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Cash Book: Short Answer Question (Problems and Answers)

Arjun EP

Published on: October 15, 2020

Short answer question of subsidiary book

Short answer questions are the best collection of short answer type questions of cash book. Questions are set to understand upper than basic concept of the chapter.

Students and learners are suggested to solve first brief answer type questions of cash book; then solve short answer questions.

First, starts to study and practice from beginning of the chapter; after that, if you feel something is confusion you should comment on comment box without any hesitation.

PROBLEMS AND ANSWERS

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 1

Following cash and banking transactions are given:

Feb 1: Balance of cash in hands Rs 25,000 and at bank Rs 30,000.

Feb 2: Bought goods and paid by cheque Rs 10,000.

Feb 8: Goods purchased for cash Rs 5,000.

Feb 9: Goods sold for cash Rs 10,000.

Feb 10: Cash deposited into bank Rs 10,000.

Feb 12: Withdrew cash from bank Rs 5,000 for office use.

Required: cash book with cash and bank column

[Answer: Cash balance = 25,000; Bank balance = 25,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 2

Following cash and banking transactions are given:

Jan 1: Balance of cash in hands Rs 20,000 and cash at bank Rs 50,000

Jan 5: Goods purchased and paid through cheque Rs 20,000

Jan 10 Goods sold for cash Rs 30,000

Jan 15: Purchased furniture and paid through cheque Rs 10,000

Jan 20: Cash deposited into bank Rs 20,000

Jan 25: Withdrew cash Rs 10,000 from bank for office purpose

Required: cash book with cash and bank column for the month of Jan

[Answer: Cash balance = 20,000; Bank balance = 50,000]

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Click on link for YouTube videos topic wise :
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Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger Account	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance and Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 3

Following cash and banking transactions are given to you DK Traders:

March 1: Cash in hand Rs 4,750, balance at bank Rs 49,650.

March 5: Inventory bought and paid by cash Rs 4,000 and by cheque Rs 6,500.

March 10: Paid Archana’s account of Rs 6,000 less discount at 2%.

March 15: Inventory sold for Rs 7,500.

March 20: Deposited into bank Rs 3,750.

March 25: Received cash Rs 19,000 from Nanu after deducting discount of Rs 1,000.

Required: Cash book with cash, bank and discount column

[Answer: Cash balance = 17,620; Bank balance = 46,900]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 4

Following cash and banking transactions are given:

April 1: Cash in hand Rs 2,000.

April 2: Inventory sold for cash Rs 12,000.

April 5: Bank account opened by depositing cash Rs 10,000.

April 7: Paid to Ram by cheque Rs 5,300; discount received from Ram Rs 200.

April 9: Received a cheque from Shyam of Rs 3,900 and paid into bank; after allowed him discount Rs 100.

April 10: Withdrew Rs 2,000 from the bank for office use.

Required: Triple column cash book

[Answer: Cash balance = 6,000; Bank balance = 6,600]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 5

Munex Traders has following cash and banking transactions:

Jan 1:	Balance of cash in hands Rs 10,000 and at bank (credit) Rs 50,000
Jan 6:	Received cheque of Rs 5,700 from a customer after deducting 5% discount
Jan 12:	Paid by cash Rs 1,900 in full settlement of Rs 2,000
Jan 18:	Cash deposited into bank Rs 1,000
Jan 24:	Merchandise sold Rs 30,000; Rs 4,000 received in cash and balance amount is received by cheque; allowed cash discount of Rs 1,000

Required: cash book with cash, bank and discount columns for the month of Jan

[Answer: Cash balance = 11,100; Bank balance (Cr) = 18,300]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 6

You are given the following extracted transactions by AM Traders:

Jan 1:	Cash in hands Rs 7,500 and cash at bank Rs 150,000.
Jan 5:	Cash received from debtors Rs 9,500 after deducting 5% discount.
Jan 6:	Inventory sold on account of Rs 12,565.
Jan 10:	Paid by cheque Rs 2,900 in full settlement of Rs 3,000.
Jan 15:	Goods purchased for Rs 45,000 and paid Rs 4,000 in cash and on same date;
	balance amount is also paid through cheque after receiving Rs 500 discount.
Jan 20:	Cash deposited into bank Rs 2,000.

Required: Triple column cash book for the month

[Answer: Cash balance = 11,000; Bank balance = 108,600]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 7

TP Link You are given the following cash and banking transactions:

March 1: Cash in hands Rs 5,000 and bank balance Rs 10,000.

March 10: Stationery purchased for Rs 2,000 and paid by internet banking after deducting Rs 100 discount.

March 15: Inventory purchased on account of Rs 26,485.

March 20: Cash withdrawn from bank Rs 2,000 for office use and Rs 1,000 for personal use.

March 25: Cash received from Rani Rs 1,800 after deducting 10% discount.

March 20: Communication bill paid Rs 1,000.

Required: Triple column cash book for the month

[Answer: Cash balance = 7,800; Bank balance = 5,100]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 8

The following transactions are given:

June 1:	Cash in hand Rs 9,815 and cash at bank Rs 98,293
June 5:	Received cash Rs 19,800 from the debtors after deducting discount at 1%.
June 10:	Paid cash Rs 2,915 in full settlement of Rs 3,123
June 15:	Inventory bought of Rs 19,980 and paid Rs 4,217 in cash; the balance amount is paid through cheque after receiving discount of Rs 182
June 18:	Cash deposited into bank Rs 12,456.
June 20:	Interest credited by bank Rs 1,987.
June 25:	Cash withdrew from bank for domestic use Rs 4,892 and office use Rs 17,123.

Required: Triple column cash book for the month of June

[Answer: Cash balance = 9,100; Bank balance = 97,200]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

SAQ: 9

Nalanda Traders has following extracted information:

July 1	Debit balance of cash 40,000 and bank Rs 50,000.
July 2	Goods sold and cheque received Rs 38,800.
July 3	Paid travel expenses in cash Rs 12,000.
July 4	Paid to MK Traders by cheque Rs 49,500 in full settlement of Rs 50,000.
July 5	Received a cheque from PK Traders Rs 9,800 after adjusting discount of Rs 200.
July 6	Goods sold to Manisha worth Rs 15,000.
July 7	Laptop purchased for cash Rs 44,000.
July 8	Cash withdrew from bank for office use Rs 30,000.