4. Post the following transactions into Furniture Account and balance it.
April 1 : Opening balance of furniture Rs. 90,000
April 2 : Purchased furniture from Rahul Rs.12,000
April 3 : Depreciation provided on furniture Rs. 8,000
April 4 : Part of furniture sold for Rs. 35,000
April 10 : Furniture purchased on cash Rs. 13,000
5. Mr. Shrestha's business transactions revealed the following:
Jestha 4 : Sold goods to Mrs. Pradhan Rs. 30,000
Jestha 10 : Cash paid by Mr. Pradhan Rs. 10,000
Jestha 10 : Discount allowed to Mr. Pradhan Rs.1,000
Jestha 15 : Returns from Mr. Pradhan Rs. 3,000
Required: Mr. Pradhan's account in the books of Mr. Shrestha
6. Post the following transactions into:
i. Cash A/c
ii. Bank A/c
iii. Drawing A/c
• Started business with capital of Rs. 1,00,000
• Cash deposited into bank Rs. 75,000
• Furniture purchased on cash Rs. 15,000
• Rent paid Rs. 4,000 including advance of Rs. 1,000
• Cash drawn for domestic use Rs. 5,000
• Cash drawn for office use Rs. 6,000
• Goods of Rs 1,000 sold to Ram for Rs. 800
• Interest received Rs. 2,000
7. You are given the following transactions.
• Business started with cash Rs. 15,000 and bank balance of Rs. 35,000
• Cash drawn for office use Rs. 5,000
• Goods purchased for Rs. 3,000 and paid through cheque
• Furniture purchased from Sanju for Rs. 3,500
• Goods costing Rs. 1,500 sold at profit of Rs. 500
• Telephone bill paid through cheque Rs. 700
Required: Necessary ledger
Office Practice and Accounting 9 147
8. Journalize the following transactions and post them into necessary
ledgers.
Jestha 1 : Started business with cash Rs 2,50,000
Jestha 3 : Deposited cash into the bank Rs 1,80,000.
Jestha 5 : Purchased goods for cash Rs 8,000
Jestha 8 : Sold goods for cash Rs 4000
Jestha 10 : Machinery purchased for Rs. 5,000 and paid through cheque
Jestha 12 : Sold goods to Bhuwan Rs 2000
Jestha 14 : Purchased goods from Tirtha Rs 1,000
Jestha 15 : Goods returned to Tirtha Rs 500
Jestha 16 : Received from Bhuwan Rs 1,800 in full settlement
Jestha 18 : Withdrew goods for personal use Rs 1,000
Jestha 20 : Withdrew cash from business for personal use Rs 2,000
Jestha 22 : Paid telephone charges Rs 500
Jestha 23 : Cash paid to Tirtha Rs 400 in full settlement
Jestha 25 : Paid for stationery Rs 200, rent Rs 500 and salaries to staff Rs 1,000
9.
2072 Magh 10 : Purchased furniture from Koshi Furniture Work Shop
Rs. 20,000
2072 Magh 15 : Goods sold on credit Rs. 500
2072 Magh 25 : Furniture costing Rs. 5,000 has been sold for Rs. 5,500
2072 Magh 27 : Cash received from debtor Rs. 4,900 and allowed discount
Rs. 100
Required: Furniture Account
10. Following transactions of a business house for the month of Poush are
given to you:
a. Initiated business with cash Rs. 1,50,000, goods of Rs.11,000 and furniture
of Rs. 35,000
b. Cash deposited into the bank Rs. 70,000
c. Loan taken from Everest Bank Rs. 80,000
d. Purchased goods from Arya for Rs. 22,000 and partial payment is made
through cheque Rs. 12,000 only
148 Office Practice and Accounting 9
e. Sold goods on credit for Rs 10,000
f. Cash paid to Deepa Rs 4,500 in full settlement
g. Cash received from debtors Rs 4,500 in full settlement of Rs. 4600
h. Payment of loan installment Rs.24000
11. Journalize the following transactions and post them into necessary
ledger.
2071 Mangsir 1 Commenced a business with capital of Rs. 120000 in cash
computer of Rs. 30,000
2071 Mangsir 3 Sold goods to Anish Rs. 2,000
2071 Mangsir 4 Arun, who owned Rs. 1,000, became unsolved and his acoount
written off as bad debt
2071 Mangsir 5 Received from Anish Rs. 1,800 in full settlement
2071 Mangsir 7 Goods distributed as free sample Rs. 1,000
2071 Mangsir 8 Old furniture sold for cash Rs. 1,500
2071 Mangsir 9 Purchased goods for Rs. 10,000, from Suresh and made partial
payment of Rs. 6,000 only
2071 Mangsir 10 Received Rs. 1,000 from Ram which was earlier written off as
bad debt
12. Prerare necessary ledger from the following transactions in the books
of XYZ Ltd.
Asoj 1 : Panday started business with cash Rs. 2,50,000
Asoj 3 : He deposited cash in to the bank Rs. 10,000.
Asoj 5 : Purchased goods for cash Rs. 5,000
Asoj 8 : Sold goods for cash Rs. 4000
Asoj 10 : Furniture purchased for Rs. 5,000 and paid through cheque
Asoj 12 : Sold goods to Bhuwan Rs. 2000
Asoj 14 : Purchased goods from Dhruba Rs. 1,000
Asoj 15 : Goods returned to Dhruba Rs. 500
Asoj 16 : Received from Bhuwan Rs 1,800 in full settlement
Asoj 18 : Withdrew goods for personal use Rs 1,000
Asoj 20 : Drawn cash from business for personal use Rs 2,000
Asoj 22 : Paid telephone charges Rs 500
Asoj 23 : Cash paid to Dhruba Rs 400 in full settlement
Asoj 25 : Paid for stationery Rs7200, rent Rs 500 and salaries to staff Rs
1,000
Office Practice and Accounting 9 149
13. The following transactions are relating to a business office.
Baishakh – 1 Business started with cash Rs. 5,50,000 and bank balance of Rs.
50,000
Baishakh – 5 Deposited Rs 45000 into bank
Baishakh – 8 Goods of Rs. 12000 purchased from Nima
Baishakh – 11 Paid Rs. 22000 to creditor through cheque
Baishakh – 16 Goods withdrawn by proprietor for personal use Rs. 8,500
Baishakh – 17 Goods of Rs. 9000 sold to Kiran receiving cash Rs. 1,000 as
partial receipt
Baishakh – 21 Cash drawn for office use Rs. 5,000
Baishakh – 23 Goods purchased for Rs. 3,000 and paid through cheque
Baishakh – 24 Paid to Nima Rs. 11000 in full settlement
Baishakh – 26 Furniture purchased from Sanju for Rs. 3,500
Baishakh – 27 Goods costing Rs. 1,500 sold at profit of Rs. 500
Baishakh – 29 Telephone bill paid through cheque Rs. 700
Baishakh – 31 Received Rs. 7900 from Kiran in full settlement of his account
Required: Necessary ledgers
14. Journalize the following transactions in the books of XYZ and Ltd and
also post them into necessary ledgers.
Jan. 1 Commenced business with
Cash Rs. 2,00,000
Goods Rs. 50,000
Machinery Rs. 75000
Jan. 2 Goods purchased for Rs. 10,000 from Ram
Jan. 5 Machinery of Rs. 9000 purchased
Jan. 8 Goods of Rs. 2000 sold to Dilip
Jan. 10 Paid commission Rs. 700
Jan. 12 Paid to Ram Rs. 9500 in full settlement
Jan. 15 Deposited into bank Rs. 1,50,000
Jan. 18 Drawn cash:
for domestic purposed Rs. 7000
for office use Rs. 12000
Jan. 20 Cash purchased Rs. 15000
Jan. 22 Cash sales Rs. 16000
150 Office Practice and Accounting 9
Jan. 25 Rent paid Rs. 12000 through cheque
Jan. 27 Interest received Rs. 800
Jan. 28 Salary paid for the month Rs. 15000
Jan. 30 Received a cheque of Rs. 1850 from Dilip for full settlement
15. Following are the transactions of Barbote Furniture Factory.
a. Started business with Rs. 40,000
b. Sold goods of Rs. 2000
c. Purchased goods of Rs. 3000
d. Insurance premium of proprietor Rs. 800
e. Paid to ABC Rs. 2000 on behalf of Sanju
f. Goods of Rs. 5000 sold at 10% trade discount
9. Interest on capital Rs. 1000 provided
Required: i. Cash account ii. Drawing account iii. Capital account
16. You are given the following transactions:
072 Ashoj 1 Started business with Rs. 75000
072 Ashoj 2 Opened a bank account with Rs. 40,000
072 Ashoj 4 Stationery bought Rs. 2000
072 Ashoj 5 Machinery purchased for Rs. 7000
072 Ashoj 6 Goods of Rs. 8000 purchased from ABC Company
072 Ashoj 8 Cash purchased for Rs. 4000
072 Ashoj 9 Sold goods for 5000 and allowed discount 10%
072 Ashoj 15 Paid salary Rs. 12000
072 Ashoj 17 Fire insurance paid Rs. 3000
072 Ashoj 19 Personal expenses of proprietor paid Rs. 1500
072 Ashoj 25 Paid to ABC Company Rs. 8200 in full settlement
072 Ashoj 28 Rent Rs. 4000 paid
072 Ashoj 30 Cash sales Rs. 2500
Required: Journal entries with ledgers of each transaction
Office Practice and Accounting 9 151
UNIT
11 Subsidiary Book
Learning objectives:
After the completion of this unit, students will be able
to understand:
• meaning of subsidiary books.
