Das | 4,500 |
Discount received | 500 | |
25 | Cash collected from Ashok (Debtor) | 10,000 |
28 | Purchased postal stamps | 500 |
28 | Salary paid to an accountant | 15,000 |
Solution 5:

Question 6: Write up Cash Book of Bhanu Partap with Cash and Bank Columns from the following transactions:−
2020 | DK Goel Solutions Class 11 Chapter 11 | (Rs.) |
Mar-01 | Cash-in-hand | 2,710 |
Cash at Bank | 27,500 | |
3 | Received from Subhash | 3,500 |
4 | Sold goods for cash | 10,000 |
7 | Paid Rent by Cheque | 800 |
8 | Paid Sohan by cheque | 3,000 |
10 | Bought goods for cash | 15,000 |
12 | Paid cash for stationery | 200 |
Drew from Bank for office use | 8,000 | |
15 | Received cheque from Surendra and sent it to Bank | 6,600 |
16 | Paid for advertisement | 750 |
18 | Issued cheque in favour of Nath Brothers | 4,300 |
19 | Cash Sales | 13,000 |
Paid into Bank | 16,000 | |
20 | Received cheque from Vinod and sent it to Bank | 2,400 |
22 | Bought Scooter and paid for the same by cheque | 18,000 |
25 | Bank returned Surendra’s cheque dishonoured | |
28 | Paid salary by cheque | 7,200 |
Paid Trade expenses | 2,000 | |
29 | Cash sales | 9,500 |
30 | Paid into Bank | 10,000 |
Solution 6:

Question 7: Prepare Two Column Cash Book from the following transactions and balance the book on 31st Jan., 2020:-
2020 | DK Goel Solutions Class 11 Chapter 11 |
Jan. 1 | Cash in hand Rs. 50,000; Bank overdraft Rs. 1,90,000. |
Jan. 2 | Purchased goods from Rajesh Kumar of the list price of Rs. 50,000 at 5% trade discount and payment made by cheque. |
Jan. 6 | Goods sold for Rs. 80,000 and payment received by cheque. Cheque deposited into Bank on same day. |
Jan. 10 | Goods purchased for cash Rs. 19,800. |
Jan. 15 | Furniture sold for Rs. 1,77,000 and payment received by cheque & cheque deposited into Bank on same day. |
Jan. 18 | Salaries paid Rs. 4,500. |
Jan. 21 | Settled the amount due to Ram Rs. 2,000 by paying cash Rs. 1,910. |
Jan. 22 | Cash received from Jai Rs. 14,780 in full settlement of his account of Rs. 15,000. |
Jan. 23 | Paid Life Insurance premium Rs. 1,500. |
Jan. 31 | Deposited with bank the entire balance after retaining Rs. 7,000 cash in hand. |
Solution 7:

Question 8 (A): Enter the following particulars in the Cash Book with Cash and Bank columns:−
2016 | |
Apr-01 | Balance of cash in hand Rs. 2,000 and at Bank Rs. 12,000. |
3 | Received cash from Madhav Rs. 1,800. |
5 | Cash Sales Rs. 1,000 |
6 | Purchases by cheque Rs. 745. |
9 | Paid into Bank Rs. 1,850. |
10 | Paid cash for freight Rs. 54. |
12 | Drew from Bank for office use Rs. 600. |
13 | Issued a cheque in favour of M/s Arun & Sons for Rs. 985. |
16 | Paid into Bank Rs. 715. |
17 | Drew Cash for his son’s birthday party Rs. 175. |
19 | Received a cheque from Navin for Rs. 380 and deposited it into bank on the same day. |
20 | Cash Sales Rs. 200. |
25 | Drew from Bank for office use Rs. 200. |
26 | Purchased furniture for Rs. 1,000 and payment made by cheque. |
27 | Navin’s cheque dishonoured, Bank charges Rs. 5. |
29 | Purchased business premises, payment made by cheque Rs. 12,000. |
30 | Received cheque for Rs. 675 from Harish. |
Solution 8(A):

Question 8 (B): Enter the following transactions in the Cash Book with Cash and Bank Columns:−

