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Q5 :
Describe the advantages of sub-dividing the Journal.

Q6 :
What do you understand by balancing of account?

Numerical questions :
Q1 :
Enter the following transactions in a simple cash book for December 2005:

Rs
01 Cash in hand 12,000
05 Cash received from Bhanu 4,000

07 Rent Paid 2,000
10 Purchased goods Murari for cash 6,000

15 Sold goods for cash 9,000
18 Purchase stationery 300
22 Cash paid to Rahul on account 2,000
28 Paid salary 1,000

30 Paid rent 500

Q2 :
Record the following transaction in simple cash book for November 2005:

Rs

01 Cash in hand 12,500
04 Cash paid to Hari 600
07 Purchased goods 800

12 Cash received from Amit 1,960
16 Sold goods for cash 800
20 Paid to Manish 590

25 Paid cartage 100
31 Paid salary 1,000