• advantages and importance of subsidiary books.
• to prepare:
- Purchase book
- Purchase return book
- Sales book
- Sales return book
- Cash book
Single column
Double column
Triple column
152 Office Practice and Accounting 9
11 Subsidiary Book
In a big concern, recording of all transactions in one journal and posting them into
various ledger accounts will be very difficult and involve a lot of clerical work. It
will not only be inconvenient but also causes delay in collecting the information
required. Journal is difficult for large business organizations and increased volume of
transactions because of the following limitations:
i. Periodical details of some important business transactions cannot be known,
from the journal easily, e.g., monthly sales, monthly purchases.
ii. Such a system does not facilitate the installation of an internal check system
since the journal can be handled by only one person.
iii. The journal becomes bulky and voluminous.
To overcome the shortcomings of journal, subsidiary book is introduced. Subsidiary
book is the sub-division of Journal. Those books of original entry in which transactions
of similar nature are recorded at one place and in chronological order. These are
known as books of prime entry or books of original entry as all the transactions are
recorded in their original form. In these books and the details of the transactions are
recorded as they take place day to day in a classified manner.
“Subsidiary books of accounts are also called books of original entry because
all the transactions are recorded originally or in the first instance in this
subsidiary book." - A. N. Agrawala
"Subsidiary records are also known as the books of original entry, as transactions
are entered there in the first instance so that they may be subsequently
transferred to their respective accounts in the ledger." -J.R. Batliboi
Thus, subsidiary books refer to the books meant for specific transactions of similar
nature. These are also known as special journals or day books. To overcome the
shortcoming of the use of the journal only as a book of original entry, the journal is
subdivided into specific journals or subsidiary books.
Office Practice and Accounting 9 153
The following subsidiary books are used in the business:
a. Purchase Book b. Sales Book c. Purchase Return Book
d. Sales Return Book e. Cash Book f. Bills Receivable Book
g. Bills Payable Book
Advantages/Importance of subsidiary books
The following are the advantages of Subsidiary books or Special journal:
1. Saving of clerical labor: Subsidiary books affect considerable saving of
clerical labour in postings and narration. Transactions of any one class such
as credit purchases, credit sales, cash transactions, etc., are recorded through
separate subsidiary journals and there is no need for giving narration.
2. Division of clerical work: As separate journals are used for recording the
transactions of each particular type, the division of clerical labor amongst
several office clerks becomes possible. This makes speedy record of day-to-day
transactions practicable.
3. Minimizes frauds: These books make possible the introduction of internal
check system under which the system of rotation of writing up books can be
adopted. This helps minimizing errors and detecting frauds.
4. Facilitates further reference: As transactions of similar nature are grouped
together in a separate book, further reference to any particular item is
considerably facilitated.
Purchases book
Purchase book is a subsidiary book in which credit purchase of goods for resale
purpose is recorded.
The purchase book is also known as purchase journal or purchase day book. It does
not record the purchase of goods, things and assets if they are not purchased for
resale purpose. It does not record the goods purchased for personal and official use.
Specimen
Purchase book
......................................
Date Particulars LF Invoice No. Details Amount
154 Office Practice and Accounting 9
Explanation of the columns
i. Date: The date of the transaction is recorded in this column.
ii. Particulars: Particulars column records the name of the supplier and details of
items purchased.
iii. Ledger folio (L.F.): Page number of the ledger account on which the transaction
has been posted is mentioned in this column.
iv. Invoice No: This column is to record the invoice number issued by the supplier.
v. Details: It is the column to record sub-total of price of the goods.
vi. Amount: This column records the invoice price of the goods purchased. This
amount is payable to the supplier and transferred to the debit side of purchase
ledger.
Illustrations
1. Enter the following transactions in the purchase book.
2070 Baishak1 : Purchased from Hareram Traders
20 shirts @ Rs. 300 per shirt
30 pair of trousers @ Rs. 400 per piece
2070 Baishak 9 : Purchased from Pramod
10 coats @ Rs. 1,500 per coat
25 shirts @ Rs. 400 per shirt
Less : Trade discount 10% on both
2070 Baishak 17 : Purchased from Bigyan Store
15 jackets @ Rs.800 on cash
2070 Baishak20 : Purchased from Kiran
40 pair of trousers @ Rs. 450 each
Amount
Date Invoice No. Particulars LF
Detail (Rs.) Total (Rs.)
2070-1-1 Purchased from Hareram Traders
20 shirts @ Rs. 300 shirt 6,000
30 Trousers @ Rs. 400 trousers 12,000 18,000
2070-1-9 Purchased from Pramod
10 coats @ Rs. 1,500 each 15,000
25 shirts @ Rs. 400 each 10,000
Less: Trade discount 10% 25,000
(2,500) 22,500
070-1-20 Purchased from Kiran
40 Trousers @ Rs. 450 each 18,000
Total Purchase A/c 58,500
Office Practice and Accounting 9 155
2. Prepare purchase book from the following purchase transactions.
2072 Chaitra5 Purchased on credit from Fikkal Store
15 Kg tea @ Rs. 200 per Kg
50 Kg sugar @ Rs. 30 per Kg
2072 Chaitra 9 Purchased from Sanju Furniture
One revolving chair at Rs. 3500
2072 Chaitra10 Purchased from Pawan Store on cash
10 Kg tea @ Rs. 190 per Kg
2072 Chaitra15 Purchased from Pravakar Trading House
3,000 packets of coffee @Rs. 20 per packet
100 Kg sugar @Rs. 29 per Kg
Less trade discount @ 10% on both
Purchase Book
Date Particulars LF Invoice No. Details Amount
Chaitra 5 Fikkal Store
15Kg tea @ Rs. 200 per Kg. 3,000
50Kg sugar @ Rs. 30 per Kg 1,500 4,500
Chaitra 15 Pravakar Trading House
3,000 packets coffee @ Rs. 20 per packet. 60,000
100 Kg sugar @ Rs. 29 per Kg. 2,900
62,900
Less: Trade discount @ 10% 6,290 56,610
Total 61,110
Purchase Return Book
Purchase book is primary book of entry which records the goods returned to supplier/
creditor which was previously purchased on credit for resale purpose. It is also known
as return outward book. Goods which are purchased on credit may be returned to the
supplier by the purchaser if they are defective and not within the specifications.
The entries in the purchase return book are usually made on the basis of debit note
issued to the suppliers or credit note received from the suppliers. We call it a debit
note because the party’s (supplier) account is debited with the amount written in this
note. The same note is termed as credit note from the receiving party’s point of view
because he will credit the account of the party from whom he has received the note
together with goods.
156 Office Practice and Accounting 9
Specimen
Purchase Return Book
Date Particulars Debit note no. LF Details Amount
Explanation of the columns
i. Date: The date of the goods returned is recorded in this column.
ii. Particulars: Particulars column records the name of the supplier and details of
items returned.
iii. Debit note no: Number of note issued by the supplier is recorded in this column.
iv. Ledger Folio (L.F.): Page number of the ledger account on which the respective
supplier’s transaction has been posted is mentioned in this column.
v. Details: It is the column to record sub-total of price of the goods returned.
vi. Amount: This column records the total price of the goods returned.
3. Record the following transactions in purchase return books.
1-Asoj-2070 : Return to XYZ traders:
20 jar coffee @ Rs. 80 per jar
40 packet tea @ Rs 50 per packet
15-Asoj-2070 : Return to ABC Ltd.
15 Kg sugar @ Rs. 30 per kg
35 packet ordinary tea @ Rs. 20 per packet
10% trade discount on both
Office Practice and Accounting 9 157
Purchase Return Book
Debit note Amount
Date Particulars LF
no. Detail (Rs.) Total (Rs.)
1-Asoj-2070 Return to XYZ traders:
20 Jar coffee @ Rs. 80/Jar 1,600
40 Packet tea @ Rs. 50/packet 2,000 3,600
15-Asoj-2070 Returned to ABC Ltd:
15 kg sugar @ Rs. 30/kg 450
35 packets tea @ Rs. 20/packet 700
1,150
Less: Trade discount 10% 115 1035
Total 4635
4. Prepare purchase return book of Pashupati House from the following
transactions:
i. Returned to Pampha Store
15 kg flour @Rs. 60 /kg
5 ltr oil @ Rs. 100 /ltr.
ii. Returned to ABC Traders
30 kg sugar @ Rs. 80 /kg
20 kg rice @ Rs. 90 /kg
Purchase return book
Date Particulars Debit note no. LF Details Amount
1 Pampha Store
15 kg flour @Rs. 60 /kg 900
5 ltr oil @ Rs. 100 /ltr. 500
1400 1400
2. ABC Traders.
30 kg sugar @ Rs. 80 /kg.
20 kg rice @ Rs. 90 /kg. 2,400
1,800 4200
Total 5600
158 Office Practice and Accounting 9
Sales Book
Sales book is primary entry which is maintained for record of the goods that sold
on credit. It is also known as sales day book or sales journal. Cash sale of goods and
credit sale of other goods that does not belong to business are not recorded in sales
book. For example, if a firm has a business of stationery the stationery items sold
on credit are recorded. Cash sales of stationery and credit sales of goods other than
stationery are not recorded in sales book.
Specimen
Sales Book
Date Particulars LF Invoice No. Details Amount
Explanation of the columns
i. Date: The date of the transaction is recorded in this column.
ii. Particulars: Particulars column records the name of the debtors and details of
items sold.
iii. Ledger Folio (L.F.): Page number of the ledger account on which the transaction
has been posted is mentioned in this column.
iv. Invoice no: This column is to record the invoice number issued to the debtors.
v. Details: It is the column to record sub-total of price of the goods.
vi. Amount: This column records the invoice price of the goods sold. This amount
is receivable from the debtors and transferred to the credit side of sales ledger.
