Answered step by step
Verified Expert Solution
Question
1 Approved Answer
685 manner as a ledger account. To verify the accuracy of the entries made and to confirm the authenticity of cash balance, it should be
685 manner as a ledger account. To verify the accuracy of the entries made and to confirm the authenticity of cash balance, it should be balanced daily. The balance as per Cash Book must tally with the actual cash in hand. In the Cash Book, the total of amount column of the debit side always exceeds the total of credit side. As such, the Cash Book always shows a debit balance, since we cannot pay more than we have with us. At the end of the period, the balance of the Cash Book is placed on the credit side by writing "By Balance c/d" and then the totals are shown on both side in one straight line. The total of each side should be the same. 19 Illustration 1. Enter the following transactions in the Cash Book of Mr. Nikhil. 2006 Rs. March 1 Mr. Nikhil commenced business with Cash 6,500 March 3 Bought goods for cash March 4 Paid to Mohan March 6 Deposited in the bank 4,000 March 6 Purchased office furniture on cash 465 March 9 Sold goods for cash 3,000 March 12 Paid wages in cash 120 March 13 Paid for stationary March 15 Sold goods for cash 2,500 March 17 Paid for miscellaneous expenses 45 March 19 Received cash from Tarlok March 21 Withdrew for domestic use 250 March 22 Paid salary 400 March 25 Paid rent March 28 Paid electricity bill March 29 Paid for advertising 40 March 31 Paid into bank 2,500 95 40 485 90 35
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started