{"id":33375,"date":"2022-11-26T18:28:05","date_gmt":"2022-11-26T12:58:05","guid":{"rendered":"https:\/\/apboardsolutions.com\/?p=33375"},"modified":"2023-03-30T14:53:37","modified_gmt":"2023-03-30T09:23:37","slug":"ap-inter-1st-year-accountancy-important-questions-chapter-8","status":"publish","type":"post","link":"https:\/\/apboardsolutions.com\/ap-inter-1st-year-accountancy-important-questions-chapter-8\/","title":{"rendered":"AP Inter 1st Year Accountancy Important Questions Chapter 8 Cash Book"},"content":{"rendered":"

Students must practice these AP Inter 1st Year Accountancy\u00a0Important Questions<\/a> 8th Lesson Cash Book to boost their exam preparation.<\/p>\n

AP Inter 1st Year Accountancy Important Questions 8th Lesson Cash Book<\/h2>\n

Long Answer Questions<\/span><\/p>\n

Question 1.
\nDescribe the meaning and importance of cash book.
\nAnswer:
\nAmong the entire subsidiary books cash book is one of the important books. In this book we record cash receipts and cash payments. The main objective of cash book is to know the balance of cash at any given time. The person who maintains cash book is known as cashier. Business transactions are mainly two kinds.<\/p>\n

    \n
  1. Cash Transactions<\/li>\n
  2. Credit Transactions<\/li>\n<\/ol>\n

    All cash transactions are two types:<\/p>\n

      \n
    1. Cash receipts<\/li>\n
    2. Cash payments<\/li>\n<\/ol>\n

      Cash receipts should be recorded on debit side and cash payments are on the credit side. Generally cash book shows debit balance, because a business unit cannot pay more than its receipts.<\/p>\n

      \"AP<\/p>\n

      Question 2.
      \nBriefly explain the different types of cash books.
      \nAnswer:
      \nThe form of the cash book depends on the need, nature and scope of activities of a business firm.
      \nThey are as follows :<\/p>\n

        \n
      1. Simple cash book<\/li>\n
      2. Double column cash book
        \ni) With cash and discount columns
        \nii) With bank and discount columns<\/li>\n
      3. Triple column cash book<\/li>\n
      4. Analytical petty cash book<\/li>\n<\/ol>\n

        1) Simple Cash Book: The simple cash book is maintained by small business concern. Only cash transactions are recorded in this book. Cash receipts are to be recorded on the debit side and cash payments are on credit side. After entering all the transactions, the balance is ascertained like other accounts.<\/p>\n

        2) Double Column Cash Book:
        \na) Cash Book with Cash and Discount Columns : The transactions pertaining to cash and cash discounts are also recorded. To record the discount involved in any transactions one additional column on both sides of the cash book is provided. Discount column on the debit side should be named as discount allowed, and on the credit side discount received. They should not be balanced.<\/p>\n

        b) Cash Book with Bank and Discount Columns : Modern business organisations carry their transactions in the form of cheques through banks. The receipts and payments of the business are made through cheques. They maintain bank column in the cash book. The traders deposit money and cheques into bank account and make payments by cheques. The traders’ deposit through bank is having advantages of safety and convenience.<\/p>\n

        3) Triple Column Cash Book: This book also known as cash book with cash discount and bank columns. It contains three columns on both the sides. Three column cash book is used by big trading organisations, to record large number of cash and bank transactions of different nature.<\/p>\n

        4) Analytical Petty Cash Book: In large scale business organisation cash is paid and received through banks, but every day the organisation has to pay various small payments. It is not possible to pay small payments through cheques and enter in the cash book. Hence all petty payments of the business are recorded in a separate cash book which is called a Petty Cash Book,<\/p>\n

        Question 3.
        \nWrite the importance of Triple column cash book and draw its pro forma.
        \nAnswer:
        \nTriple column cash book contains three columns on both sides (debit and credit) in addition to date, particulars and L.F columns. Three column cash book is very useful to the big trading organisations for the following reasons.<\/p>\n