5. Prepare sales book and sales account from the following particulars:
2072-08-1 : Sold to Hamal Traders
10 Electric Iron @ Rs. 300 each
5 Heating rod @ Rs. 200 each
Less trade discount 10% on both
2072-08-10 : Sold to Nabeen Electronics
15 table fans @ Rs. 500 each
5 table lamps @ Rs. 100 each
Office Practice and Accounting 9 159
Sales Book
Invoice Amount
Date Particulars LF
No. Detail (Rs.) Total (Rs.)
2072-08-1 Sold to Hamal Traders:
10 Electronic Iron @ Rs.300 /each 3,000
5 Heating rod @ Rs. 200 /each 1000
Less: Discount 10% 4,000
400 3,600
2072-08-10 Sold to Nabeen Electronics
15 Table fans @ Rs. 500 ever 7,500
5 table lamps @ Rs. 100 each 500 8,000
Total 11,600
6. Following sales transactions were given to you:
a. Sold following items to Pokhrel Store of Jhapa
10 table fans @ Rs. 1,100 per unit
5 ceiling fans @ Rs. 600 per unit
b. Sold following items to Suresh traders, Illam
12 pressure cookers @ Rs. 800 per units
8 rice cookers @ Rs. 1,000 per units
c. Sold 750 litre freeze for cash Rs. 12,000
Required: Sales book
Sales Book
Invoice Amount
Date No. Particulars LF Detail (Rs.) Total (Rs.)
a Pokhrel Store, Jhapa:
10 table fans @ Rs. 1,100/ unit 11,000
5 ceiling fan @ Rs. 600 / unit 3,000 14,000
b Suresh Traders, Illam:
12 pressure cooker @ Rs. 800 9,600
8 Rice cookers @ Rs. 1,000 8,000 17,600
Total 31,600
7. From the following transactions, prepare sales book of Nepal furniture.
2016 January 1 : Sold to Naya Store
10 Chairs @ Rs. 500 each
160 Office Practice and Accounting 9
15 Tables @ Rs. 800 each
12 Stools for Rs. 2,400
2016 January 9 : Sold to Kiran Furniture
1 Revolving chair for Rs. 2,000
20 Desks @ Rs. 300 each
10 Dozen doormats @ Rs. 50 per unit
Less 10% trade discount for all
Sales Book
Invoice Amount
Date Particulars LF
No. Detail (Rs.) Total (Rs.)
2004-1-1 Naya Store:
10 Chairs @ Rs. 500 each 5,000
15 tables @ Rs. 800 each 12,000
12 Stools @ Rs. 200 each 2,400 19,400
2004-1-9 Kiran Furniture:
1 Revolving chair 2,000
20 Desks @ Rs. 300 each 6,000
10 Dozen doormat @ Rs. 50/unit 6,000
14,000
Less: Trade discount 10% 1,400 12,600
Total 32,000
Sales return book
Sales return book is primary book of entry which is maintained to record the amount
and quantity of goods which was sold to debtor on credit. It is also known as return
inward book.
This book is used to record all returns of goods to the business by the customers. The
entries in the sales return book are usually on the basis of credit notes issued to the
customers or debit notes issued by the customers.
Specimen
Sales Return Book
Credit
Date Particulars LF Details Amount
note no.
Office Practice and Accounting 9 161
8. Post the following transactions into sales return book.
2015 Aug. 11 Bhaktapur Store
20 TT Bats@Rs. 100 each
9 Footballs @Rs. 500 each
Aug. 17 ABC Sports
50 Chess @ Rs. 30 each
4 volley balls @ Rs. 100 each
trade discount of 5% on both
Solution:
Sales return book
Credit
Date Particulars LF Details Amount
note no.
Aug 11 Bhaktapur Store
20 TT Bats @Rs. 100 each 2000
9 Footballs @Rs. 500 each 4,500 6,500
Aug 17 ABC Sports
50 Chess @ Rs. 30 each 1,500
4 Volleyball @ Rs. 100 each 400
1,900
Less: 5% Trade discount. 95 1805
Total 8,305
9. From the following particulars, prepare sales return book.
2070-1-1 : Return from Ram,
10 Trousers @ Rs. 200 each,
5 T-shirts @ Rs. 150 each
Original trade discount 10%
2070-1-10 : Returned from Hari,
20 Sweaters @ Rs. 300 each,
15 Jackets for 6,000
162 Office Practice and Accounting 9
Sales return book
Amount
Date Invoice Particulars LF Detail (Rs.) Total (Rs.)
No.
070-1-1 From Ram:
10 trousers @ Rs. 200 each 2,000
5 T-shirts @ Rs. 150 each 750
2750
Less: Trade discount 10% 275 2,475
070-1-10 From Hari:
20 Sweater @ Rs. 300 each 6,000
15 Jackets @ Rs. 400 each 6,000 12,000
Total 14,475
Cash Book
Cash book is one of the most important books maintained in any business concern.
It is a financial journal that contains all cash receipts and payments, including bank
withdrawals. It records transactions connected with cash and bank. The cash book, a
sub division of the book of original entry, records transactions relating to receipts or
payments of cash. It has two sides i.e. 'debit side' in which all receipts are to be recorded
and 'credit side' where all payments are to be recorded. The main objective of the cash
book is to keep a daily record of transactions relating to receipt and payment of cash.
Cash book is a book of primary (original) entry. Besides being a book of original entry,
the cash book also serves as a ledger account. The cash book and the cash amount in
the ledger being the same, there is no need to open separate cash account in the ledger.
At the same time the accounts which are affected by cash payment and cash receipt
are posted in the ledger. That is, the entry from the debit side of cash book should be
posted to the credit side of individual accounts opened in the ledger; and the entries
from the credit side should be posted to the debit side of the concerned account.
The following are the different types of cash book:
1. Simple/Single column cash book
2. Double column cash book
i. Cash book with cash and bank column
ii. Cash book with cash and discount column
iii. Cash book with bank and discount column (Bank Book)
3. Triple column cash book
Office Practice and Accounting 9 163
Simple/Single Column Cash Book
This type of cash book makes a record of all the receipts and payment of cash. All cash
receipts are recorded in debit side and all the payments are recorded in credit side of
this book. It makes a record of only cash transactions and it is just like cash account.
It is similar to cash ledger and, of course there is no need to maintain separate cash
ledger if it is maintained. The specimen of cash book is presented below:
Dr. Simple cash book Cr.
Date Particulars LF Amount Date Particulars LF Amount
Explanation of the columns
a. Date: Date of transactions are recorded in this column.
b. Particulars: In this column the name of account in respect of which cash has
been received or payment has been made is recorded. If cash received, it is
recorded in debit side of particulars and if cash is paid, it is recorded in credit
side of the particulars column.
c. LF: In this column page number of ledger where the posting of this amount has
been made is written.
d. Amount: The amount of particular transaction in respective sides is written in
this column.
10. From the following transactions prepare the single column cash book.
2072 Chaitra1 : Cash in hand Rs. 28000
2072 Chaitra3 : Cash received from Amit Rs. 1200
2072 Chaitra5 : Goods purchased for cash Rs. 3300
2072 Chaitra7 : Goods sold for cash Rs. 2,000
2072 Chaitra8 : Paid wages Rs. 1000
2072 Chaitra9 : Purchased furniture for Rs. 9,000
2072 Chaitra11 : Purchased goods from Puri Rs. 1,500
2072 Chaitra12 : Sold goods to Bhuwan for Rs. 6900
2072 Chaitra18 : Paid for advertisement Rs. 800
164 Office Practice and Accounting 9
Dr. Single column cash book Cr
Date Particulars LF Amount Date Particulars LF Amount
Chait. 1 To Balance b/d 28,000 Chait.5 By Purchases A/C 3,300
Chait.3 To Amit A/C 1,200 Chait.8 By Wages A/C 1000
Chait.7 To Sales A/C 2,000 Chait.9 By Furniture A/C 9,000
Chait.18 By Advertisement A/C 800
Chait.31 By Balance c/d 17,100
31,200 31,200
Bai. 1 To Balance b/d 17,100
11. Enter the following transactions in a single column cash book.
Jestha 1 : Opening balance cash Rs. 22,000
Jestha 2 : Cash received from Pratima Rs. 6,000
Jestha 3 : Cash paid to creditor Rs. 7,000
Jestha 5 : Furniture sold for Rs. 12000
Jestha 8 : Salary paid Rs. 8000
Jestha 10 : Purchased goods from Hira for Rs.3000
Dr Simple cash book Cr
Date Particulars LF Rs. Date Particulars LF Rs.
Jestha 1 To Balance b/d 22,000 Jestha 2 By Pratima A/c 6000
Jestha 3 To Creditor A/c 7,000 Jestha 8 By Salary A/c 8,000
Jestha 5 To Furniture A/c 12,000 Jestha 31 By Balance C/d 27,000
41,000 41,000
Ashar 1 To Balance b/d 27,000
Double Column Cash Book
i. Cash book with cash and bank column
The cash book in which cash account and bank account both are prepared is known
as cash book with cash and bank .This cash book is very useful to those business firms
who deal with the receipts and payments in cash and by cheque. All receipts in cash
and by cheque are recorded in debit side and all payments in cash and by cheque
are recorded in credit side. The specimen of double column cash book with cash and
bank column is presented below.
