Double Column Cash Book Questions with Solutions
Meaning of Double Column Cash Book
The double-column cashbook has two columns of amounts on both sides. The two columns of amount may be either cash and discount columns, cash and bank columns, or bank and discount columns. Hence, the double-column cash book may be of three types.
- Cash and Discount Columns
- Bank and Discount Columns
- Cash and Bank Columns
Contra Entry
The entries which affect both sides of Cash Book are known
as contra entries. To notify the contra entry, the alphabet “C” is mentioned in the LF column on both sides of the Cash Book. Examples of contra entries are
- Deposited cash into the bank.
- Withdrawn cash from the bank for office use.
Question and Solution of Double column cash book
Cash and Discount Columns Problems
Problem 1
The following cash transactions for the month of February are
given to you
Feb. 1. Balance of cash in hand 13200
5. Paid 7200
for purchase of goods after deducting 50 as a discount
7. Received
cash of 4500 from Kumar Lal after deducting the discount of 75
20. Paid wages of 500
30. Paid 1275
to Ram Lal after deducting the discount of 25
Required: Double-column cash book (Ans: Cash balance 8725)
Problem 2
Enter the following transactions into the Double-columned Cash
Book with cash and discount columns
2013 Jan 1. Tarun commenced a business with cash of 10000
He pays
2300 for goods bought; 500 for furniture purchased; 400 for office equipment.
2. He
pays rent 100; pays legal costs at 10
3. He
sells goods for cash 1800
4. He
sells goods to Naresh on credit 800
5. He
pays wages 15; cartage 5
6. He buys
goods for cash 700 and pays 425 to the creditor for full settlement of claim 430
7. He
receives cash from Naresh allowing a discount of 2
8. He sells
goods for cash 50 (Ans: Cash
balance 8193)
Bank and Discount Column Problem
Problem 1
Enter the following transactions of Kamal on the double-column
cashbook with Bank and Discount Columns: Assume that all the transactions are
carried through the bank.
2000 Jan 1. Balance at bank 700
Jan 7.
Purchase goods on credit from Bikash 1500
Jan 9.
Insured the stock in hand and paid an insurance premium of 70
Jan 10. Sold
goods to Basant worth 2000 and received cash after allowing a discount of 10%
Jan 15.
Paid to Bikash and received a discount of 5%
Jan 20.
Paid to Bikram (Discount received 20) 980
Jan 25. Received
from Amrit 570 in full settlement of his debt of 600
(Ans:
Bank balance 545)
Problem 2
The following transactions are given
Jan 2. Balance at bank, 2500
Jan 2. Received from Krishna 950 in full discharge of his
account for 1000
Jan 3. Paid Mohamod’s account of 400, less discount at 2
percent
Jan 4. Drew cheque for 900 of which 800 was for payment of
wages and 100 for petty cash.
Jan 5. Received From Pravat a cheque for 1000 and allowed
his 50 discount
Jan 6. Received 450 from Henson in full discharge of his
debt of 470
Jan 7. Paid 650 to Mr. Brwon in full settlement of his
account for 680
Required: Cash book with necessary column (Ans: Bank balance 2958)
Problems of Cash and Bank Column
Problem 1
The following cash and banking transactions are given:
2003 Dec. 1: Cash balance 350000
12:
Deposited into Bank 300000
13:
Purchased goods for cash 20000
15:
Received cash of 4000 from S. Company.
25: Paid
wages by cheque 40000
28:
Withdrawn cash from the bank for private use 5000
Required: Double column cash book (Ans: Cash balance 34000; Bank balance
255000)
Problem 2
Write up the Cash Book with Cash and Bank Column from the
following transactions for the month of March
1 Balance
of Cash at office 7220 and overdraft balance at bank 21350
4 Sold goods
for 1500 and received cheque for 11000 and balance in cash
5 Deposited
into bank 7000
10 Received
cash from Mr. Kama 5400 and allowed sum a discount of 100
15 Paid into
bank 8000
22 Purchased goods
from Mr. Shrestha for 15000 and issued a cheque for 6000 only as part payment.
(Ans: Cash balances Dr. 1620; Bank balances Cr. 1350)