          \n
        1. It helps to record cash Receipts and also Receipts through cheques.<\/li>\n
        2. It is useful to record Cash Payments and also Payments by Cheques.<\/li>\n
        3. It helps to record large number of cash and bank transactions of different nature.<\/li>\n
        4. It is useful to record Contra Entries.<\/li>\n<\/ol>\n

          \"AP<\/p>\n

          Question 4.
          \nExplain the important points to be followed in the preparation of three column cash book.
          \nAnswer:
          \nThe following points are to be noted carefully while preparing three column cash book.
          \n1) Opening cash and bank balances are recorded on the debit side of the cash and bank column as “To Balance b\/d” in the particulars column.<\/p>\n

          2) If the overdraft is given as opening bank balance, it should be recorded on the credit side of Bank column.<\/p>\n

          3) All cash receipts should be recorded on the debit side cash column and cash payments are recorded in the cash column on the credit side.<\/p>\n

          4) If any cheque is received from customers and if it was not deposited in the bank on the same day, it should be debited to cash column.<\/p>\n

          5) If cheque is received and sent to bank on the same day, it should be debited to bank column.<\/p>\n

          6) Any payment made through cheque, should be credited to bank column on the credit side.<\/p>\n

          7) If discount amounts are involved either in cash or in bank transactions, discount allowed should be recorded on the debit side and discount received should be recorded on the credit side in the discount column.<\/p>\n

          8) If the cheques sent to bank for collection are dishonoured, it should be recorded in the bank column on debit side.<\/p>\n

          9) The transaction which is passed on both sides of the cash book is called ‘Contra Entry’. While opening bank a\/c, cash deposited in bank, cash withdrawn from bank for personal use and cheque received on one day but deposited on another day. Contra entries will appear on both sides. It is denoted by “C”.<\/p>\n

          \"AP<\/p>\n

          Short Answer Questions<\/span><\/p>\n

          Question 1.
          \nExplain the advantages of cash book.
          \nAnswer:
          \nAdvantages of Cash Book:<\/p>\n

            \n
          1. It helps to know the amount of cash received and the amount of cash paid by the Business Unit.<\/li>\n
          2. It gives the Cash and Bank balances of a business unit at any given period.<\/li>\n
          3. Mistakes or Fraud can be detected by verifying the closing balance of cash book with the actual amount of cash in hand.<\/li>\n
          4. As cash book acts as Cash A\/c, preparation of a separate Cash A\/c (ledger) is not required.<\/li>\n<\/ol>\n

            Question 2.
            \nGive the characteristics of cash book.
            \nAnswer:
            \nCharacteristics of Cash Book:<\/p>\n

              \n
            1. Cash book is a Subsidiary Book.<\/li>\n
            2. It records only Cash Transactions.<\/li>\n
            3. Cash book serves as Cash Account.<\/li>\n
            4. It records cash receipts on the debit side and cash payments on the credit side.<\/li>\n
            5. Cash book will show Debit Balance only.<\/li>\n<\/ol>\n

              Very Short Answer Questions<\/span><\/p>\n

              Question 1.
              \nCash Discount [Mar ’17 (TS)]
              \nAnswer:
              \nIt is given for prompt and early payment. If a debtor pays the amount to the creditor on or before the due date, he may receive discount in the form of cash. It is known as cash discount. It is discount received for the debtor and discount allowed for the creditor. The discount column is maintained on both sides of the cash book.<\/p>\n

              Question 2.
              \nDiscount Allowed
              \nAnswer:
              \nDiscount given or allowed by the creditor is known as discount allowed. It is a loss for the creditor. This was allowed to the debtor for prompt payment.<\/p>\n

              Question 3.
              \nDiscount Received
              \nAnswer:
              \nIf a debtor pays the amount on or before the due date, he may receive discount in the form of cash. It is gain for the debtor. It is called discount received.<\/p>\n

              Question 4.
              \nContra entry [May. 2019; May \u201917-T.S.; Mar. 2018]
              \nAnswer:
              \nThe transaction which is recorded on both sides of Triple column cash book i.e. Cash and Bank on the opposite sides is called contra entry. Contra means opposite side. It should be denoted by “C” in the L.F column on both sides of Triple Column Cash Book.<\/p>\n

