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### Sub-Division of Journal-Cash Book

Task: Prepare a Simple Cash Book from the following transactions of Suresh, Delhi:

\begin{tabular}{|c|c|c|c|c|c|c|c|}
\hline
\textbf{Date} & \textbf{Details} & \textbf{Amount (₹)} & & \textbf{Date} & \textbf{Details} & \textbf{Amount (₹)} \\
\hline
April 1 & Suresh commenced business with cash & 80,000 & & April 17 & Paid for stationery & 200 \\
\hline
April 3 & He bought goods & 50,000 & & April 18 & Paid for office furniture & 3,000 \\
\hline
April 5 & Sold goods for cash & 40,000 & & April 21 & Received from Kailash Chand & 6,800 \\
\hline
April 6 & Received cash from Manohar & 3,600 & & April 22 & Paid for advertising & 1,008 \\
\hline
April 9 & Paid into bank & 30,000 & & April 25 & Purchased postage stamps & 80 \\
\hline
April 13 & Paid cash to Harikrishan & 2,150 & & April 28 & Paid rent & 1,120 \\
\hline
April 30 & Paid electricity charges & 150 \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Certainly! Let's prepare a simple cash book using the provided transactions. The cash book will contain two sides: the debit side (left side), which records all cash inflows (receipts), and the credit side (right side), which records all cash outflows (payments).

We start recording the initial amount of cash Suresh commenced the business with and then continue to enter each cash transaction in chronological order.

### Simple Cash Book

#### Debit Side (Receipts)
| Date | Particulars | Amount (₹) |
|------------|-------------------------------|------------|
| April 1 | To Capital (commenced business) | 80,000 |
| April 5 | To Sales (sold goods for cash) | 40,000 |
| April 6 | To Manohar (received cash) | 3,600 |
| April 21 | To Kailash Chand (received) | 6,800 |

#### Credit Side (Payments)
| Date | Particulars | Amount (₹) |
|------------|-------------------------------|------------|
| April 3 | By Purchases (bought goods) | 50,000 |
| April 9 | By Bank (paid into bank) | 30,000 |
| April 13 | By Harikrishan (paid cash) | 2,150 |
| April 17 | By Stationery (paid) | 200 |
| April 18 | By Office Furniture (paid) | 3,000 |
| April 22 | By Advertising (paid) | 1,008 |
| April 25 | By Postage Stamps (purchased) | 80 |
| April 28 | By Rent (paid) | 1,120 |
| April 30 | By Electricity Charges (paid) | 150 |

### Calculation of Balances

Total Inflows:
- To Capital: ₹80,000
- To Sales: ₹40,000
- To Manohar: ₹3,600
- To Kailash Chand: ₹6,800
- Total Inflows: ₹1,30,400

Total Outflows:
- By Purchases: ₹50,000
- By Bank: ₹30,000
- By Harikrishan: ₹2,150
- By Stationery: ₹200
- By Office Furniture: ₹3,000
- By Advertising: ₹1,008
- By Postage Stamps: ₹80
- By Rent: ₹1,120
- By Electricity Charges: ₹150
- Total Outflows: ₹87,708

Closing Balance:
- Opening cash balance + Total Inflows - Total Outflows
- ₹80,000 + ₹50,400 - ₹87,708 = ₹42,692

### Summary
Total Inflows: ₹50,400

Total Outflows: ₹87,708

Closing Balance: ₹42,692

Suresh's Simple Cash Book is correctly prepared considering all the transactions, leading to a closing balance of ₹42,692 at the end of April.

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