Solution 8 (B):

Working Note:-

Question 9: Enter the following transactions in the Cash Book with Cash and Bank Columns ∶−
2019 | |
Apr-01 | Balance of Cash in hand Rs. 4,000, overdraft at Bank Rs. 50,000. |
Apr-04 | Invested further capital Rs. 1,00,000 out of which Rs. 60,000 deposited into the bank. |
Apr-05 | Sold goods for cash Rs. 30,000 plus CGST and SGST @ 6% each. |
Apr-10 | Purchased goods Rs. 55,000 plus CGST and SGST @ 6% each and issued a cheque for the same. |
Apr-11 | Paid to Ram Vilas, our creditor Rs. 25,000; discount allowed by him Rs. 1,000. |
Apr-14 | Rent of Rs. 8,000 plus CGST and SGST @ 6% each paid by cheque. |
Apr-15 | Office Furniture purchased and a cheque of Rs. 22,400 issued for the same including CGST and SGST @ 6% each. |
Apr-16 | Drew cheque for personal use Rs. 5,000. |
Apr-18 | Collection from Atul Rs. 15,000, deposited in the bank on 19th April. |
Apr-20 | Goods sold to Amritraj for Rs. 80,000 plus CGST and SGST @ 6% each. |
Apr-25 | Received a cheque of Rs. 88,000 from Amritraj in full settlement of his account; deposited into bank on 28th April. |
Apr-29 | Drew from the bank for salary of the office staff Rs. 25,000. |
Apr-29 | Paid salary of the manager by cheque Rs. 10,000. |
Solution 9:

Working Note:- On 20th April, Entry for Credit sales of Rs. 80,000 plus CGST and SGST @ 6% each will he recorded in journal.

Question 10 (A): Write the following transactions in a Two Column Cash Book and balance the Cash Book:−
2020 | (Rs.) | |
Jan. 1 | Cash in hand | 6,000 |
Bank Balance (Cr) | 3,000 | |
3 | Deposited into Bank | 2,000 |
5 | Received from Mohan | 400 |
Discount allowed | 10 | |
7 | Received a cheque from Hari and sent it to bank | 600 |
9 | Received a cheque from Prem Mohan | 1,600 |
Discount allowed | 25 | |
12 | Withdrew from bank for office use | 300 |
13 | Bought goods for cash | 600 |
14 | Sold goods for cash | 1,200 |
16 | Paid to Ganesh by cheque | 494 |
Discount received | 6 | |
18 | Prem Mohan’s cheque deposited in the bank | |
20 | Sold goods to Gopal for Rs. 1,500 for which he gave cash Rs. 800 and a cheque of Rs. 700. | |
22 | Deposited into bank (including Gopal’s cheque) | 900 |
24 | Paid rent by cheque | 150 |
25 | Withdrew from bank for personal use | 200 |
28 | Bank notifies that Prem Mohan’s cheque was dishonoured | |
30 | Received from Anil Rs. 270 in cash and Rs. 540 by cheque. | |
Discount Allowed Rs. 90. | ||
The cheque was deposited into bank. | ||
31 | Bank charges as shown in Pass Book | 5 |
Paid Salary | 500 |
Solution 10 (A):

Working Note:- 1. Cheque received from Prem Mohan on 9th and from Gopal on 20th will be recorded through Journal. These will be recorded in the Cash Book on the dates of their deposit into the Bank.
Question 10 (B): Prepare a Two Column Cash Book from the following transactions∶−
2020 | |
May-01 | Cash at office Rs. 72. |
Bank overdraft Rs. 1,250. | |
4 | Received from Prem Chand a cheque for Rs. 1,875 in full settlement of his account of Rs. 1,900. The cheque was banked on the same day. |
5 | Bought goods and paid by cheque Rs. 500. |
6 | Narinder settled his account of Rs. 700 by a cheque. This was banked on the same day. |
9 | Paid to Manohar Lal by a cheque for Rs. 420. Discount received Rs. 80. |
12 | Cash sales to date Rs. 400 of which Rs. 300 were banked. |
17 | Sold old typewriter for cash Rs. 320. |
20 | Received a cheque for Rs. 400 from Naresh in full settlement of his account of Rs. 460. The cheque is endorsed to Suresh on 24th May in full settlement of his account of Rs. 420. |
25 | Received a cheque from Hari Prakash for Rs. 150. The cheque is endorsed to Raj Prakash on 27th May; Discount received Rs. 30. |
28 | Withdrew from Bank for office use Rs. 100 and for personal use Rs. 100. |
29 | WIthdrew (from office) for payment of private bills Rs. 425. |
30 | Paid by cheque salaries Rs. 160 and rent Rs. 100. |
31 | Bank charges as per Pass Book Rs. 5. |
Solution 10 (B):