              \"AP<\/p>\n

              Question 5.
              \nImprest System
              \nAnswer:
              \nIn this system petty cash payments for a period is estimated and that amount is given to the petty cashier as advance. The cashier makes payments from this amount and records them in petty cash book. At the end of a particular period the petty cashier submits petty cash book to the Head Cashier. The Head Cashier scrutinizes the petty payments and issues a fresh cheque equal to the amount of petty expenses paid. This system of book keeping is called Imprest System.<\/p>\n

              Problems<\/span><\/p>\n

              Question 2.
              \nEnter the following transactions in single column cash book of Farma traders
              \n2013 \u2014 Rs.
              \nDec. 1 \u2014 Cash in hand \u2014 11,500
              \n2 \u2014 Sold goods \u2014 2,600
              \n5 \u2014 Purchased furniture \u2014 3,500
              \n8 \u2014 Purchased goods for Cash \u2014 2,000
              \n10 \u2014 Stationery Purchased \u2014 700
              \n12 \u2014 PaId to Vasu \u2014 900
              \n15 \u2014 Purchased goods from Sekhar \u2014 650
              \n18 \u2014 Paid telephone bill \u2014 500
              \n20 \u2014 Sold goods to Han \u2014 800
              \n25 \u2014 Paid Interest \u2014 250
              \n29 \u2014 Paid cash to Sekhar \u2014 650
              \n30 \u2014 Received Commission \u2014 400
              \nAnswer:
              \n\"AP<\/p>\n

              Question 3.
              \nPrepare Simple Cash Book as on 31.3.2014.
              \n2014 \u2014 Rs.
              \nMarch 1 \u2014 Started Business with \u2014 10,000
              \n4 \u2014 Purchases \u2014 2,000
              \n6 \u2014 Deposited cash into bank \u2014 3,000
              \n8 \u2014 Sales \u2014 1,200
              \n10 \u2014 Purchased goods from Ramesh on Cash \u2014 500
              \n14 \u2014 Paid Managers Salary \u2014 800
              \n16 \u2014 Paid Office Expenses \u2014 300
              \n17 \u2014 Purchased Stationary \u2014 350
              \n21 \u2014 Sold old Machine \u2014 900
              \n23 \u2014 Drawings \u2014 700
              \n25 \u2014 Paid Rent \u2014 1,500
              \n29 \u2014 Received Interest \u2014 550
              \n31 \u2014 Paid travelling expenses \u2014 825
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 4.
              \nRecord following transactions in Two Column Cash book as on 31.1.2014:
              \n2014 \u2014 Rs.
              \nJan 1 \u2014 Balance of cash \u2014 5,500
              \n2 \u2014 Paid to Nagarjuna \u2014 1250
              \nDiscount received \u2014 250
              \n4 \u2014 Cash Sales \u2014 1000
              \n6 \u2014 Cash Purchases \u2014 900
              \n10 \u2014 Received Cash from Raju \u2014 850
              \nDiscount allowed \u2014 150
              \n16 \u2014 Paid Cash to Mahesh \u2014 650
              \nDiscount received \u2014 150
              \n18 \u2014 Paid Advertisements expenses \u2014 600
              \n20 \u2014 Received cash from Praveen \u2014 800
              \nDiscount allowed \u2014 200
              \n24 \u2014 Paid for Repairs \u2014 400
              \n27 \u2014 Sold old newspapers \u2014 200
              \n29 \u2014 Received Cash from Ram \u2014 325
              \nDiscount allowed \u2014 75
              \n31 \u2014 Paid Salaries \u2014 750
              \nAnswer:
              \n\"AP<\/p>\n

