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:-

1. Cash Book
2. Purchases Book
3. Sales Book
4. Purchases Return Book
5. Sales Return Book
6. Bills Receivable Book
7. Bills Payable Book
8. 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:-

1. The transactions in the cash book are documented from source records for the first time, much like a report.
2. Transactions in the cashbook are reported date-wise, i.e. in a chronological order, when and when they are put, much like a document.
3. Much as a log, cash book transfers are often posted in the ledger to the related accounts.
4. A cash book also includes a ledger folio column, much like a journal.

(ii) Similarities of cash book with ledger:-

1. 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).
2. 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.
3. In a cash book, much like a ledger account, the words ‘To’ and ‘By’ are sometimes used.
4. 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 9^th and from Gopal on 20^th 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.