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Three Column Cash Book.

Three column cash book
2013
jan1 cash in hand 5000
jan1 cash at bank 100000
jan2 discounted a bill for ₹1000 at 1% through bank
jan3 bought goods for ₹2000 paid cheque for them, allowed 1% discount.
jan15 sold goods for ₹12500 received cheque for them discounted allowed 1%.
jan25 purchased 100 war bonds for ₹ 100 each at ₹ 95 each and paid for them by cheque.....
Sir answer plz..

asked Sep 11, 2015 in Subsidiary Books by Faizan (28 points) 2,188 views

1 Answer

0 votes

 

Notes: (1) on 2/1/13 a Bill of Exchange has been discounted from bank and bank has charged 1% of Rs.1000 as discounting charges.  The entry for discounting charges will be passed in the General Journal:

Discounting Charges A/c    Dr.   10

  To Bills Receivable A/c                     10

This is the reason the discounting charges are not shown in the Cash Book.  In the cash book only the discount allowed on money received from debtors or received discount from our creditors is shown.

(2) 100 bonds of face value Rs.100 each is purchased at Rs.95 per share.  Actually Rs.95 is the market price of the bond and Rs.9500 only have been spent.  Actually in this transaction no discount is involved.

answered Sep 11, 2015 by jbsclasses (3,971 points)
Sir ans...three column cash book.
jan15 jones,who owed us ₹200 became bankrupt, and paid 50 p.per rupee
When a debtor goes bankrupt and his estate pays only a part of amount due, then the amount which is not received is debited to 'BAD DEBT A/C'.  in that case the journal entry will be:

Cash A.c            Dr.  100

To Jones A/c                       100

So in  case book only Rs.100  will be recorded on the receipt side of cash book under the cash column.  Entry for bad debts of Rs.100 will be passed in the General Journal:

Bad Debts   A/c  Dr.   100

 To Jones A/c                       100
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