              Question 5.
              \nPrepare Double Column Cash Book with Cash and Discount Columhs:
              \n2014 \u2014 Rs.
              \nApril 1 \u2014 Cash in hand \u2014 9500
              \n3 \u2014 Deposited cash into bank \u2014 3000
              \n5 \u2014 Drawings \u2014 1500
              \n10 \u2014 Withdrawn Cash from bank \u2014 1400
              \n12 \u2014 Paid Cash to Dasarath \u2014 350
              \nDiscount received \u2014 50
              \n13 \u2014 Received Cash from Arvind \u2014 475
              \nDiscount allowed \u2014 125
              \n16 \u2014 Sold old furniture \u2014 300
              \n20 \u2014 Cash Received from Gopal \u2014 1500
              \nDiscount allowed \u2014 100
              \n24 \u2014 Paid office expenses \u2014 600
              \n26 \u2014 Paid for stationery \u2014 450
              \n28 \u2014 Rent paid \u2014 950
              \n29 \u2014 Paid cash to Krishna \u2014 250
              \nDiscount received \u2014 50
              \n30 \u2014 Paid Salary \u2014 600
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 6.
              \nPrepare Double Column Cash Book from the following.:
              \n2014 \u2014 Rs.
              \nFeb 1 \u2014 Cash in hand \u2014 13000
              \n4 \u2014 Paid to Charan \u2014 1800
              \nDiscount received \u2014 200
              \n5 \u2014 Deposited into Bank \u2014 4000
              \n8 \u2014 Drawings \u2014 400
              \n10 \u2014 Paid cash to Chandu \u2014 500
              \nDiscount received \u2014 100
              \n13 \u2014 Cash Sales \u2014 450
              \n15 \u2014 Received cash from Reddy Traders \u2014 700
              \nDiscount allowed \u2014 200
              \n17 \u2014 Cash Purchases \u2014 550
              \n20 \u2014 Goods sold to Sripathi \u2014 1000
              \n23 \u2014 Wages paid \u2014 250
              \n25 \u2014 Received cash from Bhasha \u2014 450
              \nAllowed him discount \u2014 50
              \n27 \u2014 Paid cash to Madhu \u2014 370
              \nDiscount received \u2014 30
              \n28 \u2014 Paid for carriage \u2014 200
              \nAnswer:
              \n\"AP
              \nHint: Transaction dated 20th is a credit Transaction.<\/p>\n

              Question 7.
              \nPrepare Two column cash book with Bank and Discount columns from the following:
              \n2013 \u2014 Rs.
              \nNov. 1 \u2014 Opening Balance \u2014 6500
              \n3 \u2014 Received cheque from Raj \u2014 950
              \nDiscount allowed \u2014 50
              \n6 \u2014 Sales \u2014 1500
              \n8 \u2014 Furniture purchased and paid by cheque \u2014 1000
              \n10 \u2014 Withdrawn from bank for personal use \u2014 400
              \n13 \u2014 Purchases \u2014 700
              \n17 \u2014 Paid to Vamsi by cheque \u2014 450
              \nIn settlement of his account \u2014 500
              \n21 \u2014 Advertisement expenses \u2014 800
              \n23 \u2014 Sold goods to Ramana and received Cheque \u2014 1200
              \n27 \u2014 Paid rent to landlord \u2014 600
              \n30 \u2014 Salaries paid \u2014 700
              \nAnswer:
              \n\"AP<\/p>\n

              Question 8.
              \nPrepare Three Column Cash Book.
              \n2012 \u2014 Rs.
              \nDec. 1 \u2014 Cash in hand \u2014 12000
              \nCash at bank \u2014 18000
              \n3 \u2014 Cash Sales \u2014 6000
              \n8 \u2014 Received Cash from Madhu \u2014 5800
              \nDiscount allowed \u2014 200
              \n14 \u2014 Issued Cheque to Hari \u2014 9600
              \nDiscount received \u2014 400
              \n20 \u2014 Paid Commission \u2014 500
              \n23 \u2014 A Cheque Received from Govind \u2014 3500
              \nallowed him discount \u2014 500
              \n25 \u2014 Govind cheque deposited into Bank
              \n26 \u2014 Bought furniture \u2014 2000
              \n28 \u2014 Withdrew from bank for office use \u2014 5000
              \n30 \u2014 Salaries paid by Cheque \u2014 1000
              \n(Hint: Transactions dated 25th and 28th are Contra entries.)
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 9.
              \nPrepare three column cash book from the following particulars:
              \n2013 \u2014 Rs.
              \nOct. 1 \u2014 Cash in Hand \u2014 3500
              \nBalance at Bank \u2014 2500
              \n3 \u2014 Purchases \u2014 1100
              \n5 \u2014 Sold goods for Cash \u2014 900
              \n7 \u2014 Paid cash to Raju \u2014 525
              \nDiscount received \u2014 75
              \n9 \u2014 Deposited cash into Bank \u2014 250
              \n11 \u2014 Received cash from Srinivas \u2014 350
              \nDiscount received \u2014 50
              \n13 \u2014 Received cheque from Hari and \u2014 750
              \nDiscount received \u2014 75
              \nHari cheque deposited into bank
              \n15 \u2014 Paid to Ramesh by Cheque \u2014 375
              \nDiscount received \u2014 75
              \n18 \u2014 Paid office expenses \u2014 250
              \n20 \u2014 Drawings \u2014 300
              \n25 \u2014 Withdrawn cash from bank for office use \u2014 600
              \n28 \u2014 Paid Salaries through cheque \u2014 700
              \n29 \u2014 Received Interest \u2014 675
              \n31 \u2014 Paid Rent \u2014 800
              \nAnswer:
              \n\"AP<\/p>\n

