Two column cash books problems and asnwers

Answer 1

Problem 1:

Prepare a two-column cash book for the month of January 2021 based on the following transactions:

1. Jan 1 - Balance brought down from December 2020: $1,000
2. Jan 5 - Received cash from sales: $500
3. Jan 10 - Paid rent: $200
4. Jan 15 - Received cash from debtors: $300
5. Jan 20 - Paid salaries: $400
6. Jan 25 - Received cash from investment: $600
7. Jan 30 - Paid electricity bill: $100

Answer:

| Date | Particulars | Cash Received ($) | Cash Paid ($) | Balance ($) |
|---------|-------------------------------|-------------------|---------------|-------------|
| Jan 1 | Balance b/d | - | - | $1,000 |
| Jan 5 | Sales | $500 | - | $1,500 |
| Jan 10 | Rent | - | $200 | $1,300 |
| Jan 15 | Debtors | $300 | - | $1,600 |
| Jan 20 | Salaries | - | $400 | $1,200 |
| Jan 25 | Investment | $600 | - | $1,800 |
| Jan 30 | Electricity bill | - | $100 | $1,700 |

Problem 2:

Prepare a two-column cash book for the month of February 2021 based on the following transactions:

1. Feb 1 - Balance brought down from January 2021: $1,700
2. Feb 5 - Received cash from sales: $700
3. Feb 10 - Paid rent: $300
4. Feb 15 - Received cash from debtors: $400
5. Feb 20 - Paid salaries: $500
6. Feb 25 - Received cash from investment: $800
7. Feb 28 - Paid telephone bill: $150

Answer:

| Date | Particulars | Cash Received ($) | Cash Paid ($) | Balance ($) |
|---------|-------------------------------|-------------------|---------------|-------------|
| Feb 1 | Balance b/d | - | - | $1,700 |
| Feb 5 | Sales | $700 | - | $2,400 |
| Feb 10 | Rent | - | $300 | $2,100 |
| Feb 15 | Debtors | $400 | - | $2,500 |
| Feb 20 | Salaries | - | $500 | $2,000 |
| Feb 25 | Investment | $800 | - | $2,800 |
| Feb 28 | Telephone bill | - | $150 | $2,650 |