Office Practice and Accounting 9 165
Dr Cash Book with Cash and Bank Column Cr
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
Contra Entry
Contra entry appears while preparing double column cash book with bank column
and triple column cash book. When a transaction affects both sides (i.e. Debit and
Credit) of double and triple column cash book by equal amount on same date, it is
known as Contra Entry. In such case, the transaction is recorded in the cash column
on one side and in bank column on the other side. Contra entry is denoted by letter
“C” and it occurs in case of following two transactions:
i. While depositing cash into bank
ii. While drawing cash from bank for office use.
12. From the given information, prepare double column cash book with
cash and bank column for the month of August.
August 1 : Cash balance Rs. 15,000 and bank balance Rs. 8,000
August 2 : Goods of Rs. 2,000 purchased on cash
August 5 : Cash Rs. 4,000 deposited into bank
August 7 : Rent paid Rs. 1,000 through cheque
August 8 : Goods of Rs. 3,000 sold to Dinesh
August 9 : Cash Rs. 3,000 drawn for office use from bank
August 13 : Dinesh paid Rs. 2,950 in full settlement
August 15 : A cheque of Rs. 1,150 deposited in bank for the interest income
August 19 : A cheque of Rs. 4,000 issued to Mahesh
166 Office Practice and Accounting 9
Double Column Cash Book
Dr (With Bank and cash column) Cr.
Date Particulars LF Bank Cash Date Particulars LF Bank Cash
Aug-1 To Bal B/d 8,000 15,000 Aug-2 By Purchase A/c – 2,000
Aug-5 To Cash A/c C 4,000 – Aug-5 By Bank A/c C – 4,000
Aug-9 To Bank A/c C – 3,000 Aug-7 By Rent A/c 1,000 –
Aug-13 To Dinesh A/c – 2,950 Aug-9 By Cash A/c C 3,000 –
Aug-15 To Interest A/c 1,150 Aug19 By Mahesh A/c 4,000 –
Aug30 By Balance C/d 5,150 14,950
13,150 20,950 13,150 20,950
Sept-1 To Balance b/d 5,150 14,950
ii. Cash book with cash and discount column
The Cash book in which an extra column is added to record the transactions of
discount, is known as cash book with cash and discount column. Its main objective
is to reduce the burden of accountant and save the time by merging two ledgers
into one. In cash column, cash receipts and payments are recorded and in discount
column, discount received and allowed is recorded.
The specimen of double column cash book with cash and discount column is presented
below:
Dr Cash Book with Cash and Discount Column Cr.
Date Particulars LF Discount Cash Date Particulars LF Discount Cash
13. You are given the following transactions:
Baishakh–1 : Opening balance of cash Rs. 14,000
Baishakh–2 : Goods of Rs. 15,000 sold
Baishakh–5 : Commission Rs. 500 received
Baishakh–8 : Furniture of Rs. 2,000 purchased from Mr. A
Baishakh–10 : Rent Rs. 3,000 paid
Baishakh–15 : Goods of Rs. 1,000 sold to Mr. B
Baishakh–20 : Cash Rs. 1,900 paid to Mr. A in full settlement
Baishakh–25 : Salary Rs. 1,500 Paid
Baishakh–28 : Rs. 990 received from Mr. B in full settlement
Required: Double column cash book with discount and cash column
Office Practice and Accounting 9 167
Double Column Cash Book
Dr (With discount and cash column) Cr
Date Particulars LF Dis. Cash Date Particulars LF Dis. Cash
Bai.1 To Bal b/d 14,000 Bai.10 By Rent A/c 3,000
Bai.2 To Sales A/c 15,000 Bai.20 By Mr. A. A/c 100 1,900
Bai.5 To Commission 500 Bai.25 By Salary 1,500
Bai.28 To Mr. B. 10 990 Bai.30 By Balance c/d 24,090
10 30,490 100 30,490
Jes.-1 To Bal. b/d 24,090
iii. Cash book with bank and discount column (Bank Book)
Especially in big firms transactions are not done in cash. All receipts are deposited
into bank and all payments are made through cheques. In such case, it is convenient
to the business firms to prepare the double column cash book with bank and discount
column instead of cash book. All direct deposits and cheques received debited
and all direct payments and payments through cheques credited to this book. It is
assumed that all transactions in business are done from bank so only bank column
is required to record the transactions. So it is also called bank book instead of cash
book. Similarly, discounts allowed are debited and discounts received are credited
to discount column. The specimen of Cash Book with Bank and Discount Column is
presented below:
Dr (With discount and cash column) Cr
Date Particulars LF Dis. Bank Date Particulars LF Dis. Bank
14. Prepare double column cash book with discount and bank column for
the month of Paush from the following transactions:
Paush 1 : Balance at bank Rs. 6,000
Paush 5 : Goods of Rs. 4,000 purchased from Ram
Paush 7 : Furniture of Rs. 9,000 sold to Hari
Paush 10 : Rent Rs. 3,000 paid through cheque
Paush 15 : Cash Rs. 19,000 deposited
Paush 19 : A cheque of 5,000 received from Dinesh
Paush 22 : A cheque of Rs. 3,900 issued to Ram in full settlement
Paush 25 : Hari paid Rs. 8,600 through cheque in full settlement
168 Office Practice and Accounting 9
Double Column Cash Book
Dr (With Bank and discount column) Cr
Date Particulars LF Dis. Bank Date Particulars LF Dis. Bank
P.-1 To Bal. B/d 6,000 P.-10 By Rent A/c 3,000
P.-15 To Cash / A/c 19,000 P.-22 By Ram A/c 100 3,900
P. -19 To Dinesh A/c 5,000 P.-30 By Balance c/d 31,700
P.-25 To Hari A/c 400 8,600
400 38,600 100 38,600
Mgh.-1 To Bal. b/d 31,700
Triple Column Cash Book
Triple column cash book is the book having three columns on both debit and credit
side. It includes cash, bank and discount columns to record the respective transactions
in respective columns. All cash receipts, cheques and bank deposits are recorded
in debit side and all cash payments, withdrawals and cheques issued are recorded
in credit side of the book. Similarly, discounts allowed are debited and discounts
received are credited to discount column. The specimen of triple column cash book is
presented below:
Dr Triple Column Cash Book Cr
Date Particulars LF Dis. Cash Bank Date Particulars LF Dis. Cash Bank
15. You are given the following transactions for the month of Asoj:
Asoj 1 : Cash Balance Rs. 80,000; Bank Balance (Cr.) Rs. 10,000
Asoj 2 : Goods of Rs. 9,000 purchased from Ramesh
Asoj 5 : Furniture of Rs. 10,000 sold to Himal
Asoj 6 : Cash Rs. 35,000 deposited into bank
Asoj 7 : Rent Rs. 2,000 paid through cheque
Asoj 9 : Rs. 9,900 received from Himal in full settlement of the account
Asoj 13 : A cheque of 8,500 issued to Ramesh to settle the account
Asoj 15 : Cash Rs. 11,000 drawn for office use
Asoj 18 : Commission paid Rs. 1,000 through cheque
Asoj 19 : A cheque of 4,000 received from Santosh deposited into bank
Required: Triple column cash book
Office Practice and Accounting 9 169
Dr Triple Column Cash Book Cr
Date Particulars LF Dis Cash Bank Date Particulars LF Dis Cash Bank
Asoj.1 To Bal b/d – 80,000 – Asoj.1 By Balance b/d – – 10,000
Asoj.6 To Cash A/c C – – 35,000 “ - 6 By Bank A/c C – 35,000 –
Asoj.9 To Himal A/c 100 9,900 – “ – 7 By Rent A/c – – 2,000
Asoj.15 To Bank A/c C – 11,000 – “ – 13 By Ramesh A/c – 5,00 – 8,500
Asoj.19 To Santosh A/c – – 4,000 “ – 15 By Cash A/c C – – 11,000
“ – 18 By Commission – – 1,000
“ – 30 By Balance c/d – 65,900 6,500
1,00,900 39,000 1,00,900 39,000
Kartik-1 To Balance b/d 65,900 6,500
16. You are given the following cash and banking transactions:
Chaitra 1 : Cash in hand Rs. 10,000 and cash at bank (Credit) Rs. 50,000
Chaitra 6 : Received cheque of Rs. 5,700 from a customer after deducting 5%
discount
Chaitra 12 : Paid in cash Rs. 1,900 in full settlement of Rs. 2,000
Chaitra 18 : Cash deposited into bank Rs. 1,000
Chaitra 24 : Sale of 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 column
Dr Triple Column Cash Book Cr
Date Particulars LF Dis Cash Bank Date Particulars LF Dis Cash Bank
12–1 To Balance b/d – 10,000 – 12 –1 By Balance b/d – – 50,000
12–6 To Debtors 300 5,700 12–12 By Creditor 100 1,900 –
12–18 To Cash C – 1,000 12–18 By Bank C – 1,000 –
12–30 To Sales 1,000 4,000 25,000 12–30 By Balance c/d – 11,100 –
12–30 To Balance c/d – 18,300 – – –
14,000 50,000 14,000 50,000
170 Office Practice and Accounting 9
Practical Problems
1. The following transactions relating to credit sales are given to you.
a. Sold to Mr. Yadav
400 Water Pumps @ Rs. 500
b. Sold to Karmacharya
20 Mopeds @ Rs. 20,000
c. Sold to Karki
4 Kerosene Generations @ Rs. 40,000
Required: Sales Book
Ans: Rs. 7,60,000
2. Following are the transactions relating to credit sales:
a. Sold to Rai and Sons Udayapur:
110 Fan Heaters @ Rs. 400 per heater
b. Sold to Kumar Store of Bhojpur:
55 Table Fans @ Rs. 600 per fan
c. Sold to Rampur Store of Rampur:
40 Electric Heater @ Rs. 300 per heater
Required: Sales book
Ans: Rs. 89,000
3. Following sales transactions are given to you:
a. Sold following items to Kumar Bros. of Jhapa
i. 10 table fans @ Rs. 1100 per unit
ii. 5 ceiling fans @ Rs. 600 per unit
b. Sold following items to Serchan Bros. of Pokhara:
i. 12 Pressure Cookers @ Rs. 800 per unit
ii. 8 Rice Cookers @ Rs. 1000 per unit
c. Sold a 750 litters Freezer for cash Rs. 12,000
Required: Sales Book
Ans: Rs. 31,600
4. Following purchase transactions are given to you:
2073 Magh 5 Purchased on credit from B & B Markets:
- 15 kg tea @ Rs. 200 per kg
- 50 kg sugar @ Rs. 30 per kg
2073 Magh 10 Purchased from Agrawal Traders on cash
- 10 kg tea @ Rs. 190 per kg
Office Practice and Accounting 9 171
2073 Magh 15 Purchased from Suraj & Co.
- 3000 lb coffee @ Rs. 20 per lb.
