Question

Record the following transactions in the three column cash book of John.

2017 Dec.		₹
1	Cash balance brought forward	12,600
1	Bank overdraft brought forward	36,000
1	Advance paid to petty cashier by cheque	3,000
5	Goods sold for cash	12,000
7	Dividend on shares collected by the banker	1,000
13	Cash paid into Bank	10,000
14	Interest charged by the bank for bank overdraft	1,500
18	Cheque issued to Siddique	8,000
	Discount received from him	200
24	Insurance claim received by cheque and deposited into bank	17,000
28	Cash received from Baskar	15,000
	Discount allowed to him	150
31	Deposited into Bank all cash excess of ₹ 18,600

Answer 1

In the books of John
Three – column cash book

Dr.											Cr.
Date	Receipts	L.F.	Amount ₹			Date	Payments	L.F.	Amount ₹
			Discount Allowed	Cash	Bank				Discount Received	Cash	Bank
2017 Dec.						2017 Dec.
1	To Balance b/d			12,600		1	By Balance c/d				36,000
5	To Sales A/c			12,000		1	By Petty cash A/c				3,000
7	To Dividend A/c				1,000	13	By Bank A/c	C		10,000
13	To Cash A/c	C			10,000	14	By Interest A/c				1,500
24	To Insurance claim A/c				17,000	18	By Siddique A/c		200		8,000
28	To Basker A/c		150	15,000		31	By Bank A/c	C		11,000
31	To Cash A/c	C			11,000	31	By Balance c/d			18,600
31	To Balance c/d				9,500
			150	39,600	48,500				200	39,600	48,500
2018 Jan. 1	To Balance b/d			18,600		2018 Jan. 1	By Balance b/d			-	9,500