 From the following given, Prepare a triple cash book:

Chaitra 1 : Cash in hand Rs 15,000 and at bank Rs 8,000.

Chaitra 2: Received from Prabin Rs 900, discount allowed Rs 100.

Chaitra 3 : Deposited into bank Rs 500.

Chaitra 4 : Purchased goods for Rs 1,000 and paid by cheque.

Chaitra 5 : Sold goods to Prakash on credit Rs 500.

Chaitra 7 : Recceived from Prakash on Rs 400 by cheque in full settlement of his account.

Chaitra 8 : Sold goods for Rs 200.

Chaitra 10 : paid to Milan Rs 950 by cheque, discount received Rs 50.

Chaitra 11 : Paid Salaries Rs 200.

Chaitra 12 : Withdrew from bank Rs 2,000.

Chaitra 15 : Paid rent through cheque Rs 500.

Chaitra 18 : Paid for stationery Rs 1,000.

Chaitra 20 : Received from Rajesh Rs 1,800 in full settlement of his account of Rs 2,000.

Chaitra 25: Deposited into the bank Rs 3,000.

 Following cash and banking transactions were given to you;

Chaitra 1 : Balance of cash in hand Rs 7,200 and at bank Rs 21,500.

Chaitra 8 Receive cheque of Rs 4,000 from Puja Karki.

Chaitra 16 : Bought goods for Rs 8,000 and paid cash Rs 3,000 and balance by cheque.

Chaitra 21 : Drawn for office use Rs 7,000.

Chaitra 30 : Paid salary of Rs 1,200 by cheque and rent of Rs 500 in cash.

Required: Cash book with cash and bank column.

What is a Purchase Book?

Purchase Book
It is also known as a Purchase journal, Invoice book or Purchase day book. Purchase book is a
special purpose subsidiary book prepared by a business to record all credit purchases. Nowadays
all these recordings occur in ERPs (Enterprise Resource Planning.) and only small firms resort
solely to notebooks or MS-Excel.
Few things to note are,
Purchases recorded are only for goods or items related to core business operations of a company
i.e. goods procured for resale.
Example – If a grocery business purchases office furniture it will not be posted in the purchases
book as it is considered as “purchase of an asset” and not goods.
Cash purchases are recorded in cash book and credit purchases are recorded in purchase book.
Sample Format of Purchase Book

From the following particulars, prepare the Purchases Book of a Stationary

merchant:
01/02/2018 Purchased from M/s Ram & Sons.
100 Packets of the ball pens @ Rs 20 per Packets
60 Packets of the Ink pens @ Rs 40 per Packets
04/02/2018 Purchased from M/s sham & Sons.
50 Ream of the A4 size paper reams @ Rs 150 per Ream
200 Pcs of the Small Note Book @ Rs 18 per pcs
100 Pcs of the Lager Note Book @ Rs 28 per pcs
07/02/2018 Purchased from M/s Raghunath store.
70 Boxes of the pencils @ Rs 15 per Box
40 Boxes of the erasers @ Rs 20 per Box
Solution:-
Purchase Book
 Purchase Return Book
Purchase return book is also called returned outward book. When the purchases of goods low
qualities disqualified or discolor or damage those are returned to the suppliers are recorded
through purchase return book.
Debit Note:
Debit note is a document for recording purchase return. It is prepared by buyer and sent to the
suppliers for their information of debiting their account equal to the amount of goods return. It
also includes the reasons of goods returned. It is important document to prepare purchase
return book.
FORMAT OF PURCHASE RETURN:
Purchase Return Book
Date Name of Suppliers Debit P.R Details Total (Rs)
Note no.
Sales return book:
Sales return book is also known as return inward book. It records the return of goods which
were sold. Due to various reasons goods sold once may be returned to the seller. Some reason
may be as: poor quality of goods, late delivery of goods, damage of goods, etc.
Credit Note:
A credit note is sent to the customer who returns the goods.
FORMAT OF SALES RETURN:
Sales Return Book
Date Name of Customer Credit P.R Details Total (Rs)
Note no.
Examples of purchase return book
Record the following transactions in the returns outward book of M/S Gupta Traders and post
same into ledger ( T-A/C)
Kartik 8: Returned to Usha Traders, Kathmandu;
10 Shirts @ Rs 500 each
5Baby Frocks @ Rs 100 each.
Size not according to order.
Kartik 28 : Return to Famous Stores, Patan
20 Terelyn Shirts @ Rs 250 each.
5 Woolen Suits @ Rs 900 each.
Received in excess of quantity orederd original invoice subject to 30% trde discount.
Petty Cash Book :
A business firm needs to make a large number of small payments such as bus and taxi fares,
cartage, postage, telegram, refreshments, etc. To make such payments through cheque or bank
is bothersome as well as inconvenient for both parties. These types of payments are facilitated
in separate fund and maintained so as to make such small payment in cash. It becomes easy and
fast to pay such amounts out of a readily cash fund, called petty cash.
Simple Petty Cash Book.
A Simple Petty Cash Book contains only one amount of column for all classes of petty payment.
It does not contain separate amount of columns for each class of petty payment. It is written up
on the lines of a simple cash book.

SIMPLE PETTY CASH BOOK

Dr. Cr.
Amount Received Date Account Titles P.R Amount Payment
Example:
Based on the following , prepare simple Petty Cash Book:
2061 Shrawan 1: Cheque received by Petty Cashier on Imprest Rs 500
2061 Shrawan 2: Paid for Postages Rs20.
2061 Shrawan 2: Paid for Telegrams Rs25.
2061 Shrawan 2: Paid for Stationery Rs15.
2061 Shrawan 3: Taxi fare for manager Rs 18.
2061 Shrawan 3 : Repairs to Furniture Rs 25.
2061 Shrawan 4: Wages to casual workers Rs30.
2061 Shrawan 4: Paid for Postages Rs15.
2061 Shrawan 4: Paid for Telegrams Rs17.
2061 Shrawan 4: Paid for Stationery Rs15.
2061 Shrawan 5: Cartage for goods Rs 25.
2061 Shrawan 5: Bus Fare Rs 10.
2061 Shrawan 6: Bill for Printing Rs 32.
2061 Shrawan 6: Paid for Postages Rs12.
2061 Shrawan 6: Paid for Telegrams Rs13.
2061 Shrawan 6: Paid for wages Rs 18.
2061 Shrawan 7: Refreshment to customers Rs 25.
2061 Shrawan 7: Taxi fare to M anager Rs 20