- 100 kg sugar @ Rs. 29 per kg.
Less: Trade discount @ 10% on both
Required: Purchase Book
Ans: Rs. 61,110
5. Following purchase return transactions are given to you:
Baisakh 3 Return to Hari
2 Tape Records of Rs. 1,000 each
1 Radio of Rs. 500
Baishak 5 Return to Bishnu
2 Television sets of Rs. 5,000 each (10% trade discount)
Baishak 8 Return to Narayan
3 Telephone sets of Rs. 1,000 each
4 Heater sets of Rs. 2,000 each
Required: Purchase Return Book Ans: Rs. 22,500
6. Following are the transactions relating to purchase:
a. Purchase from Mr. Damodar of Butwal
i. 10 ceiling fans @ Rs 900 per unit
ii. 12 table fans @ Rs. 1,000 per units
b. Purchase from Mr. Kumar of Tansen
i. 15 pressure cookers @ Rs. 600 per unit
ii. 10 electric stoves @ Rs. 250 per unit
Less: Trade Discount @ 10% on both
Required: Purchase Book
Ans: Rs. 31,350
7. Following are the transactions relating to return:
Ashad 3 Returned to Prakash:
3 radios @ Rs. 2000 each
2 DVD players @ Rs. 5000 each
Ashad 5 Returned from Ram:
1 Cassette Player: Rs. 2,500
Ashad 7 Returned to Hari:
2 CD players: R. 3,000 each
5 Radios: Rs. 500 each
Required: Purchase Return Book
Ans: Rs. 24,500
172 Office Practice and Accounting 9
8. Following are the transactions relating to purchase:
5 April 2016 Purchased on credit from Palpa Furniture Works:
20 Chairs @ Rs. 800 per unit
10 Coffee Tables @ Rs. 2,000 per unit
11 April 2016 Purchased from Kapilvastu Furniture Co. for cash:
10 Sofa Sets @ Rs. 10,000 per set, 10% cash discount
15 April 2016 Purchased on credit from Vajra Traders:
5 Fancy Tables @ Rs. 5,000 per unit
5 Dressing Tables @ Rs. 10,000 per set at 10% trade discount
Required: Purchase Book
Ans: Rs. 1,06,000
9. Following transactions of Rajesh Furnitures are given:
Magh 7 Purchased on credit from Aman
10 Tables @ Rs. 500 each
30 Chairs @ Rs. 400 each
Discount at 10% for both sales
Magh 15 Purchased from Bimal for cash
2 Alamirahs @ Rs. 4,000 each
1 Sofa Set @ Rs. 7,000 each
Magh 20 Purchased computer for office use from Hari on credit Rs. 35,000
Magh 28 Purchased from Rahul
20 Tables @ Rs. 600 each
15 Chairs of Rs. 400 each
Required: Purchase Book
Ans: Rs. 33,300
10. Following are the transactions relating to purchase:
Magh 10 Purchased books on credit from Pathivara Books
20 pieces Economics Rs. 350 each
15 pieces Book Keeping Rs. 400 each
10% trade discount on both
Magh 20 Purchased books on credit from Panchakanya Books
10 pieces Marketing Rs. 300 each
10 pieces Book Keeping Rs. 400 each
Required: Purchase Book
Ans: Rs. 18,700
Office Practice and Accounting 9 173
11. Raj is a book dealer. His transactions for the month of Falgun are given
below
Falgun 5 Sold to Hari
30 pieces Book Keeping @ Rs. 300 each
20 pieces Economics @ Rs. 200 each
Falgun 25 Sold to Krishna
15 pieces Economics @ Rs. 200 each
10 pieces Marketing @ Rs. 200 each
10% discount allowed on all above sales
Required: Sales Book
Ans: Rs. 17,500
12. Following are the transactions relating to purchase return:
Baisakh 2 Returned to Ram:
5 Electricity Fans @ Rs. 1,000 per unit
1 Tape Recorder @ Rs. 800 per unit
Baisakh 10 Returned to Shyam:
5 Room Heaters @ Rs. 900 per unit (10% Trade Discount)
2 Radios @ Rs 500 per unit
Required: Purchase Return Book
Ans: Rs. 10,850
13. Following transactions are given:
Jestha 7 : Purchased from Naresh Stores
50 bags of rice @ Rs. 5,000 per bag
400 Kgs of sugar @ Rs. 65 per kg.
Trade discount received at 5% on rice
Jestha 15 : Purchased from Gopal & Brothers
500 kgs of Ghee @ Rs. 400 per kg.
200 kgs of Cheese @ Rs. 350 per kg.
Required: Purchase Book
Ans: Rs. 5,33,500
14. Following purchase related transactions are given:
Chaitra 5 Purchased from Sajha Oil Store
50 liters petrol @ Rs. 116 per liter
100 liters diesel @ Rs. 85 per liter
174 Office Practice and Accounting 9
Chaitra 10 Purchased from Pulchowk Oil Store:
100 liters of petrol @ Rs. 116 per liter
200 liters of diesel @ Rs. 85 per liter
Chaitra 25 Purchased from Rim furniture for cash:
10 tables @ Rs. 5,000 per table
Required: Purchase Book
Ans: Rs. 42,900
15. Following are the transactions relating to purchase:
Ashadh 2 Credit purchase from Mahesh
20 V.C.D.s @ Rs. 300 per unit at 10% trade discount
30 D.V.D.s @ Rs. 500 per unit
Ashadh 20 Credit purchase from Pashupati
100 unit Audio C.D.s @ Rs. 200 per unit
100 unit Audio cassettes @ Rs. 50 per unit
Required: Purchase Book
Ans: Rs. 45,400
16. Following cash and banking transactions are given:
2072 Falgun 1 Balance of cash in hand Rs. 25,000 and at bank Rs. 30,000
2072 Falgun 2 Bought goods and paid by cheque Rs. 10,000
2072 Falgun 8 Goods purchased for cash Rs. 5,000
2072 Falgun 9 Goods sold for cash Rs. 10,000
2072 Falgun 10 Deposited into bank Rs. 10,000
2072 Falgun 12 Withdrawn cash from bank Rs. 5,000 for office use
Required: Cash book with cash and bank column.
Ans: Cash Rs. 25,000, Bank Rs. 25,000
17. Prepare cash book with necessary columns from the given cash and
banking transactions:
January 1 Cash and bank balance Rs. 25,000 and Rs. 3,000 respectively
January 5 Goods of Rs. 13,000 purchased from Sanjay
January 8 Furniture of Rs. 10,000 sold to Anil
January 9 Cash Rs. 2,000 deposited into bank
January 14 Cash received from Anil Rs. 9,600 in full settlement
January 15 Cash drawn from bank Rs. 15,000 for office use
Office Practice and Accounting 9 175
January 18 Cash Rs. 12,500 paid to Sanjay in full settlement
January 20 Rent paid Rs. 5,000
Ans: Cash Rs. 30,100, Bank Rs. 10,000 (Cr.)
18. Prepare triple column cach book with Rs. 450 in hand and Rs. 6,500 in
bank.
2nd October 2015 Received cheque from Ali Rs. 620 (in full settlement of a
debt Rs. 650)
3rd October2015 Cash sales Rs. 250
10th October2015 Sales of machinery payment received in cheque Rs. 2,500
15th October2015 Deposited into bank the cheque of Rs. 620 & Rs. 2,500
Ans: Cash Rs. 700 (Cr.), Bank Rs. 9,620
19. Enter the following transactions in a triple column cash book.
1st -3-2070 Balance of cash in hand Rs. 4,000 and at bank Rs. 10,000
2nd -3-2070 Received cash from Alok Rs. 1,000 and allowed him a
discount of Rs. 30
3rd -3-2070 Paid into bank Rs. 2,000
8th -3-2070 Drew Rs. 900 for office use and Rs. 100 for personal use
9th -3-2070 Made cash purchases of Rs. 1,500 after receiving a discount
of Rs. 200
Ans: Cash Rs. 2,400, Bank Rs. 11,000
20. Enter the following transactions into cash book with bank and discount
columns.
