Write up a trader's single column Cash Book for the month of January 2020, from the following particulars:
2020
Jan. 1: Cash in hand ₹2,50,000
Jan. 2: Cash sales ₹5,20,000
Jan. 3: Deposited cash into bank ₹4,00,000
Jan. 3: Paid cheque to creditors of ₹92,000 after deducting cash discount of ₹8,000
Jan. 4: Wages paid in cash ₹45,000
Jan. 4: Cash sales of ₹3,60,000 of which ₹3,00,000 was banked on 7th January
Jan. 9: Paid cash to Transport Corporation of India ₹9,000 against their Bill No. 295
Jan. 10: Paid wages in cash ₹57,000
Jan. 15: Cash sales ₹3,00,000 of which ₹2,40,000 was banked on 16th January
Jan. 17: Paid to cleaner in cash ₹7,200
Jan. 19: Cash sales ₹2,28,000
Jan. 20: Deposited cash into bank ₹1,50,000
Jan. 20: Paid cash for window cleaning ₹3,600
Jan. 21: Purchased goods on credit from M & Co. ₹50,000
Jan. 25: Paid wages in cash ₹48,000, paid cash for rates ₹72,000
Jan. 26: Cash sales ₹3,84,000
Jan. 28: Paid cash to Sunny, a creditor, after deducting discount ₹3,000 ₹19,000
Answer (2)
To help with understanding the creation of a trader's single column Cash Book for January 2020, let's break down the details given.
A Cash Book records all the cash transactions (cash inflows and outflows) chronologically. It has two sides: the debit side for receipts and the credit side for payments.
Here's how we can organize the transactions in the Cash Book:
Single Column Cash Book for January 2020
DateParticularsAmount (₹)Jan 1Balance b/d (Opening Cash)2,50,000Jan 2Cash Sales5,20,000Jan 4Cash Sales3,60,000Jan 15Cash Sales3,00,000Jan 19Cash Sales2,28,000Jan 26Cash Sales3,84,000
Total Receipts
20,42,000
DateParticularsAmount (₹)Jan 3Deposited into Bank4,00,000Jan 3Paid creditors (after discount)92,000Jan 4Wages Paid45,000Jan 9Paid to Transport Co.9,000Jan 10Wages Paid57,000Jan 17Paid to Cleaner7,200Jan 20Deposited into Bank1,50,000Jan 20Paid for Window Cleaning3,600Jan 25Wages Paid48,000Jan 25Paid for Rates72,000Jan 28Paid to Sunny (after discount)19,000
Total Payments
8,02,800
Balancing the Cash Book :
Total cash receipts for January = ₹20,42,000
Total payments = ₹8,02,800
Closing balance (Cash in hand at the end of January):
Closing Balance = Total Receipts − Total Payments = 20 , 42 , 000 − 8 , 02 , 800 = 12 , 39 , 200
This Closing Balance of ₹12,39,200 will appear as the opening cash balance for the next month.
The Cash Book for January 2020 records cash inflows and outflows to give a clear picture of the cash position. The total receipts amount to ₹20,42,000 while the total payments amount to ₹8,02,800, resulting in a closing cash balance of ₹12,39,200. This balance will be the opening cash for the next month.
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