At 1 September the financial position of Sara Young's business was: £ Cash in hand 80 Balance at bank Debtors - AB 900 200 CD 500 EF 300 Stock 1,000 Creditors - GH 600 IJ 1,400 During September: 1 The three debtors settled their accounts by cheque subject to a cash discount of 4%. 2 A cheque for £100 was cashed for office use. 3 GH was paid by cheque less 7.5%. 4 IJ's account was settled, subject to a discount of 5%, by cheque. 5 Wages of £130 were paid in cash. Required: (a) Open a three-column cash book and the accounts for the debtors and creditor 1 September. (b) Record the above transactions for September.

At 1 September the financial position of Sara Young's business was: £ Cash in hand 80 Balance at bank Debtors - AB 900 200 CD 500 EF 300 Stock 1,000 Creditors - GH 600 IJ 1,400 During September: 1 The three debtors settled their accounts by cheque subject to a cash discount of 4%. 2 A cheque for £100 was cashed for office use. 3 GH was paid by cheque less 7.5%. 4 IJ's account was settled, subject to a discount of 5%, by cheque. 5 Wages of £130 were paid in cash. Required: (a) Open a three-column cash book and the accounts for the debtors and creditor 1 September. (b) Record the above transactions for September.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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