Livestock Economics, Marketing and Business Management

ILLUSTRATION

• The following information relates to a businessman for the month of June 2005.
• Indicate how it would be recorded in the three different types of cash book.
  • 2005 June
  • 1 Started business with cash Rs.25000
  • 2 Opened a bank account with Rs.20000
  • 7 Purchases by cheque Rs.1200
  • 9 Sales by cheque Rs.1000
  • 12 Draw cheque for personal use Rs.1200
  • 13 Raja paid into our bank account Rs.5000 and was allowed discount Rs.300
  • 16 Drew cheque for personal use Rs.1000
  • 20 Gave cheque of worth Rs.1000 to Ravi and discount Rs.50
  • 22 Bought furniture by cheque for Rs.2500
  • 28 Sales by cheque Rs.5000
  • 30 Above cheque paid into bank.

Cash Book (with Cash and Discount Columns)

Date	Receipts V.No L.F	Discount Rs	Amount Rs	Date	Payments V.No L.F.	Discount Rs	Amount Rs
2005 June				2005 June
1	To Capital account		25000	2	By Bank account		20000
4	To Bank account		1200	4	By Purchases account		12000
7	To Sales account		1000	9	By Bank account		1000
12	To Bank account		1200	12	By Drawings account(Personal use)		1200
13	To Raju’s account	300	5000	16	By Drawings account(Personal use)		1000
16	To Bank account		1000	20	By Ravi’s account	50	1000
30	To Sales account		5000	22	By Furniture account		2500
				30	By Balance c/d		11500
		300	39400			50	39400
2005 June 1	To Balance b/d		11500

Cash Book (With Bank and Discount Columns)

Date	Receipts V.No L.F	Discount Rs	Bank Rs	Date	Payments V.No L.F	Discount Rs	Bank Rs
2005 June				2005June
1	To Capital account (Started Business with deposit in bank)		25000	4	By Purchases account (Cash Purchases made)		1200
7	To Sales account(cash Sales)		1000	12	By drawings account(Personal use)		1200
13	To Raju’s account	300	5000	16	By drawings account(Personal use)		1000
30	To Sales account		5000	20	By Ravi’s account	50	1000
				22	By Furniture’s account		2500
				30	By Balance C/d		29100
		300	36000			50	36000
2005 June 1	To Balance b/d		29100