CA Foundation · Accounting · Accounting Process
The cash column of Gupta & Sons' cash book shows an opening balance of Rs 12,000 (Dr). During the month, cash received from customers was Rs 48,000, cash sales Rs 30,000, and cash paid to suppliers Rs 41,000. Cash of Rs 20,000 was deposited into the bank (contra entry), and Rs 6,000 was withdrawn from the bank for office use. What is the closing cash balance?
Closing cash is Rs 35,000. Receipts are opening 12,000, customers 48,000, cash sales 30,000 and bank withdrawal 6,000, totalling 96,000. Payments are 41,000 to suppliers plus 20,000 deposited in the bank, totalling 61,000. The difference is 35,000.
- ARs 29,000Correct
- BRs 23,000
- CRs 49,000
- DRs 35,000
Explanation
Cash receipts = 12,000 + 48,000 + 30,000 + 6,000 (withdrawal) = 96,000. Payments = 41,000 + 20,000 (deposited) = 61,000. Closing cash = 96,000 - 61,000 = 35,000. Recheck: 12,000+48,000+30,000 = 90,000; 90,000-41,000 = 49,000; 49,000-20,000 = 29,000; +6,000 = 35,000.
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