Working Note:-

Question 11 (A): Enter the following transactions in the Two Column Cash Book of Mr. Mohan:-
2018 | (Rs.) | |
Jan. 1 | Cash in Hand | 2,200 |
Cash at Bank | 50,000 | |
3 | Purchased goods for Rs. 75,000; Trade Discount 20%; CGST 6%, SGST 6%; Payment made by Cheque | |
4 | Sold goods for Rs. 40,000; Trade Discount 15%; IGST 12%; Payment received by Cheque | |
5 | Received a cheque from Naresh | 1,000 |
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 | 100 |
13 | Received a cheque from Pawan in full settlement of his account of Rs. 750. | 700 |
16 | Pawan’s cheque returned dishonoured by bank | – |
20 | Deposited into Bank, balance of Cash in excess of Rs. 250 |
Solution 11 (A):

Working Note:-

Question 11 (B): Enter the following transactions in a Two Column Cash Book:-
2019 | (Rs.) | |
Dec. 1 | Started business with cash | 50,000 |
2 | Pays into Bank | 29,000 |
3 | Received cheque from Raja & Co. | 800 |
Discount allowed | 20 | |
5 | Withdrew cash from bank for private use | 240 |
10 | Purchased goods for Rs. 1,00,000; IGST 18%; Payment made by Cheque | |
12 | Sold goods for Rs. 1,50,000; Trade Discount 20%; IGST 18%; Payment received by Cheque | |
14 | Received cheque from Kamla | 395 |
Discount allowed | 15 | |
16 | Kamla’s cheque endorsed to Bala in full settlement of her account of Rs. 425 | |
29 | Paid rent by cheque | 1,000 |
30 | Deposited into bank, balance of cash in excess of | 450 |
Solution 11 (B):

Working Note:-

Calculation of Cash deposit into the Bank:-
Cash deposit into bank = Bal. of cash column of Dr. side – Total of Cash Column of Cr. side + Cash Bal.
Cash deposit into bank = 50,000 – 29,000 + 450
Cash deposit into bank = 50,000 – 29,450
Cash deposit into bank = 20,550
Question 12: Enter the following transactions in the Cash Book with Cash and Bank Columns∶−
2019 | |
Jun-01 | Balance of Cash in Hand Rs. 12,000; Overdraft at Bank Rs. 1,500. |
2 | Deposited into Bank Rs. 10,000. |
Sold goods for Cash Rs. 28,000 and paid half the proceeds into Bank. | |
3 | Purchased goods for Rs. 7,000 from Manoj & Co. on Credit. |
5 | Received a Money Order from Suresh Rs. 500. |
8 | Received Rs. 2,800 from Govind. Paid Rs. 1,000 into Bank. |
10 | Received a cheque for Rs. 7,600 from Subhash in full settlement of Rs. 8,000 due from him. |
12 | Settled the account of Manoj & Co. by payment of Rs. 6,600 |
half Cash and half by cheque. | |
13 | Cheque received from Subhash deposited into Bank. |
15 | Paid for purchase of Machinery by cheque Rs. 20,000. |
16 | Paid wages for the erection of above Machinery Rs. 1,000. |
17 | Cheque issued for Rs. 6,000 in favour of Sachdeva & Co. for purchase of furniture. |
20 | Purchased goods from Kalpna Garments for Rs. 10,500 on credit. |
Received a Bank Draft for Rs. 4,800 from Damodar & Co. in full settlement of Rs. 5,000 due from them. Sent the draft to bank. | |
24 | Bank issued a draft for Rs. 10,000 in favour of Kalpna Garments on our request. Bank charged Rs. 25 for issuing the draft. Account of Kalana Garments was fully settled. |
26 | Drew from bank for petty cash Rs. 100. |
28 | Paid salary by cheque Rs. 6,000. |
30 | Bank Charges Rs. 50 and Interest Rs. 1,620 charged by bank. |
Deposited into bank the entire balance after retaining Rs. 4,000 at office |
Solution 12:

