Cash Book Entry: Cheque Issued to Dinesh, Cash Received, and Cheque Sent to Bank

To record the transaction in the cash book, follow the steps below:

1. Identify the transaction details:
- Cheque issued to Dinesh: Rs 25,000
- Cash received from Ashok: Rs 8,000
- Cheque received from Ashok: Rs 40,000

2. Analyze the transaction:
- The cheque issued to Dinesh implies an outflow of funds from the business.
- The cash received from Ashok implies an inflow of funds into the business.
- The cheque received from Ashok needs to be deposited into the bank.

3. Prepare the cash book entry:

a) Cheque issued to Dinesh:
- Debit Dinesh's account and Credit Bank account with Rs 25,000.

Example:
| Date | Particulars | L.F. | Debit | Credit |
|-----------|--------------------|------|---------|---------|
| DD/MM/YY | Dinesh's Account | | 25,000 | |
| | To Bank Account | | | 25,000 |

b) Cash received from Ashok:
- Debit Cash account and Credit Ashok's account with Rs 8,000.

Example:
| Date | Particulars | L.F. | Debit | Credit |
|-----------|-------------------|------|---------|--------|
| DD/MM/YY | Cash Account | | 8,000 | |
| | To Ashok's Account| | | 8,000 |

c) Cheque sent to the bank:
- Debit Bank account and Credit Cheque account with Rs 40,000.

Example:
| Date | Particulars | L.F. | Debit | Credit |
|-----------|-------------------|------|---------|--------|
| DD/MM/YY | Bank Account | | 40,000 | |
| | To Cheque Account | | | 40,000 |

4. Explanation of the entries:
- The first entry records the cheque issued to Dinesh, reducing the bank balance as the funds are transferred to Dinesh's account.
- The second entry reflects the cash received from Ashok, increasing the cash balance.
- The third entry denotes the cheque received from Ashok, which needs to be deposited into the bank.

5. Update the balances:
- Deduct Rs 25,000 from the bank balance after issuing the cheque to Dinesh.
- Add Rs 8,000 to the cash balance after receiving cash from Ashok.
- Add Rs 40,000 to the bank balance after depositing the cheque received from Ashok.

6. Verify the accuracy of the entries:
- Cross-check the figures and ensure that the debits and credits are correctly recorded.
- Verify that the updated balances match the actual cash and bank balances.

By following these steps, you can accurately record the cash book entries for the cheque issued, cash received, and cheque sent to the bank. Remember to maintain consistency

Dinesh A/C Dr 25000
To Bank A/C 25000

Cash A/C Dr 8000
To Creditor's A/C 8000

Bank A/C Dr 40000
To Ashok's A/C 40000