Mr. Chaturvedi maintains two bank accounts. Prepare his columnar cash

Mr. Chaturvedi maintains two bank accounts. Prepare his columnar cash book from the following particulars: 2016 (₹) May 1 Cash in hand 34,000 Balance with Hongkong Bank 75,200 Balance with Citi Bank 1,20,000 May 3 Cash drawn from Citi Bank for office use 25,000 May 8 Sold goods to Diwedi for ₹ 80,000 and received from him ₹ 20,000 in cash and a cheque for the balance. The cheque is deposited in Hongkong Bank on 9th and the bank credited the amount on 15th and debited ₹ 25 as its collection charges. May 12 Purchased goods for ₹ 40,000 at 20% trade discount. 25% of the amount is paid in cash and issued a cheque on Citi Bank for the balance amount. May 20 Paid Wages ₹ 36,000 and Salary ₹ 4,000. May 22 A cheque for ₹ 50,000 is drawn on Citi Bank and it is deposited in Hongkong Bank. May 23 Purchased land for ₹ 3,20,000 and a cheque is issued on Hongkong Bank. May 24 A cheque for ₹ 10,000 which was received from Mohan and was deposited in Citi Bank on 25th April is dishonoured and the bank debited ₹ 100 as bank charges on this cheque. The amount of dishonoured cheque and bank charges is received from Mohan in cash on 25th. May 26 Deposited cash ₹ 30,000 in Hongkong Bank. May 28 Sold old typewriter for ₹ 2,000 and old newspapers for ₹200 in cash. May 30 Interest charged by Hongkong Bank ₹ 400. May 31 Bank charges by Citi Bank ₹ 180 and Hongkong Bank ₹ 340.

Answer» Mr. Chaturvedi maintains two bank accounts. Prepare his columnar cash book from the following particulars:

2016		(₹)
May 1	Cash in hand	34,000
	Balance with Hongkong Bank	75,200
	Balance with Citi Bank	1,20,000
May 3	Cash drawn from Citi Bank for office use	25,000
May 8	Sold goods to Diwedi for ₹ 80,000 and received from him ₹ 20,000 in cash and a cheque for the balance. The cheque is deposited in Hongkong Bank on 9th and the bank credited the amount on 15th and debited ₹ 25 as its collection charges.
May 12	Purchased goods for ₹ 40,000 at 20% trade discount. 25% of the amount is paid in cash and issued a cheque on Citi Bank for the balance amount.
May 20	Paid Wages ₹ 36,000 and Salary ₹ 4,000.
May 22	A cheque for ₹ 50,000 is drawn on Citi Bank and it is deposited in Hongkong Bank.
May 23	Purchased land for ₹ 3,20,000 and a cheque is issued on Hongkong Bank.
May 24	A cheque for ₹ 10,000 which was received from Mohan and was deposited in Citi Bank on 25th April is dishonoured and the bank debited ₹ 100 as bank charges on this cheque. The amount of dishonoured cheque and bank charges is received from Mohan in cash on 25th.
May 26	Deposited cash ₹ 30,000 in Hongkong Bank.
May 28	Sold old typewriter for ₹ 2,000 and old newspapers for ₹200 in cash.
May 30	Interest charged by Hongkong Bank ₹ 400.
May 31	Bank charges by Citi Bank ₹ 180 and Hongkong Bank ₹ 340.