Prepare a two-column cash book from the following information for December 2018:

| Date | Transaction | Amount (₹) |
|---|---|---|
| 1 December | Business started with cash | 1,20,000 |
| 3 December | Cash deposited into bank | 50,000 |
| 5 December | Goods purchased from Sushmi

Question

Prepare a two-column cash book from the following information for December 2018:

| Date | Transaction | Amount (₹) |
|---|---|---|
| 1 December | Business started with cash | 1,20,000 |
| 3 December | Cash deposited into bank | 50,000 |
| 5 December | Goods purchased from Sushmita | 10,000 (amount faint in the source scan; next-best legible reading) |
| 6 December | Goods sold to Dinkar, cheque received | 20,000 |
| 10 December | Cash paid to Sushmita | 20,000 |
| 14 December | Cheque received from Dinkar deposited into bank | — |
| 18 December | Goods sold to Rani | 12,000 |
| 20 December | Cash paid for carriage | 500 |
| 22 December | Cash received from Rani | 12,000 |
| 27 December | Commission received | 5,000 |
| 30 December | Cash withdrawn for personal use | 2,000 |

Accepted Answer

> [!TLDR]
> Cash column totals ₹1,69,000 receipts / ₹1,02,500 payments (balance c/d ₹66,500); Bank column totals ₹70,000 receipts / nil payments (balance c/d ₹70,000).
>
> A cheque received but not yet paid into the bank is conventionally treated as cash until the day it is actually banked (then recorded as a contra entry) — this applies to the Dec 6 cheque from Dinkar, which is treated as cash on receipt and moved into the Bank column only on Dec 14 when it is deposited.
>
> **Debit side (Receipts):**
>
> | Date 2018 | Particulars | Cash (₹) | Bank (₹) |
> |---|---|---|---|
> | Dec 1 | To Capital A/c (business started) | 1,20,000 | |
> | Dec 3 | To Cash A/c (C) (cash deposited into bank) | | 50,000 |
> | Dec 6 | To Sales A/c (goods sold to Dinkar, cheque received — kept as cash) | 20,000 | |
> | Dec 14 | To Cash A/c (C) (Dinkar's cheque now deposited into bank) | | 20,000 |
> | Dec 18 | To Sales A/c (goods sold to Rani) | 12,000 | |
> | Dec 22 | To Rani A/c (cash received) | 12,000 | |
> | Dec 27 | To Commission A/c | 5,000 | |
> | | **Total** | **1,69,000** | **70,000** |
>
> **Credit side (Payments):**
>
> | Date 2018 | Particulars | Cash (₹) | Bank (₹) |
> |---|---|---|---|
> | Dec 3 | By Bank A/c (C) (cash deposited) | 50,000 | |
> | Dec 5 | By Sushmita A/c (goods purchased) | 10,000 | |
> | Dec 10 | By Sushmita A/c (cash paid) | 20,000 | |
> | Dec 14 | By Bank A/c (C) (cheque banked) | 20,000 | | …

Date	Transaction	Amount (₹)
1 December	Business started with cash	1,20,000
3 December	Cash deposited into bank	50,000
5 December	Goods purchased from Sushmita	10,000 (amount faint in the source scan; next-best legible reading)
6 December	Goods sold to Dinkar, cheque received	20,000
10 December	Cash paid to Sushmita	20,000
14 December	Cheque received from Dinkar deposited into bank	—
18 December	Goods sold to Rani	12,000
20 December	Cash paid for carriage	500
22 December	Cash received from Rani	12,000
27 December	Commission received	5,000
30 December	Cash withdrawn for personal use	2,000

Date 2018	Particulars	Cash (₹)	Bank (₹)
Dec 1	To Capital A/c (business started)	1,20,000
Dec 3	To Cash A/c (C) (cash deposited into bank)		50,000
Dec 6	To Sales A/c (goods sold to Dinkar, cheque received — kept as cash)	20,000
Dec 14	To Cash A/c (C) (Dinkar's cheque now deposited into bank)		20,000
Dec 18	To Sales A/c (goods sold to Rani)	12,000
Dec 22	To Rani A/c (cash received)	12,000
Dec 27	To Commission A/c	5,000
	Total	1,69,000	70,000

Date 2018	Particulars	Cash (₹)
Dec 3	By Bank A/c (C) (cash deposited)	50,000
Dec 5	By Sushmita A/c (goods purchased)	10,000
Dec 10	By Sushmita A/c (cash paid)	20,000
Dec 14	By Bank A/c (C) (cheque banked)	20,000

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