Working Note:-

Calculation of Cash Deposit into Bank:-
Cash deposit into bank = Bal. of cash column of Dr. side – Total of Cash Column of Cr. side + Cash Balance
Cash deposit into bank = 28,300 – 14,300 + 4,000
Cash deposit into bank = 28,300 – 18,300
Cash deposit into bank = 10,000
Question 13 (A): Prepare a Cash Book with Cash and Bank Columns from the following transactions:−
2017 | |
Mar-01 | Cash in hand Rs. 1,800 and at Bank Rs. 11,000. |
5 | Received a cheque for commission Rs. 3,960. Cheque was immediately deposited into bank. |
7 | Bought goods for cheque Rs. 7,000. |
8 | Bought goods for cash Rs. 500. |
10 | Purchased a Computer and payment made by cheque of Rs. 5,000. |
14 | Paid Trade Expenses Rs. 105. |
16 | Paid into Bank Rs. 1,000. |
18 | Ramesh who owed us Rs. 500 became bankrupt and paid us 50 paise in a Rs.. |
20 | Received Rs. 400 from Manohar and allowed him discount Rs. 10. |
23 | Withdrew from Bank Rs. 400. |
23 | Paid Rs. 300 to Ghanshyam Dass & Co. They allowed us discount Rs. 10. |
24 | Received Rs. 2,000 from Hari Ram and deposited the same into Bank. |
25 | Withdrew from Bank for private expenses Rs. 300. |
27 | Sold goods for cash Rs. 200. |
28 | Received cheque for goods sold Rs. 9,000. |
29 | Received repayment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of it into Bank. |
30 | Bank charges as per Book Rs. 5. |
Solution 13 (A):

Question 13 (B): From the following transactions, prepare Cash Book with Cash and Bank Columns:−

Solution 13 (B):

Working Note:-
May 6th : Life Insurance Premium is treated as Drawings.
May 12th : Entry for receipt of cheque will be recorded in Journal Proper.
May 15th : To cheque in hand a/c Rs. 28,000 in bank column
May 18th : by Varun Rs. 28,025 in Bank Column, Entry for discount withdrawn Rs. 2,000 will be passed through Journal Proper.

Calculation of Cash Deposit into Bank:-
Cash deposit into bank = Bal. of cash column of Dr. side -Total of Cash Column of Cr. side + Cash Balance
Cash deposit into bank = 36,700 – 24,200 + 5,000
Cash deposit into bank = 36,700 – 29,200
Cash deposit into bank = 7,500
Question 14: Compile a Two Column Cash Book from the following transactions of Kavita Garments∶−

Solution 14:

Working Note:-

Calculation of Cash Deposit into Bank:-
Cash deposit into bank = Bal. of cash column of Debit side – Total of Cash Col. of Credit side + Cash Bal.
Cash deposit into bank = 23,350—5,400-+-7,500
Cash deposit into bank = 23,350 – 12,900
Cash deposit into bank = 10,450
Question 15: Prepare a Petty Cash Book on the Imprest System from the following:
2020 | |
Apr-01 | Received Rs. 10,000 for Petty Cash. |
3 | Paid Cartage Rs. 800. |
4 | Paid Bus Fare Rs. 400; Speed Post Rs. 200. |
6 | Paid for Stationery Rs. 700. |
7 | Paid for Courier Services Rs. 300. |
9 | Paid for Taxi fare Rs. 800; Wages Rs. 300. |
10 | Paid for Wages Rs. 400; Charity Rs. 500 |
11 | Paid for Newspaper bill Rs. 600. |
12 | Paid for soap Rs. 320; Speed post charges Rs. 300. |
13 | Paid for Postage Rs. 780. |
14 | Paid for Repairs of Chairs Rs. 500. |
15 | Paid for Refreshment to customers Rs. 900. |
Solution 15:

