In the following transactions in the cash book prepare cash book and c...
Cash Book Preparation for Mr. Vijay (September 2023)
To create a cash book for Mr. Vijay, we will record all cash transactions in the cash column and summarize the cash position at the end of the month. Below is a detailed cash book for September:
Cash Book
| Date | Particulars | Cash In (₹) | Cash Out (₹) | Balance (₹) |
|------------|-------------------------------------|--------------|---------------|--------------|
| September 1| Cash in hand | 19,000 | | 19,000 |
| September 3| Sold goods for cash | 10,000 | | 29,000 |
| September 4| Credit purchases from banquet | | 18,000 | 11,000 |
| September 6| Received from Mohan (after discount)| 4,160 | | 15,160 |
| September 8| Paid for electricity charges | | 850 | 14,310 |
| September 9| Cash deposited in bank | | 20,000 | -5,690 |
| September 14| Paid cash to Venkat (settlement) | | 17,600 | -23,290 |
| September 24| Received cash from Jagan | 4,800 | | -18,490 |
| September 26| Salaries paid | | 4,000 | -22,490 |
| September 28| Cash drawn from bank | 5,000 | | -17,490 |
Summary of Transactions
- **Beginning Cash**: ₹19,000
- **Total Cash Inflows**: ₹29,960 (from sales and receipts)
- **Total Cash Outflows**: ₹60,450 (includes payments and bank deposits)
- **Ending Cash Balance**: -₹17,490
Notes
- The cash book reflects the cash position of Mr. Vijay at the end of September, indicating a negative balance due to high outflows.
- It's critical to manage cash flow effectively to avoid such deficits in the future.
This cash book allows Mr. Vijay to monitor his cash transactions for better financial planning and decision-making.