1 Baishak Bank balance b/d Rs. 40,000
4 Baishak Drawn for office use Rs. 5,000
6 Baishak Sharma paid Rs. 4,500 in settlement of his debts of Rs. 5,000
10 Baishak Purchased goods for Rs. 10,000
10 Baishak Deposited into bank Rs. 3,000
15 Baishak Sold goods for cash Rs. 6,000
Hint: Assume all transactions are made from bank
Ans: Bank Rs. 38,500
21. Following cash transactions for the month of Paush 2072 are given to
you:
Paush 1, Balance of cash in hand Rs. 13,200
Paush 5, Paid Rs. 7,200 for purchase of goods after deduction of Rs. 50 as
discount
176 Office Practice and Accounting 9
Paush 7, Received cash Rs. 4,500 from Kumar after deducting of Rs. 75 as
discount
Paush 10, Sold goods for Rs. 3,500 and received cheque for the same
Paush 20, Paid wages of Rs. 500
Paush 30, Paid Rs. 1,275 of Ramlal after dedicating discount of Rs. 25
Required: Double column (cash and discount column) cash book
Ans: Cash Rs. 8,725
22. Following cash & banking transactions were given to you for the month
of Paush:
1 Balance of cash in hand Rs. 4,500 and at bank Rs. 21,500
5 Paid to bank Rs. 4,000
10 Sold goods for Rs. 7,000 and received cash Rs. 4,000 and cheque of Rs.
2,900 in full payment
15 Withdrew Rs. 12,000 from bank for office use
28 Paid Rs. 15,000 for purchase of goods and received discount of Rs. 200
Required: Cash book with Cash and Bank column
Ans: Cash Rs. 1500, Bank Rs. 16,400
23. Following Cash and Banking transactions are given to you:
2015 April 1 Cash in hand Rs. 475, Balance at Bank Rs. 4,965
2015 April 5 Bought goods and paid by cash Rs. 400 and by cheque Rs. 650.
2015 April 10 Paid Archana's account of Rs 600, less discount at 2%
2015 April 15 Cash sales Rs. 750
2015 April 20 Deposited in bank Rs. 375
2015 April 25 Received cash Rs., 1,900 from Nanu after deducting discount
of Rs. 100
Required: Cash Book with cash, Bank and Discount column
Ans: Cash Rs. 1,762, Bank Rs. 4,690, Discount Rs. 88
24. Following Cash and Banking transactions are given:
Ashadh 1 Cash in hand Rs. 2,000
Ashadh 2 Cash sales Rs. 12,000
Ashadh 5 Deposited in Bank Rs. 10,000
Ashadh 7 Paid to Ram by cheque Rs. 5,300
Discount received from Ram Rs. 200
Office Practice and Accounting 9 177
Ashad 9 Received a cheque form Shyam of Rs. 3,900 and paid into bank.
Allowed him discount of Rs. 100
Ashad 10 Withdrew Rs. 2,000 from the bank for office use
Required: Triple Column Cash Book
Ans: Cash Rs. 6,000, Bank Rs. 6,600, Discount nill
25. Following Cash and Banking transactions are given:
2072 Kartik 1 Balance of cash in hands Rs. 7,500 and at bank Rs. 22,500
2072 Kartik 15 Paid cash to bank Rs. 4,000
2072 Kartik 22 Purchases goods from Naresh for Rs. 9,000 and issued a cheque
of Rs. 4,000 only as part payment
2072 Kartik 27 Withdrawn cash from bank Rs. 6,500 for office use
Required: Cash Book with Cash and Bank column
Ans: Cash Rs. 10,000, Bank Rs. 16,000
26. Following Cash and Banking transactions are given:
March 1 Balance of cash in hand Rs. 25,000 and at bank Rs. 30,000
March 5 Purchased goods and issued a cheque Rs. 10,000
March 6 Goods sold for cash Rs. 15,000
March 8 Paid cash into Bank Rs. 25,000
Required: Cash Book with cash and bank column
Ans: Cash Rs. 15,000 Bank Rs. 45,000
27. Following Cash and Banking transactions are given:
Falgun 1 Balance of cash in hand Rs. 50,000, cash at bank Rs. 60,000
Falgun 2 Bought furniture and paid from bank Rs. 10,000
Falgun 8 Goods purchased for cash Rs. 5,000
Falgun 9 Goods sold for cash Rs. 10,000
Falgun 10 Bank deposit Rs. 20,000
Falgun 12 Withdrawn cash from bank Rs. 15,000 for office use
Required: Cash Book with cash and bank column
Ans: Cash Rs. 50,000, Bank Rs. 55,000
28. You are given the following Cash and Banking transactions:
Chaitra 1 Cash in hands Rs. 10,000 and cash at bank (Credit) Rs. 50,000
Chaitra 6 Received cheque of Rs. 5,700 from a customer after deducting 5
percent discount
Chaitra 12 Paid by cash Rs. 1,900 in full settlement of Rs. 2,000
Chaitra 18 Cash deposited into Bank Rs. 1,000
178 Office Practice and Accounting 9
Chaitra 24 Sale of 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 Bank and Discount columns.
Ans: Cash Rs. 11,100, Bank Rs. 18,300 (Cr.), Discount Rs. 1,200
29. Following Cash and Banking transactions are given:
2070 Shrawan 1 Balance of cash in hand Rs. 20,000 and cash at bank Rs.
50,000
2070 Shrawan 5 Goods purchased and paid through cheque Rs. 20,000
2070 Shrawan 10 Goods sold for cash Rs. 30,000
2070 Shrawan 15 Purchased furniture and paid through cheque Rs. 10,000
2070 Shrawan 20 Deposited into bank Rs. 40,000
2070 Shrawan 25 Withdrawn cash Rs. 10,000 from bank for office purpose
Required: Cash book with cash and bank column
Ans: Cash Rs. 20,000, Bank Rs. 50,000
30. The following transactions are given:
Shrawan 1 Cash in hand Rs. 10,000 and cash at bank Rs. 1,00,000
Shrawan 5 Received cash Rs. 19,000 from the debtors after deducting
discount at 5%
Shrawan 10 Paid cash Rs. 2,900 in full settlement of Rs. 3,100
Shrawan 25 Purchased goods for Rs. 20,000 and paid Rs. 5000 in cash. The
balance amount is paid through cheque after receiving discount
of Rs. 200.
Shrawan 28 Cash deposited into bank Rs. 13,000
Required: Triple Column Cash Book
Ans: Cash Rs. 9,100, Bank Rs. 98,200, Discount Rs. 600
31. Following Cash and Banking transactions are given:
Falgun 1 Cash in hand Rs. 20,000 and cash at bank Rs. 50,000
Falgun 2 Received from Maharjan Rs. 9,500 in full settlement of account
RS. 10,000
Falgun 5 Deposited in bank Rs. 10,000
Falgun 8 Purchased goods for Rs. 15,000 and paid Rs. 9,000 through
cheque and the balance amount is paid in cash after receiving
discount of Rs. 500
Falgun 9 Withdrawn cash from bank 5,000 for office use
Required: Triple Column Cash Book
Ans: Cash Rs. 19,00, Bank Rs. 46,000, Discount nill
Office Practice and Accounting 9 179
32. Following transactions are given:
Bhadra 1 Balance at bank Rs. 1,00,000 and cash in hand Rs. 50,000
Bhadra 7 Received cheque for sale of goods Rs. 25,000
Bhadra 12 Cash deposited into bank Rs. 20,000
Bhadra 18 Issued a cheque of Rs. 9500 in favour of Ramesh in settlement
of Rs. 10,000
Bhadra 24 Received Rs. 25,000 from debtors in cash
Bhadra 27 Issued a cheque of Rs. 35,000 for the payment of salary of the
month
Required: Cash book with cash, bank and discount columns.
Ans: Cash Rs. 55,000, Bank Rs. 1,00,500, Discount Rs. 500 (Cr.)
33. Following Cash and Bank transactions are given:
Paush 1 Balance of cash in hand Rs. 30,000 and cash at bank Rs. 1,00,000
Paush 6 A cheque of Rs. 14,500 received from a debtor and settled his
account of Rs.15,000
Paush 10 Issued a cheque of Rs. 2,700 in favour of a creditor after
receiving discount at 10%
Paush 17 Cash deposited into bank Rs. 5,000
Paush 25 Paid salary of Rs. 30,000 through cheque
Paush 28 Paid house rent by cash Rs. 10,000
Required: Triple column cash book
Ans: Cash Rs. 15,000, Bank Rs. 86,800, Discount Rs. 200
34. Following Cash and Banking transactions are given:
Magh 1 Cash in hand Rs. 25,000
Magh 2 Goods sold for cash Rs. 20,000
Magh 4 Cash deposited into bank Rs 30,000
Magh 8 Purchased goods worth Rs. 10,000 and paid Rs. 6,000 in cash
and balance through cheque
Magh 10 Withdrawn Rs. 10,000 cash from bank for office use
Magh 15 Salary paid by cheque Rs. 5,000
Required: Cash Book with cash and bank columns
Ans: Cash Rs. 19,000, Bank Rs. 11,000
180 Office Practice and Accounting 9
UNIT
12 Trial Balance
Learning objectives:
After the completion of this unit, students will be able
to understand:
• meaning and definitions of trial balance.
• objectives of trial balance.
• preparation of trial balance.
• accounting errors.
Office Practice and Accounting 9 181
12 Trial Balance
The fundamental principle of Double Entry System of accounting is that for every
debit entry there must be a corresponding credit entry. In the preparation of journal
as well as ledger, both aspects of transaction are taken into account. Thus for every
debit there is a corresponding credit of an equal amount given to some other account
and vice versa. This implies that the total of debit amount must be equal to the total
of credit amount. If journal entries are correctly posted to different ledger accounts,
the total of all debit posting in the trial balance must be equal to the total of credit
posting in trial balance. If debit totals or balances do not tally with the credit totals or
balances, it means that some mistake has crept in.