Point in mind DK Goel Solutions Class 11 Chapter 11:–
Petty Cash Book is the book that is used for the purpose of recording expenses involving petty amounts. Besides petty expenses, receipts from main cash are recorded. Petty Cash Book is prepared by Petty Cashier and acts as the Petty Cash Account.
Question 16: Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on imprest system, amount of imprest being Rs. 4,000.
2020 | |
Apr-01 | Petty cash in hand Rs. 540, Received cash to make-up the imprest. |
Paid for office cleaning Rs. 100. | |
Apr-04 | Paid railway fare Rs. 320, bus fare Rs. 280, wages Rs. 150. |
Apr-05 | Bought shorthand notebooks for office Rs. 370. |
Apr-07 | Paid carriage on parcels Rs. 150, paid for wages Rs. 220. |
Apr-10 | Bought stamps for Rs. 300, envelopes for Rs. 450 and an accounts register for Rs. 400. |
Apr-12 | Paid for repairs Rs. 200, gave tips to office peon Rs. 150. |
Apr-13 | Gave charity Rs. 100, served tea to customers Rs. 250. |
Apr-15 | Paid for wages Rs. 160, rewards to servant Rs. 100. |

Working Note:- The imprest system of Petty Cash is explained below. Under this system, an estimate is made of amount required for petty expenses for a certain period (say for a week, a fortnight or a month).
Question 17: Mr. Yadav, the petty cashier of M/s Triputi Traders received Rs.10,000 on April 1, 2016 from the Head Cashier. Following were the petty expenses :−
2016 | (Rs.) | |
April 2 | Taxi fare | 750 |
3 | Refreshments | 450 |
5 | Registered postal charge | 200 |
5 | Wages | 700 |
8 | Auto fare | 200 |
Courier charges | 150 | |
12 | Postal Stamps | 600 |
14 | Eraser/Sharpeners/Pencils | 400 |
17 | Speed Post charges | 200 |
20 | Cartage | 600 |
20 | Computer Stationery | 500 |
22 | Wages | 300 |
24 | Bus fare | 600 |
25 | Office Sanitation | 800 |
26 | Refreshments | 750 |
28 | Loading Charges | 300 |
30 | Photostatting Charges | 200 |
30 | Wages | 800 |
Solution 17:

Point in mind:- Petty Cash Book is the book which is used for the purpose of recording expenses involving petty amounts. Besides petty expenses, receipts from main cash are recorded. Petty Cash Book is prepared by Petty Cashier and acts as the Petty Cash Account.
Question 18: Record the following transactions in a cash book with cash and bank columns :

Solution 18:

Working Note:-

Question 19: Enter the following transactions in two Column cash book and find out the cash and bank balance∶
2020 | (Rs.) | |
Jan. 1 | Started business with cash | 20,000 |
Jan. 2 | Opened a current account with the S.B.I. | 8,000 |
Jan. 3 | Bought goods by cheque | 150 |
Jan. 4 | Received cheque from Ram | 200 |
Jan. 5 | Sold goods for cash | 40 |
Jan. 7 | Paid into bank: | |
(i) Cash Rs. 30 | ||
(ii) Cheque Rs. 200 | 230 | |
Jan. 8 | Paid Shyam by cheque | 345 |
Jan. 8 | Paid carriage by cheque | 180 |
Jan. 10 | Drew cash from bank for office use | 200 |
Jan. 30 | Paid wages by cheque | 60 |
Solution 19:

