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Triple Column Cash Book: Long Question and Solution

Arjun EP

Published on: October 15, 2020

How to solve long question in cash book?

Step 1, Find out cash transactions and bank transitions property,

Step 2, Calculate discount from main transaction,

Step 3, Record cash and bank receipts transactions in debit side,

Step 4, Record cash and bank payments transactions in credit side,

Step 5, Sum the debit and credit of cash and bank amount,

Step 6, Find out balance c/d of cash and bank.

Long answer question of cash book is the exam based problems and solution.

It is exam based comprehensive question and solution.

It covers large topic of the chapter.

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

PROBLEM: 6A

Usha Marbles (P) Ltd has following information:

July 1	Cash in hand	100,000
July 2	Deposited in the bank	25,000
July 3	Equipment purchased for cash	25,000
July 4	Sundry expenses paid	1,000
July 5	Goods purchased	10,000
July 6	Cheque issued to Bhim in full settlement (creditors of Rs 15,000)	14,500
July 7	Goods sold to Arjun for cash	5,000
July 8	Cheque received from Nakul in full settlement (debtors of Rs 20,000)	19,000
July 8	Nakul’s cheque deposited into bank	−
July 10	Withdrawn from the bank for office use	5,500
July 12	Domestic expenses paid in cash	500
July 14	Advance salary paid to Mr Gautam	2,000
July 15	Bank had paid life insurance premium as per instruction	10,000
July 16	Goods sold to Sahadev for Rs 10,000; he issued cheque less 3%.	−
July 17	Electricity bill paid	3,000

Required: Triple column cash book

[Answer: Balance: Cash = 44,000; Bank = 23,700]

SOLUTION:

Triple Column Cash Book

Date	Receipt	LF	Cash	Bank	Dis	Date	Payment	LF	Cash	Bank	Dis
July 1	To Balance b/d	−	100,000	−		July 2	By Bank account	C	25,000	−
July 2	To Cash account		−	25,000		July 3	By Equipment A/c	−	25,000	−
July 7	To Sales A/c	C	5,000	−		July 4	By Sundry expenses	−	1,000	−
July 8	To Nukul’s A/c	−	−	19,000	1,000	July 5	By Purchase account	−	10,000	−
July 10	To Bank account	−	5,500	−	−	July 6	By Bhim’s account	−	−	14,500
July 16	To Sales	C	−	9,700	300	July 10	By Cash account	C	−	5,500
						July 12	By Drawing account		500	−
						July 14	By Advance salary		2,000	−
						July 15	By Drawing account		−	10,000
						July 17	By Electricity bill		3,000	−
						July 17	By Balance c/d		44,000	23,700	500
			110,500	53,700	1,300				110,500	53,700	500

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Click on link for YouTube videos topic wise :
Accounting Equation	http://tiny.cc/c89jkz
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
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)	http://tiny.cc/jlersz
Accounting Process	http://tiny.cc/mlersz
Accounting for Long Lived Assets	http://tiny.cc/plersz
Analysis of Financial Statement	http://tiny.cc/slersz

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

PROBLEM: 6B

SVS Trade Link has following balances on 1^st April: (amount in hundred)

Debit balance	Credit balance
Cash amount Rs 6,540	Bank balance Rs 290
Debtors accounts:	Creditors accounts:
Birendra (SL 13) Rs 1,200	Abhishek (PL 51) Rs 4,400
Deepika (SL 14) Rs 400	Ritendra (PL 52) Rs 1,000
Nilima (SL 15) Rs 2,800	Upendra (PL 53) Rs 600

RV = receipt voucher; PV = payment voucher

Additional information:

April 5: Cheque received from Birendra deducted discount of Rs 30. (RV 24)

April 10: Settled Ritendra’s account by cheque, deducting 5% discount. (PV 51)

April 12: Cash deposited into bank 1,500.

April 15: Nilima settled her account by cheque 97.5% (RV 25)

April 20: Deepika paid cash after deducted cash discount 5%. (RV 26)

April 25: Paid to Upendra by cheque less cash discount of Rs 30 (PV 52)

April 29: Cash paid to Abishek less cash discount @ 2.5%. (PV 53)

April 30: Salary paid in cash Rs 920.

Required: Triple column cash book

[Answer: Balances: Cash = Rs 210; Bank = Rs 3,590]

SOLUTION:

Triple Column Cash Book

Date	Receipt	RV	LF	Cash	Bank	Dis	Date	Receipt	PV	LF	Cash	Bank	Dis
Apr 1	To Balance b/d			6,540			Apr 1	By Balance b/d				290
5	To Birendra’s A/c	24	SL13		1,170	30	10	By Ritendra’s A/c	51	PL52		950	50
12	To Cash account		C		1,500		12	By Bank account		C	1,500
15	To Nilima’s A/c	25	SL15		2,730	70	25	By Upendra’s A/c	52	PL53		570	30
20	To Deepika’s A/c	26	SL14	380		20	29	By Abhishek’s A/c	53	PL54	4,290		110
							30	By Salary account			920
							30	By Balance c/d			210	3,590
				6,920	5,400	120					6,920	5,400	190

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

PROBLEM: 6C

SM Traders maintains BRS on weekly basis. Following balances available on first week of May:

May 1: Cash balance of Rs 35,000 bank balance (Cr) Rs 70,000.

May 2: Cash Rs 48,500 and cheque of Rs 29,000 received from Ritika in full settlement of Rs 78,000.

May 2: School fee paid of daughter Rs 6,500.

May 2: Interest on overdraft charged by bank Rs 930.

May 3: Cheque received from Ritika being dishonoured and noting expenses paid Rs 500.

May 4: Internet bill paid by bank as per instruction Rs 3,500.

May 5: Advance commission received in cash Rs 1,750

May 7: Different cheques issued for payment of Rs 90,000 but only Rs 50,000 presented for payment on first week.

May 7: Cheques of Rs 1,50,000 deposited for collection but only Rs 1,30,000 realised by bank.

May 7: Cash deposited into bank after leaving Rs 1,500 in the office.

Required: Triple column cash book

[Answer: Balance: Cash = Rs 1,500 given; Bank = Rs 82,320;

*Contra entry = Rs 77,250]

SOLUTION

Triple Column Cash Book

Date	Receipt	LF	Cash	Bank	Dis	Date	Payment	LF	Cash	Bank	Dis
May 1	To Balance b/d		35,000	−	500	May 1	By Balance b/d		−	70,000
May 2	To Ritika’s A/c		48,500	29,000		May 2	By Drawing A/c		6,500	−
May 5	To Adv. Comm.		1,750	–		May 2	By Interest on OD		−	930
May 7	To Debtors		–	1,30,000		May 3	By Ranjana’s A/c		−	29,500
May 7	To Cash A/c	C		77,250			(dishonoured)		−	−
						May 4	By Internet bill			3,500
						May 7	By Creditors			50,000
						May 7	By Bank A/c	C	77,250
						May 7	By Balance c/d		1,500	82,320
			85,250	236,250	500				85,250	2,36,250	Nil