              Question 10.
              \nPrepare Triple Column Cash Book from the following:
              \n2014 \u2014 Rs.
              \nJan 1 \u2014 Cash in Hand \u2014 6900
              \nCash at Bank \u2014 12000
              \n3 \u2014 Issued cheque to Giri \u2014 550
              \nDiscount received \u2014 50
              \n5 \u2014 Cash Sales \u2014 1000
              \n8 \u2014 Paid for Stationery \u2014 200
              \n10 \u2014 Received cheque from Kalyan \u2014 425
              \nDiscount received \u2014 75
              \n13 \u2014 Sold old furniture \u2014 400
              \n15 \u2014 Purchased goods from Manasa \u2014 700
              \n17 \u2014 Deposited Kalyan cheque into Bank
              \n20 \u2014 Paid to Akbar by cheque \u2014 350
              \nDiscount received \u2014 50
              \n23 \u2014 Taken cash from bank for office use \u2014 600
              \n25 \u2014 Received cash from Manasa \u2014 650
              \nDiscount received \u2014 50
              \n27 \u2014 Received commission \u2014 800
              \n29 \u2014 Received cheque from Bharath \u2014 700
              \nDiscount received \u2014 100
              \nBharath cheque sent to bank
              \n31 \u2014 Paid rent 500
              \nAnswer:
              \n\"AP<\/p>\n

              Question 11.
              \nRecord the following transactions in Cash, Bank, and Discount Columns Cash Book
              \n2013 \u2014 Rs.
              \nNov 1 \u2014 Cash balance \u2014 8000
              \nBank Overdraft \u2014 1000
              \n3 \u2014 Deposited cash into bank \u2014 500
              \n6 \u2014 Cheque issued to Rohan \u2014 450
              \nDiscount received \u2014 50
              \n8 \u2014 Received cheque from Sohan \u2014 1350
              \nAnd cheque is deposited into bank
              \n12 \u2014 Cash received from Anil \u2014 900
              \nin full settlement of his account \u2014 1000
              \n14 \u2014 Withdrawn cash from bank \u2014 900
              \n15 \u2014 Paid interest \u2014 400
              \n17 \u2014 Commission received \u2014 500
              \n19 \u2014 Paid cash into Bank \u2014 600
              \n22 \u2014 Cash received from Sainath \u2014 450
              \nDiscount received \u2014 50
              \n26 \u2014 Purchased stationery and paid by cheque \u2014 400
              \n28 \u2014 Sold old machinery \u2014 800
              \n30 \u2014 Salaries paid \u2014 300
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 12.
              \nFrom the following particulars, prepare three column cash book:
              \n2013 \u2014 Rs.
              \nOct 1 \u2014 Cash in Hand \u2014 4700
              \nCash at Bank \u2014 1300
              \n4 \u2014 Paid to Kowsik \u2014 650
              \nDiscount received \u2014 150
              \n6 \u2014 Cash sales \u2014 1000
              \n8 \u2014 Paid cash to Mukesh \u2014 350
              \nDiscount received \u2014 50
              \n10 \u2014 Received cheque from Prabhu \u2014 1450
              \nDiscount received \u2014 150
              \n12 \u2014 Postal charges \u2014 200
              \n14 \u2014 Prabhu cheque deposited into Bank
              \n16 \u2014 Received rent \u2014 400
              \n18 \u2014 Drew from bank for office use \u2014 500
              \n20 \u2014 Paid general expenses \u2014 150
              \n24 \u2014 Received cheque from Naresh \u2014 2300
              \nDiscount received \u2014 200
              \nNaresh cheque sent to bank
              \n29 \u2014 Paid into bank \u2014 1000
              \n31 \u2014 Salaries paid by cheque \u2014 400
              \nAnswer:
              \n\"AP<\/p>\n