Question 20: Enter the following transactions in a Cash Book with Cash and Bank Columns:-
2017 | (Rs.) | |
Mar-01 | Commenced business with Rs.1,00,000 of which Rs.20,000 were borrowed from Mr. Ratan | |
2 | Opened current account with Punjab National Bank | 75,000 |
4 | Bought goods by cheque | 60,000 |
5 | Purchased a typewriter for Rs.4,000 and spent Rs.500 on its repairs | |
8 | Paid petty cash expenses | 200 |
10 | Transferred from Current account to Fixed Deposit Account in the Bank | 5,000 |
12 | Sold goods for Cash Rs.25,000 and cheque Rs.15,000 | |
13 | Deposited the above cheque into bank | |
15 | Purchased goods from Ram Singh on Credit | 25,000 |
18 | Settled Ram Singh’s Account by cheque | 24,750 |
20 | Sent a cheque in payment of the fees of Proprietor’s son | 500 |
25 | Cash sales, received a cheque | 4,000 |
28 | Deposited the above cheque into bank, collection charges | 25 |
31 | Repaid the loan taken from Mr. Ratan including interest @ 18% p.a. |
Solution 20:

Working Note:-

Calculation of interest on loan:-
Time for loan = 1 Month
Rate on Interest = 18%
Interest on Loan = Rs. 20,000 × 1/12 × 18/100
Interest on Loan = Rs. 300
Question 21: Enter the following transactions in a Cash Book with Cash and Bank Columns∶-

Solution 21:

Working Note:-

Calculation of Cash Deposit into Bank:-
Cash deposit into bank = Bal. of cash column of Dr. side – Total of Cash Column of Cr. side + Cash Bal.
Cash deposit into bank = 42,650 – 22,250 + 5,000
Cash deposit into bank = 42,650 – 27,250
Cash deposit into bank = 15,400
Question 22: Prepare a Cash Book with Cash and Bank Columns from the following particulars∶−


Working Note:-

Calculation of Cash Deposit into Bank:-
Cash deposit into bank = Bal. of cash column of Dr. side – Total of Cash Column of Cr. side-+-Cash Bal.
Cash deposit into bank = 42,650 – 22,250 + 5,000
Cash deposit into bank = 42,650 – 27,250
Cash deposit into bank = 15,400
Question 23: Mr. Lal operates two bank accounts both of which are maintained in the columnar cash book itself. You are required to prepare a proforma of the cash book, record the following transactions therein and draw the closing balances as on 30th June, 2016:

Solution 23:

Question 24: Mr. Chaturvedi maintains two bank accounts. Prepare his columnar cash book from the following particulars:
2016 | (Rs.) | |
May-01 | Cash in hand | 34,000 |
Balance with Hongkong Bank | 75,200 | |
Balance with Citi Bank | 1,20,000 | |
May-03 | Cash drawn from Citi Bank for office use | 25,000 |
May-08 | Sold goods to Diwedi for Rs. 80,000 and received from him Rs. 20,000 in cash and a cheque for the balance. The cheque is deposited in Hongkong Bank on 9th and the bank credited the amount on 15th and debited Rs. 25 as its collection charges. | |
May-12 | Purchased goods for Rs. 40,000 at 20% trade discount. 25% of the amount is paid in cash and issued a cheque on Citi Bank for the balance amount. | |
May-20 | Paid Wages Rs. 36,000 and Salary Rs. 4,000. | |
May-22 | A cheque for Rs. 50,000 is drawn on Citi Bank and it is deposited in Hongkong Bank. | |
May-23 | Purchased land for Rs. 3,20,000 and a cheque is issued on Hongkong Bank. | |
May-24 | A cheque for Rs. 10,000 which was received from Mohan and was deposited in Citi Bank on 25th April is dishonoured and the bank debited Rs. 100 as bank charges on this cheque. The amount of dishonoured cheque and bank charges is received from Mohan in cash on 25th. | |
May-26 | Deposited cash Rs. 30,000 in Hongkong Bank. | |
May-28 | Sold old typewriter for Rs. 2,000 and old newspapers for Rs. 200 in cash. | |
May-30 | Interest charged by Hongkong Bank Rs. 400. | |
May-31 | Bank charges by Citi Bank Rs. 180 and Hongkong Bank Rs. 340. |
Solution 24:

