Question

March 01: Cash balance $1,450 (Dr.), bank balance $1,500 (Dr.).

March 02: Paid Mark & Co. by check $120.
March 04: Received from John & Co. a check amounting to $400.
March 05: Deposited into bank the check received from John & Co. on March 04.
March 08: Purchased stationary for cash, $25.
March 12: Purchased merchandise for cash, $525.
March 13: Sold merchandise for cash, $1,800.
March 15: Cash deposited into bank, $850.
March 17: Withdrew from bank for personal expenses, $40.
March 19: Issued a check for merchandise purchased, $630.
March 20: Drew from bank for office use, $150.
March 22: Received a check from Peter & Co. and deposited the same into bank immediately, $880.
March 25: Paid a check to Daniel Inc. for $270.
March 26: Bought furniture for cash for office use, $175.
March 28: Paid office rent by check, $120.
March 29: Cash sales, $650.
March 30: Withdrew from bank for office use, $145.
March 31: Paid salary to employees by check, $300.
Required: Record the above transactions in a double column cash book and post entries there from into relevant ledger accounts.​

Answer 1

Answer:Balance Dr side, Cash column $2,850, Bank column $4,030

Balance Cr side, cash column $2,850 Bank column $4,030

Balance C/d Dr side Cash column $415, Balance C/d Cr side Bank column $2,255

Balance B/d Dr side Bank column$2,255, Balance B/d Cr side Cash column $415

Step-by-step explanation:

Double Column Cash Book

March 1 Balance : Cash Dr $1,450, Bank Dr$ 1,500

March 2 Mark Bank Cr $120

March 4 John Bank Dr $400

March 5 Bank Dr $400

March 8 stationery Cash Cr$ 25

March 12 merchandise Cash Cr $1,800

March 15 Cash contra entry Bank Dr $850, Cash Cr$850

March 17 withdrawal contra entry Cash Dr $40, Bank Cr $40

March 19 merchandise Bank Cr $630

March 20 withdrawal contra entry Cash Dr $150, Bank Cr $150

March 22 Cash Bank Dr $880

March 25 Bank Bank Cr $270

March 26 Furniture Cash Cr $175

March 28 Office Rent Bank Cr $120

March 29 Sales Cash Dr $650

March 30. Bank contra entry Cash Dr $145, Cash Bank Cr $145

March 31 Salary Bank Cr $300

Balance Cash column Dr side $2,850, Bank column Dr side $4,030

Balance Cash column Cr side $2,850, Bank column Cr side $4,030

Balance carried down Cash column Dr side $415, Balance carried down Bank column Cr side $2,255

Balance Brought down Bank column Dr side $2,255, Balance Brought down Cash column $415

Ledger entry

Capital Account : Cr $ 2,950 ( cash balance + bank balance)

Sales Account Cash Cr $650

Purchase Account : stationery Dr $25,Merchandise Dr $1,800, Merchandise Dr $630 Total $2,455

Bank Account Dr side Mark and co $120, Office Rent $120, Salary $300, Daniel Inc $270 Total $2,530,Balance carried down $1,720

Bank Account Cr side John $400, Bank $400,Peter and co $880,Cash $850 Total $2,530

Drawing Account : withdrawal Dr$40, withdrawal Dr $150, withdrawal Dr $145 Total $335

Cash Account :withdrawal Cr $40, withdrawal Cr $150, withdrawal Cr $145

Furniture Account : Cash $175