              Question 13.
              \nPrepare triple column cash book from the following information: [Mar. ’20 – A.P; May ’17 – T.S.]
              \n2014 (2019) \u2014 Rs.
              \nJan. 1 \u2014 Cash Balance \u2014 10500
              \nBank Balance \u2014 12000
              \n4 \u2014 Cash sales \u2014 3000
              \n6 \u2014 Purchased goods from Ashok and paid by cheque \u2014 2500
              \n9 \u2014 Paid into Bank \u2014 2000
              \n15 \u2014 Paid to Phani \u2014 1460
              \nDiscount received \u2014 40
              \n21 \u2014 Received from Syam a cheque \u2014 980
              \nDiscount received \u2014 20
              \n(Syam cheque sent to bank)
              \n25 \u2014 Cash withdrawn from bank for office use \u2014 1000
              \n30 \u2014 Paid rent by cheque \u2014 1600
              \n31 \u2014 Furniture bought by cheque \u2014 500
              \nAnswer:
              \n\"AP<\/p>\n

              Question 14.
              \nPrepare triple column cash book from the following particulars: ]
              \n2014 \u2014 Rs.
              \nMarch 1 \u2014 Cash in Hand \u2014 11000
              \nCash at Bank * \u2014 20000
              \n5 \u2014 Cash Sales \u2014 1900
              \n7 \u2014 Issued cheque to Big Bazar \u2014 1800
              \nDiscount received \u2014 200
              \n8 \u2014 Received cash from Sai Traders \u2014 1500
              \nCheque \u2014 350
              \nDiscount received \u2014 150
              \n(Cheque deposited into Bank)
              \n14 \u2014 Cash withdrawn from Bank for office use \u2014 550
              \n18 \u2014 Salaries paid by cheque * \u2014 400
              \n22 \u2014 Cash purchases \u2014 600
              \n29 \u2014 Paid into bank \u2014 800
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 15.
              \nPrepare Three Column Cash Book from the following: [Mar. 2018 -A.P.]
              \n2014 \u2014 Rs.
              \n1 \u2014 Cash in Hand \u2014 12000
              \nBank Balance (Credit) \u2014 10000
              \n5 \u2014 Paid to Hari by cheque \u2014 425
              \nDiscount received \u2014 75
              \n9 \u2014 Sales \u2014 1600
              \n15 \u2014 Deposited Cash into Bank \u2014 1300
              \n18 \u2014 Received cheque from Kalyan \u2014 1275
              \nDiscount received \u2014 25
              \nKalayan cheque deposited into bank
              \n20 \u2014 Taken cash from bank for personal use \u2014 3000
              \n25 \u2014 Paid salaries \u2014 1200
              \n27 \u2014 Telephone bill paid by cheque \u2014 1250
              \n28 \u2014 Drawn from bank for office use \u2014 2000
              \nAnswer:
              \n\"AP<\/p>\n

              Question 16.
              \nPrepare Three Column Cash Book from the following:
              \n2014 \u2014 Rs.
              \nMarch 1 \u2014 Cash balance \u2014 4200
              \nBank balance \u2014 1500
              \n7 \u2014 Deposited cash into Bank \u2014 1000
              \n10 \u2014 Paid to Anil \u2014 350
              \nDiscount received \u2014 50
              \n15 \u2014 Sales through Credit Card \u2014 250
              \n20 \u2014 Received Cheque from Srinivas \u2014 850
              \nDiscount received \u2014 150
              \nSrinivas cheque sent to bank
              \n25 \u2014 Cash withdrawn from Bank \u2014 200
              \n30 \u2014 Sales through Debit Card \u2014 500
              \n31 \u2014 Paid salaries \u2014 300
              \nAnswer:
              \n\"AP<\/p>\n