Working Note ( DK Goel Solutions Class 11 Chapter 11 ):-

Question 25: Prepare a Cash Book with Cash and Bank columns from the following information for the month of December 2011 in the Books of O’Neil:
2019 | |
Dec. 1 | Cash in Hand Rs. 2,780; Bank Overdraft Rs. 3,125. |
2 | Cheque worth Rs. 400 issued to the petty cashier. |
5 | Rs. 350 was paid to Hari & Sons for the supply of stationery on this day. |
7 | Received a cheque worth Rs. 600 from Pramod against sale of goods. |
10 | Received Rs. 1,200 for sale of goods. |
11 | The cheque which was received from Pramod on 7th December was endorsed as favour of Morgan together with Rs. 1,400 in cash. |
15 | Received Rs. 950 from Sheila. |
23 | Murarilal paid Rs. 2,000 in cash and Rs. 3,000 in cheque after receiving a discount of Rs. 200 for goods sold to him in November. The cheque was immediately deposited into the Bank. |
26 | Bought goods worth Rs. 1,700 from Rustom and paid by cheque after receiving a discount of Rs. 170. |
30 | Interest on overdraft Rs. 50 was charged by the Bank. |
30 | Cash in excess of Rs. 1,000 was deposited into the Bank. |
Solution 25:

Working Note:-

Calculation of Cash deposit into the Bank:-
Cash deposit into bank = Bal. of cash column of Dr. side – Total of Cash Column of Cr. side + Cash Bal.
Cash deposit into bank = 50,000 – 29,000 + 450
Cash deposit into bank = 50,000 – 29,450
Cash deposit into bank = 20,550
Question 26: From the following particulars, prepare a Cash Book with Cash and Bank Columns:
2017 | |
Jan. 1 | Balance of Cash in Hand Rs. 15,000 and Bank Overdraft Rs. 6,000 |
3 | Issued a cheque of Rs. 4,800 to Mr. Black and earned a discount of Rs. 200. |
4 | Direct deposit by Mr. Kapil in our bank account Rs.3,800. Discount allowed Rs. 200. |
5 | Given as charity Rs. 100. |
7 | Issued a cheque of Rs. 500 to the petty cashier. |
15 | Goods worth Rs. 10,000 were sold to Ganesh on 10th January. Its payment was received today by cheque after deducting 5% cash discount. |
16 | Deposited the above cheque into Bank. |
17 | Goods purchased from Raghu for Rs. 8,000. Payment is made after deducting 3% cash discount. |
18 | Bought postage stamps Rs. 200. |
20 | Paid Rs. 4,000 by cheque for furniture purchased. |
22 | Arun who owed us Rs. 6,000 became bankrupt and paid 60 paise per Rs.. |
24 | Collected from Anil Rs. 5,000 in cash and deposited into bank the next day. |
24 | Cash purchases of stationery Rs. 200. |
25 | X settled his account of Rs. 7,000 by cheque of Rs. 6,850. |
Cheque was deposited into the bank on 28th January. | |
27 | Settled Y’s account of Rs. 8,000 by cheque after deducting therefrom 21212% cash discount. |
29 | Cash sales for Rs. 10,000, received cheque. |
30 | Interest charged by bank Rs. 1,500. |
Solution 26:

Working Note:-

Question 27: Record the following transactions in a Petty Cash Book drawn with suitable columns and then balance the same:
2017 | (Rs.) | |
Jan. 1 | Petty cashier is given a monthly imprest amount of Rs. 10,000. He spent last month Rs. 9,200 and got the balance from the head cashier today. | |
Jan. 2 | Paid for Wages | 600 |
Jan. 3 | Paid for sundry expenses | 100 |
Jan. 5 | Paid for stationery | 700 |
Jan. 9 | Paid for courier charges | 200 |
Jan. 12 | Stamps purchased | 750 |
Jan. 14 | Paid wages to casual labour | 500 |
Jan. 16 | Stationery purchased | 400 |
Jan. 19 | Paid for general expenses | 610 |
Jan. 20 | Paid for cartage | 800 |
Jan. 22 | Paid for advertising | 900 |
Jan. 24 | Paid for postage | 400 |
Jan. 25 | Paid for Taxi Fare | 840 |
Jan. 27 | Paid for entertainment | 600 |
Jan. 29 | Paid for carriage | 500 |
Jan. 31 | Paid for petty repairs | 700 |
Solution 27:

