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Read the following hypothetical Case Study and answer the given questions:
The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:
• He received a telephone bill worth ₹500.
• He withdrew ₹2,500 for his personal use.
• He gave ₹500 from for the cash register to his nephew as a gift.
• Goods worth ₹2,000 were lost due to damages
The transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.
  • a)
    Drawings
  • b)
    Creditors
  • c)
    Debtors
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Read the following hypothetical Case Study and answer the given quest...
The transaction where he gave cash to his nephew will be recorded as drawings in the Cash column of the Cash Book.
A journal entry to the drawing account consists of a debit to the drawing account and a credit to the cash account. A journal entry closing the drawing account of a sole proprietorship includes a debit to the owner's capital account and a credit to the drawing account.
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Most Upvoted Answer
Read the following hypothetical Case Study and answer the given quest...

Explanation:

Transaction Type:
- The transaction where he gave cash to his nephew falls under the category of Drawings in the Cash Book.

Drawings in Cash Book:
- Drawings refer to the amount of cash withdrawn by the owner of the business for personal use.
- It is recorded on the debit side of the Cash Book as it reduces the owner's equity in the business.

Recording the Transaction:
- When Ramesh gave ₹500 to his nephew from the cash register as a gift, it is considered a withdrawal for personal use.
- Therefore, this transaction will be recorded in the Cash column of the Cash Book under Drawings.

Impact on Cash Balance:
- This transaction will decrease the cash balance in the Cash Book by ₹500, as the amount was taken out of the business for personal purposes.

Overall Effect:
- The transaction of giving cash to his nephew will be recorded as Drawings in the Cash column of the Cash Book, reflecting the reduction in the business's cash balance due to the owner's withdrawal for personal use.
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Community Answer
Read the following hypothetical Case Study and answer the given quest...
Goods lost due to damage will be recorded in
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Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer?
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Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth ₹500.• He withdrew ₹2,500 for his personal use.• He gave ₹500 from for the cash register to his nephew as a gift.• Goods worth ₹2,000 were lost due to damagesThe transaction where he gave cash to his nephew will be recorded as ___________ in the Cash column of the Cash Book.a)Drawingsb)Creditorsc)Debtorsd)None of theseCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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