Trial balance is the statement of debit and credit balances of ledger balances, which is
prepared to check the arithmetical accuracy of journal and ledger after certain interval
of time. Total of debit and credit side of trial balance must be equal. If it is not equal,
there is arithmetical error either in journal or ledger.
Definitions
According to R. N Carter: "Trial balance is the list of debit and credit balance,
taken out from ledger, it also includes the balance of cash and bank taken from
cash book."
In the words of Pickles: "The statement prepared with the help of ledger
balance, at the end of financial year (or at any other date) to find out whether
debit total agrees with credit total is called trial balance."
Thus, we can say that trial balance is a statement in which the debit and credit balances
of all accounts are recorded with the view to ascertain the arithmetical accuracy of the
books of accounts.
The following are the main objectives of trial balance.
a. To check arithmetical accuracy: A trial provides a good check on the accuracy
of the work done in preparing the ledger accounts. If the trial balance agrees,
182 Office Practice and Accounting 9
it proves that books are arithmetically accurate and that both the aspects of the
transactions have been correctly recorded in the books of original entry as well
as in the ledger. But if the trial balance totals do not agree, then it shows that
there are some arithmetical errors.
b. To help in preparing the final account: Trading account, Profit and Loss
Account and Balance Sheet are together known as final account. The trial
balance facilitates to prepare the trading and Profit and Loss Account which
reveals the profitability of the firm. Similarly, it helps to prepare balance sheet
to reflect the financial status of the firm.
c. To help to locate errors: Total of debit and credit side of trial balance must be
equal. If it is not equal, there is arithmetical error either in journal or ledger.
The trial balance helps to locate the arithmetical errors which can be rectified in
time.
d. To present the summary: Trial balance is a list or statement of ledger balances.
It gives the summarized data of assets, expenses, capital, income and liabilities,
at a glance.
Advantages/Importance of trial balance
i. It helps to check arithmetical accuracy of journal and ledger.
ii. It helps to find out and rectify the error located.
iii. It is helpful in internal audit of the organization.
iv. It helps to summarize the financial transactions.
v. It is helpful in preparation of final account.
vi. It helps to provide information of capital, income, liabilities, assets and expenses
at a glance.
SPECIMEN OF TRIAL BALANCE
Trial Balance of..........................
As on..........................
S.N. Particular LF Dr. (Rs.) Cr. (Rs.)
1 2 3 4 5
Office Practice and Accounting 9 183
Explanation of the columns
At the top of the trial balance, name of the company or firm is written along with the
date, on which trial balance is prepared.
1. In this column, serial number of account heads is written.
2. This column is to write the name of account heads.
3. Ledger folio (i.e. page number of ledger) is written in this column.
4. This column is to write debit amount of respective account.
5. Credit amount of corresponding account is written in this column.
Methods of preparing trial balance
There are three methods of preparing trial balance. They are:
1. Total Method: According to this method, the debit totals and credit totals of
each account of ledger are recorded in respective sides of trial balance. This
method is not popular to prepare the trial balance because final account is
prepared with the help of ledger balances but this method provides the total
amount of debit and credit of each ledger. Normally accounting figures seem
large if total method is applied.
Trial Balance of..........................
As on..........................
Total Amount of Total Amount of
S.N. Particular LF
Dr. (Rs.) Cr. (Rs.)
2. Balance Method: According to this method, only the balances of the accounts
either debit or credit, are recorded against their respective accounts. Preparation
of trial balance under this method is popular and common now a days. The
difference of the two sides of every account is found out and short amount is
added to make the ledger balances equal, if there is difference in ledger. The
added amount is brought down in opposite side. The brought down amount is
taken to respective side of trial balance. The total of debit column and total of
credit column of trial balance should be equal to prove arithmetical accuracy.
Trial Balance of..........................
As on..........................
S.N. Particular LF Dr. (Rs.) Cr. (Rs.)
184 Office Practice and Accounting 9
3. Mixed Method: Under mixed method total amount and balance amount both
are used for the preparation of trial balance. This is the combination of total and
balance methods.
Trial Balance of..........................
As on..........................
Total Method Balance Method
S.N. Particular LF
Dr. (Rs.) Cr. (Rs.) Dr. (Rs.) Cr. (Rs.)
Considerations for preparation of trial balance:
The following points should be taken into consideration while preparing trial balance:-
1. The method of trial balance should be chosen carefully.
2. All the ledger balance should be up to date and correct.
3. Serial number should be written in first column of trial balance.
4. Account heads from respective sides of ledger should be in second column
and page number of ledger is written in third column for the quick location of
account heads.
5. Debit and credit amount should be written in fourth and fifth column
respectively.
6. Debit and credit side of trial balance must be equal; if it does not agree, there is
arithmetical error which should be rectified promptly.
7. It should be noted that agreement of trial balance does not assure the absolute
accuracy because only arithmetical errors are disclosed by trial balance.
8. All types of assets, expenses and losses should be recorded in debit side and
capital, incomes and liabilities are recorded in credit side.
Office Practice and Accounting 9 185
Accounts that figure in trial balance
Debit (Assets, Losses and Expenses)
Bank Motor vans Furniture Debtors
Machinery Opening Stock Cash Premises
Goodwill Patent Trademarks Investment
Prepaid expenses Accrued income Bills receivable Copy right
Purchases Carriage in and out Wages and salaries Advertising
Rent and rates Printing and stationery Discount allowed Bad debts written off
Depreciation Lighting and heating Other expenses Insurance
Commission paid Interest paid Electricity charges Telephone charges
Traveling expenses Administrative expenses Drawing of cash Drawing of goods
Sales return, etc.
Credit (Capital, Income and Liabilities)
Capital Creditors Loans from others Outstanding exp.
Unearned income Bank overdraft Bills payable Account payable
Unearned income General reserve Sales Provisions
Commission received Rent received Discount received Bad debts recovered
Dividend received Provision for bad debts Purchase return Interest received
Provision for Depreciation, etc.
Accounting Errors
Total of debit and credit side of trial balance must be equal. If it is not equal, there
is error somewhere in the records. The mistake can be committed while recording
financial transactions into journals and posting in ledger which is known as accounting
errors. Such error is crept in books of account either due to the lack of knowledge of
accounting principles or owing to oversight. Generally there are two types of errors
from the point of view of trial balance which are discussed below:
1. Errors disclosed by trial balance
2. Errors not disclosed by trial balance
1. Errors disclosed by trial balance
These are the errors which can be detected by preparing trial balance. Trial balance
disagrees if the following errors occur:
i. If amount is omitted to post into ledger: If any amount of one side is not posted
from journal in to ledger, two sides of the trial balance will not be equal.
186 Office Practice and Accounting 9
ii. If total of subsidiary books is wrong: If there is any error, totaling appears in
subsidiary books this causes the disagreement in trial balance.
iii. If wrong amount is posted in ledger: Amount is correctly recorded in journal
but if wrongly posted in ledger it is the reason for disagreement of trial balance.
For e.g., furniture purchased for Rs. 5000 correctly recorded in journal but
forgotten to record either in cash or furniture account, it mismatches trial
balance by Rs. 5000.
iv. If balancing is wrong in ledger: While using balance method, the balancing
figure is transferred to trial balance but if balancing is wrong there will be
disagreement in trial balance.
v. If same account is posted twice: Sometimes an error occurs if any entry is
posted twice in one account which causes the disagreement of trial balance. For
e.g., furniture purchased for Rs. 5000 correctly posted in furniture account but
posted twice in cash account.
vi. If total of ledger is wrong: Due to the wrong totaling of ledger, trial balance
fails to agree.
vii. If amount is posted in wrong side of trial balance: Amount from ledger should
be transferred to respective sides of trial balance but if amount is transferred to
wrong side, trial balance does not agree.
viii. If amount is not posted in trial balance: If the amount is omitted to record in
trial balance, it does not agree.
ix. If wrong calculation is done in trial balance: Wrong totaling in trial balance is
another cause for disagreement of trial balance.
2. Errors not disclosed by trial balance
Although disagreement of trial balance always signals the presence of error, its
agreement does not assure a conclusive proof as to the absolute accuracy of the books.
There are some kinds of errors which do not affect the agreement of trial balance
known as errors not disclosed by trial balance. Following are the examples of such
errors:
i. Errors of omission: Errors of omission refer to not recording in the books of
account, either wholly or partially. When a transactions altogether omitted
from the record, the error may be difficult to detect because it will not affect
in the total of trial balance. e.g goods of Rs. 700 purchased but not recorded in
the book is called total omission. Furniture of Rs. 12,000 purchased recorded
in journal book but has not been posted in both of ledger account is partial
omission.
ii. Errors of commission: When incorrect entries are made in the books of original
entry or ledger account, either wholly or partially, the errors are known as errors
of commission. This error includes wrong entries, wrong posting of numerical
figures. e.g. goods of Rs. 700 purchased recorded as Rs. 7000.
Office Practice and Accounting 9 187
iii. Compensating error: When one error is compensated or overlapped by another
error of same amount such error is known as compensating error. e.g. payment
of salary Rs. 6000 is recorded in debit correctly but as Rs. 600 in credit and
payment of commission Rs. 600 recorded again correctly in debit but recorded
Rs. 6000 in credit. Here in first case, credit side less recorded by Rs. 5400
wrongly but next time again wrongly, cash is over recorded by Rs. 5400 which
compensates the previous error.
iv. Errors of duplication: An error of duplication occurs when the same transaction
has been recorded twice in the books of original entry and also posted twice in
the ledger. e.g. Purchase worth Rs. 7000 may be recorded twice in the accounts.
v. Errors of principle: Errors of principle occur due to the violation of fundamental
principles of accounting. This may be due to lack of correct knowledge of
the accounting principle on the part of the recording clerks. E.g. salary paid
recorded in wages, purchase of assets recorded in purchase book, etc.