              Question 17.
              \nPrepare Three Column Cash book from the following particulars.
              \n2014 \u2014 Rs.
              \nMay 1 \u2014 Cash Balance \u2014 15000
              \n1 \u2014 Bank Balance \u2014 10000
              \n3 \u2014 Paid Insurance premium by cheque \u2014 4200
              \n6 \u2014 Sold goods \u2014 22000
              \n7 \u2014 Cash deposited into Bank \u2014 12000
              \n10 \u2014 Received cash from Neelima \u2014 6800
              \nDiscount allowed \u2014 200
              \n12 \u2014 Withdrawn from Bank for personal use \u2014 6000
              \n14 \u2014 Withdrawn from Bank for office use \u2014 5000
              \n15 \u2014 Telephone bill paid by cheque \u2014 3000
              \n16 \u2014 Cartage paid \u2014 600
              \n18 \u2014 Cheque received from Syamala \u2014 7000
              \nDiscount allowed \u2014 500
              \n19 \u2014 Deposited Syamala cheque into bank
              \n21 \u2014 Received rent \u2014 800
              \n24 \u2014 Cheque issued to Lalitha \u2014 2600
              \nDiscount received \u2014 400
              \n28 \u2014 Paid for postage \u2014 300
              \n29 \u2014 Salaries paid \u2014 4200
              \n30 \u2014 Cash purchases \u2014 6000
              \n31 \u2014 Paid for charity by cheque \u2014 2000
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 18.
              \nPrepare Three Column Cash book ofMr.Stephen from the following particulars.
              \n2004 \u2014 Rs.
              \nJune 1 \u2014 Cash in Hand \u2014 10,000
              \nCash at Bank \u2014 5,000
              \n4 \u2014 Cash Sales \u2014 3,500
              \n6 \u2014 Issued cheque to ‘B’ \u2014 2,950
              \nDiscount \u2014 50
              \n7 \u2014 Received cash from\u2019R’ \u2014 1,200
              \nCheque \u2014 2,500
              \nDiscount \u2014 100
              \n(Cheque deposited with bank)
              \n12 \u2014 Cash withdrawn from bank for office use \u2014 800
              \n20 \u2014 Paid salaries by cheque \u2014 1,000
              \nAnswer:
              \n\"AP<\/p>\n

              Question 19.
              \nPrepare Three Column Cash book of Mrs. Vijaya from the following particulars
              \n2010 \u2014 Rs.
              \nAugust 1 \u2014 Cash in Hand \u2014 5,600
              \nCash at Bank \u2014 10,500
              \n3 \u2014 Cash Sales \u2014 2,100
              \n5 \u2014 Issued cheque to Venkatesh \u2014 2,500
              \nDiscount receIved 200
              \n12 \u2014 Cash deposited Into the bank \u2014 1,500
              \n15 \u2014 Paid interest through cheque \u2014 1,200
              \n18 \u2014 Withdrew cash from bank for office use \u2014 600
              \n20 \u2014 Cash purchases 2,600
              \n25 \u2014 Sold old machinery 3,200
              \n30 \u2014 Received a cheque from Ganesh and
              \ndeposited it in the bank \u2014 7,500
              \nDiscount allowed \u2014 100
              \nAnswer:
              \n\"AP<\/p>\n

