A simple cash book records the cash inflow and outflow activities. Based on the given transactions, the closing balance is calculated as Rs. 18,000, after accounting for sales, purchases, and various payments including rent and wages.
To create a simple cash book based on the transactions provided, we need to record the cash inflow and outflow activities.
Here's how it could look like:
Simple Cash Book
Date | Particulars | LF | Cash Dr. | Cash Cr.
2021 Jan 1 | Opening Balance | | 25,000 |
2021 Jan 1 | Bank Deposit | | | 10,000
2021 Jan 1 | Payment to Hari | | | 5,000
2021 Jan 1 | Purchase of Goods | | | 8,000
2021 Jan 1 | Sale of Goods | | 20,000 |
2021 Jan 1 | Rent Payment | | | 4,000
2021 Jan 1 | Wages Payment | | | 5,000
2021 Jan 1 | Closing Balance | | 18,000 |
The closing balance is calculated as follows: Starting with the opening balance of Rs. 25,000, we add cash received from the sales of goods (Rs. 20,000) and subtract payments made (Rs. 10,000 for bank deposit, Rs. 5,000 to Hari, Rs. 8,000 for purchase of goods, Rs. 4,000 for rent, and Rs. 5,000 for wages), which results in a closing balance of Rs. 18,000.