two column cash book.

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asked Sep 5, 2015 in Subsidiary Books by Faizan (28 points) 7,353 views

1 Answer

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Note: 1. Rs.1000 deposited into bank is a contra (c) entry.  A contra entry is the one which involves both cash account and bank account.  Since entries relating to cash a/c and bank a/c are not to be posted in the ledger, (c) is written in the JF column.

2. Cheque received from Ram on 15th March could not be deposited on the same day, hence on 15th March it was taken in the cash account.  On 18th March, when this cheque was actually deposited into bank, a contra entry was passed.  This is done to keep a track of the cheque before depositing into the bank.

answered Sep 5, 2015 by jbsclasses (3,971 points)
Sir plz another question......
Two column cash and bank
mar1 cash balance 1635
mar1 bank balance 375
mar3 deposited into bank 1000
mar4 received from raj kumar 445
mar6 purchased goods for cash 500
mar7 gave to manoj by cheque 300
mar9 cash sales 600
mar11 withdrew from bank 250
mar11 received cheque from ramesh 625
mar12 deposited ramesh's cheque into bank -
mar15 purchased goods from naresh 30
mar18 paid commission 30
mar29 made payment to naresh by cheque -
mar30 paid salaries 150...
Sir in naresh's transaction the amount is not given there is only a hifin (-) just like in ramesh's cheques is deposited into bank......
Plz sir ans

Notes: 1. Cheque of Rs.625 received from Ramesh on March 11, is not deposited in the bank on the day of receipt, hence it has been taken in cash.  The same cheque when deposited in bank on March 12, a contra entry is passed (Bank A/c  Debited and Cash A/c Credited with Rs.).

2. Credit purchases of Rs.30 would not come in cash book, but will be recorded in Purchase Book.