              Question 20.
              \nPrepare Analytical Petty Cash from the following particulars:
              \n2013 \u2014 Rs.
              \nAugust 1 \u2014 Received advance from Head Cashier \u2014 300
              \n7 \u2014 Paid for bus charges \u2014 20
              \n8 \u2014 Purchased white papers \u2014 10
              \n10 \u2014 Paid auto charges \u2014 20
              \n15 \u2014 Paid wages \u2014 30
              \n18 \u2014 Telegram charges \u2014 20
              \n21 \u2014 Purchased stationery \u2014 25
              \n23 \u2014 Tea expenses \u2014 18
              \n25 \u2014 Paid for speed post \u2014 22
              \n27 \u2014 Refreshments \u2014 25
              \n31 \u2014 Paid for carriage \u2014 15
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 21.
              \nPrepare Analytical Petty Cash Book.
              \nJan. 1 \u2014 Balance of cash \u2014 175
              \nReceived advance from Cashier \u2014 125
              \n3 \u2014 Tiffin expenses \u2014 40
              \n5 \u2014 Postal stamps \u2014 25
              \n9 \u2014 Bus charges \u2014 28
              \n11 \u2014 Tea expenses \u2014 16
              \n14 \u2014 Auto charges \u2014 20
              \n18 \u2014 Tea expenses \u2014 16
              \n21 \u2014 Paid to Suresh \u2014 30
              \n25 \u2014 Sent telegram to Mumbai \u2014 25
              \n27 \u2014 Refreshments to guests \u2014 20
              \n29 \u2014 Paid Repairing charges \u2014 25
              \n31 \u2014 Postal cards and covers \u2014 20
              \nAnswer:
              \n\"AP<\/p>\n

              Question 22.
              \nFrom the following information, prepare Analytical Petty Cash Book and also prepare ledger:
              \n2014 \u2014 Rs.
              \nMarch 1 \u2014 Advance from cashier \u2014 400
              \n3 \u2014 Paid from stationery \u2014 35
              \n5 \u2014 Office expenses \u2014 20
              \n8 \u2014 Tiff I n Expenses \u2014 40
              \n10 \u2014 Paid for postage \u2014 25
              \n13 \u2014 Paid Zerox copies \u2014 20
              \n15 \u2014 Bus charges \u2014 18
              \n18 \u2014 Postal stamps \u2014 25
              \n20 \u2014 Tea expenses \u2014 30
              \n23 \u2014 Auto charges \u2014 45
              \n30 \u2014 Paid to Vani \u2014 50
              \nAnswer:
              \n\"AP<\/p>\n

              \"AP<\/p>\n

              Question 23.
              \nPrepare three column cash book from the following information.
              \n2020 \u2014 Rs.
              \nJanuary 1 \u2014 Cashmhand \u2014 10,000
              \nCash at bank \u2014 7,500
              \n3 \u2014 Cash sales \u2014 3,000
              \n6 \u2014 Issued cheque to Raju \u2014 3,500
              \nDiscount Received \u2014 500
              \n10 \u2014 Deposited cash into bank \u2014 1,000
              \n15 \u2014 Received cash from Ravi \u2014 5,600
              \nDiscount Allowed \u2014 400
              \n17 \u2014 Paid Interest \u2014 1,200
              \n18 \u2014 Withdrawn cash from bank for office use 1,000
              \n20 \u2014 Cash purchases 2,600
              \n25 \u2014 Paid salaries by cheque \u2014 1,500
              \n30 \u2014 Received interest \u2014 500
              \nAnswer:
              \n\"AP<\/p>\n","protected":false},"excerpt":{"rendered":"

              Students must practice these AP Inter 1st Year Accountancy\u00a0Important Questions 8th Lesson Cash Book to boost their exam preparation. AP Inter 1st Year Accountancy Important Questions 8th Lesson Cash Book Long Answer Questions Question 1. Describe the meaning and importance of cash book. Answer: Among the entire subsidiary books cash book is one of the … Read more<\/a><\/p>\n","protected":false},"author":5,"featured_media":39313,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[13],"tags":[],"jetpack_featured_media_url":"https:\/\/apboardsolutions.com\/wp-content\/uploads\/2022\/11\/Chapter-8-Cash-Book.png","_links":{"self":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/33375"}],"collection":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/comments?post=33375"}],"version-history":[{"count":1,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/33375\/revisions"}],"predecessor-version":[{"id":33400,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/33375\/revisions\/33400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/media\/39313"}],"wp:attachment":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/media?parent=33375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/categories?post=33375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/tags?post=33375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}