Illustrations
1. The following ledger balances have been extracted from the books of
Pathivara Company as on 31st Chaitra 2072. Prepare trial balance.
Bank loan 2,50,000
Creditors 50,000
Cash in hand 40,000
Debtors 60,000
Share capital 3,00,000
Revenue 8,00,000
Fixed assets 7,00,000
Administrative expenses 2,00,000
Salaries 2,50,000
Selling expenses 1,50,000
188 Office Practice and Accounting 9
Trial Balance
Pathivara Company
As on 31-12-2072
Particulars Debit (Rs.) Credit (Rs.)
Share capital – 3,00,000
Revenue – 8,00,000
Bank loan – 2,50,000
Creditors - 50,000
Cash in hand 40,000 –
Debtors 60,000 –
Fixed assets 7,00,000 –
Administrative expenses 2,00,000 –
Salaries 2,50,000 –
Selling expenses 1,50,000 –
Total 14,00,000 14,00,000
2. The ledger balance of X Co. Ltd. as on 31st Chaitra is given below:
Share capital 2,50,000
Sales 4,00,000
Purchases 2,95,000
Wages 20,000
Carriage 5,000
Salaries 30,000
Fixed assets 3,00,000
Creditors 50,000
Debtors 40,000
Insurance 10,000
Required: Trial Balance
Office Practice and Accounting 9 189
Trial Balance
X Company Limited
As on 31 Chaitra
Particulars Debit (Rs.) Credit (Rs.)
Share capital – 2,50,000
Sales – 4,00,000
Purchases 2,95,000 –
Wages 20,000 –
Carriage 5,000 –
Salaries 30,000 –
Fixed assets 3,00,000 –
Creditors – 50,000
Debtors 40,000 –
Insurance 10,000 –
Total 7,00,000 7,00,000
3. The following is the ledger balance of Mr. Dipendra, as on 31st
December 2016, You are required to prepare Trial Balance.
Plant and machinery 1,20,000
Furniture 30,000
Debtors 1,00,000
Opening stock 70,000
Capital 1,60,000
Loan 40,000
Bills payable 44,000
Purchase 2,40,000
Cash in hand 2,000
Bills receivable 40,000
Sundry creditors 48,000
Provision for bad debt 2,400
Rent and tax 20,000
Wages 32,000
Salaries 46,000
Sales 4,05,600
190 Office Practice and Accounting 9
Trial Balance
Dipendra
As on 31-12-2016
Particulars Debit (Rs.) Credit (Rs.)
Plant and machinery 1,20,000
Furniture 30,000
Debtors 1,00,000
Opening stock 70,000
Purchase 2,40,000
Cash in hand 2,000
Bills receivable 40,000
Rent and tax 20,000
Wages 32,000
Salaries 46,000
Capital 1,60,000
Loan 40,000
Bills payable 44,000
Sundry creditors 48,000
Provision for bad debt 2,400
Sales 4,05,600
Total 7,00,000 7,00,000
4. You are given the following information of XYZ Company Ltd as on
31st December 2015.
Office expenses 74,250
Machinery 1,35,000
Dividend received 15,000
Stock 1,87,500
Salary 78,000
Interest income 9,000
Bad debt recovered 6,000
Bank loan 4,50,000
Bad debt provision 15,000
Debtors 4,50,000
Creditors 3,00,000
Office Practice and Accounting 9 191
Buildings 6,75,000
Bank 63,000
Cash 4,500
Carriage in 23,700
Purchase 7,80,000
Telephone 21,300
Stationery 9,000
Advance income 1,50,000
Drawing 15,000
Insurance 26,250
Wages 60,000
Sales 10,80,000
Advertisement 37,500
Investment 1,50,000
Capital 8,25,000
Bill Receivable 60,000
Trial Balance
XYZ Company Limited
As on 31-12-2015
Particulars Debit (Rs.) Credit (Rs.)
Office expenses 74,250 –
Machinery 1,35,000 –
Dividend received – 15,000
Stock 1,87,500 –
Salary 78,000 –
Interest income – 9,000
Bad debt recovered – 6,000
Bank loan – 4,50,000
Bad debt provision – 15,000
Debtors 4,50,000 –
Creditors – 3,00,000
Buildings 6,75,000 –
Bank 63,000 –
Cash 4,500 –
Carriage in 23,700 –
Purchase 7,80,000 –
Telephone 21,300 –
Stationery 9,000 –
Advance income – 1,50,000
Drawing 15,000 –
192 Office Practice and Accounting 9
Insurance 26,250 –
Wages 60,000 –
Sales – 10,80,000
Advertisement 37,500 –
Investment 1,50,000 –
Capital – 8,25,000
Bill Receivable 60,000 –
Total 28,50,000 28,50,000
EXERCISE
1. What is trial balance? Explain.
2. Explain the objectives of trial balance.
3. Briefly explain the errors disclosed by trial balance.
4. What are the errors not disclosed by trial balance?
Practical Problems
1. From the following information, prepare trial balance for the year 2015.
Particulars Amount Particulars Amount
Bank 83500 Purchase 140,000
Capital 1,60,000 Advertisement 15,000
Vehicle 50,000 Rent 30,250
Equipment 30,000 Sales 64,750
Creditors 130,000 Drawing 6,000
Ans: Total Rs. 3,54,750
Office Practice and Accounting 9 193
2. You are given the following information.
Bank 20,25,000
Capital 20,00,000
Purchase 6,00,000
Furniture 1,00,000
Rent 50,000
Machinery 1,00,000
Creditors 1,00,000
Debtors 2,00,000
Sales 10,00,000
Telephone bill 5,000
Salary 20,000
Required: Trial balance of Pathivara Trading House at the end of 2016.
Ans: T.B. Total Rs 31,00,000
3. Prepare trial balance from the information given below:
Capital, Rs. 1,35,800, Drawing, Rs 10,000, opening stock Rs 2,00,000; Cash Rs
30,600, Purchase Rs. 1,00,000 sales Rs 1,60,000, Trade expenses Rs, 1,000, Carriage
out Rs. 1,000, Advertisement Rs 1,600, Discount Rs 600, Interest received Rs
1000, Copyright Rs 10,000, Loan Rs, 60,000, Carriage Rs. 2000.
Ans: Total Rs. 3,56,800
4. Prepare a trial balance of ABC Company for the year ended 31st Ashad
from the following particulars.
Capital 5,20,000
Purchase 4,00,000
Salary & wage 60,000
Building 5,10,000
Sales 4,80,000
Goodwill 1,00,000
Interest 20,000
Rent earned 90,000
Ans: Rs. 10,90,000
194 Office Practice and Accounting 9
5. Prepare a Trial balance as on 31st December 2010 from the following
particulars.
Particulars Amount (Rs) Particulars Amount (Rs)
Capital 5,00,000 Outstanding Exp. 10,000
Purchase 3,60,000 Salary 1,80,000
Wage 1,40,000 Bad debt 30,000
Machinery 3,10,000 Sales Revenue 7,50,000
Creditors 25,000 Cash and bank 2,65,000
Ans: Rs. 12,85,000
6. Prepare trial balance of Peace Land Academy for the year 2013 from the
following particulars:
Capital 4,25,000
Drawing 60,000
Purchases 6,60,000
Carriage outward 75,000
Opening stock 3,25,000
Bills payables 75,000
Sales 6,00,000
Discount Received 20,000
Ans: Rs. 11,20,000
7. Prepare a Trial Balance of Kathmandu Stores for the year 2070/071 from
the following particulars.
Purchases 4,50,000
Loan from bank 3,35,000
Carriage inwards 40,000
Machinery 3,50,000
Bills receivables 30,000
Depreciation 20,000
Bad debt recovered 20,000
Sales 5,35,000
Ans: Rs. 8,90,000
8. Prepare trial balance of Gajurmukhi Limited as at 2072 Ashar 31 on the
basis of following transactions.
Opening stock 27,000
Depreciation 35,000
Purchase 2,46,000
Office Practice and Accounting 9 195
Sales 3,32,000
Purchase return 15,000
Insurance 40,000
Bank loan 23,000
Wages 22,000
Ans: Rs. 3,70,000
9. Prepare a Trial Balance of Medini Traders for the fiscal your 2071/2072
based on the following particulars.
Particulars Amount Particulars Amount
Capital Rs.3,50,000 Opening stock Rs. 2,00,000
Purchases Rs. 2,00,000 Bank Overdraft Rs. 55,000
Insurance Rs.20,000 Bills payable Rs. 50,000
Sales Rs.2,50,000 Furniture Rs. 2,85,000
Ans: Rs. 7,05,000
10. Prepare Trial balance of Binay Kagaj Udhyog, Pokhara as on 31st
Chaitra 2071 from the following particulars:
Capital Rs. 1,00,000
Customer Rs. 50,000
Due wages Rs. 30,000
Furniture Rs. 90,000
Bad debts recovered Rs. 10,000
Goodwill Rs, 20,000
Rent Rs. 20,000
A/C payable Rs. 40,000
Ans: Rs. 1,80,000
11. Prepare a Trail Balance of ABC Company on last of Chaitra 2069 from
the following transactions:
Particulars Amount Rs. Particulars Amount Rs.
Capital 35,000 Purchase 50,000
Sales 1,65,000 Wages 20,000
Salary 15,000 Machine 25,000
Land & Building 70,000 Debtors 20,000
Ans: Rs. 2,00,000
196 Office Practice and Accounting 9
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