Working Note:-
The imprest system of Petty Cash is explained below. Under this system, an estimate is made of amount required for petty expenses for a certain period (say for a week, a fortnight or a month).
Question 28: Enter the following transactions in the petty cash book with appropriate analysis columns:
2019 | (Rs.) | |
Feb. 1 | Received from cashier Rs. 9,250, the amount required to make up the amount of the ‘imprest’ viz., | 10,000 |
Feb. 3 | Chowkidar’s Wages | 500 |
Pencils, Pens etc. | 250 | |
Feb. 5 | Bus fare to workmen sent to customer’s premises | 600 |
Feb. 7 | Paid for wages | 200 |
Feb. 10 | Postage | 800 |
Feb. 12 | Three Wheeler’s charges for manager’s trip to the city | 100 |
Feb. 12 | Wages to casual labourer | 850 |
Feb. 14 | Repair of furniture | 300 |
Feb. 14 | Repair of scooter | 400 |
Feb. 18 | Taxi fare to assistant manager | 750 |
Feb. 20 | Refreshment to Customers | 450 |
Feb. 22 | Paid for cartage | 1,500 |
Feb. 25 | Locks purchased | 1,200 |
Feb. 25 | Conveyance | 250 |
Feb. 26 | Paid for writing pads and registers | 900 |
Feb. 28 | Courier Charges | 550 |
Solution 28:

Question 29: Enter the following transactions in a petty cash book in analytical form. The book is kept on imprest system, amount of imprest being Rs. 5,000.
2020 | |
Apr-03 | Petty Cash in hand Rs. 420. Received cash to make-up the imprest. |
Bought stamps for Rs. 300. | |
Apr-05 | Paid for office cleaning Rs. 200 and repairs to furniture Rs. 250. |
Apr-07 | Paid bus fare Rs. 440, railway fare Rs. 330, wages Rs. 200. |
Apr-08 | Paid for charity Rs. 350 |
Apr-09 | Bought shorthand note book for office Rs. 250, Carriage on parcels Rs. 280. |
Apr-10 | Bought envelopes Rs. 450, served refreshment to customers Rs. 150. |
Apr-12 | Paid for conveyance Rs. 300. Wages Rs. 200. Stapler pins Rs. 280. |
Apr-15 | Gave tips to office peon Rs. 250. |
Solution 29;

Working Note:- The Petty Cash imprint scheme is discussed below. Under this method, the amount needed for minor expenditures for a certain time is determined (say for a week, a fortnight or a month). At the beginning of an era, the amount so calculated is issued to the petty cashier and the amount charged by him during the period is repaid.

As explained in DK Goel Solutions class 11 Chapter 11, cash book is a financial record holder which amalgamates all the cash receipts and disbursements, highlighting the financial transactions in cash. After the financial cash transactions are recorded in the cash book, they are added to the ledger. Only the bank-related and cash transactions are added to the cash book, and a cash book always highlights the debit balance.
Cash Book is considered to have dual nature being both journal and ledger, as it records all the business transactions relating to cash payments and cash receipts. It is one of the most crucial accounting books maintained by every company. A cash book is multi-functional as it acts as both ledger and books of original entry. A cashbook eliminates the need for a cash account for all organizations.
Contra Entry is a type of entry that affects both bank accounts and cash. In simple words, it defines any financial transaction involving the transfer of cash from a cash account to another bank account or from a cash account to another cash account, or from a bank account to another bank account.
A cash book is a written record of all the financial transactions relating to cash or banks arranged in a specific sequence. In contrast, a cash account is a form of a ledger account that depicts the day-to-day transactions of an organization.
Petty cash book is one of the popular accounting books utilized to record all the minor expenses. For instance, daily wages, stationery, postage and handling, and much more. These types of cash books are usually designed and handled by petty cashiers.
Here are the notable similarities between Cash Books and Journals –
● Identical to the journal, in the cash book, all the entries are arranged in chronological format according to the date and time of the transaction.
● Similar to the journals, the data from the cash books flows to the ledger.
● Cash Books also includes a ledger folio column, just like journals.