Question

Prepare a single-column cash book for March 2016 using the given transactions: opening balance, cash received from Althaf, rent paid, goods purchased and sold for cash, stationary purchased, cash paid to Rahul, salary paid, and rent paid.

Answer 1

To prepare a single-column cash book for March 2016, record the opening balance and various cash transactions. Update the balance after each transaction to get the current account balance. Balance is - 5000, Cash received from Althaf is 3000, Rent paid is - 1000, Goods purchased and sold for cash is - 2000, Stationary purchased is - 500, Cash paid to Rahul is - 1000, Salary paid is - 1500, Rent paid is - 1000, Final balance is 1000.

Step-by-step explanation:

A cash book is a financial record that tracks cash inflows and outflows in a business. To prepare a single-column cash book for March 2016, you would need to record the opening balance and various cash transactions that occurred during the month. Here is an example of how the cash book could be filled:

DateParticularsLFAmount (Debit)Amount (Credit)BalanceMarch 1Opening Balance--5000-March 5Cash received from Althaf+3000-8000March 10Rent paid-1000-7000March 15Goods purchased and sold for cash-2000-5000March 20Stationary purchased-500-4500March 25Cash paid to Rahul-1000-3500March 28Salary paid-1500-2000March 31Rent paid-1000-1000

At the end of each transaction, the balance is updated. The final balance of 1000 represents the current account balance for the month of March 2016.