Enter the following in the three-column cash book of an office supply shop. Balance off the cash book at the end of the month and show the discount accounts in the general ledger. January 2017 1 January Balances brought forward: Cash Ksh. 420; Bank Ksh. 4,940. 2 January The following paid us by cheque, in each case deducting a 5 per cent cash discount: S Braga Ksh. 820; L Pine Ksh. 320; G Hodd Ksh. 440; M Rae Ksh. 1,040. 3 January Cash sales paid direct into the bank Ksh. 740. 5 January Paid rent by cash Ksh. 340. 6 January We paid the following accounts by cheque, in each case deducting 2.5 per cent cash discount: M Peters Ksh. 360; G Graham Ksh. 960; F Bell Ksh. 400. 8 January Withdrew cash from the bank for business use Ksh. 400. 10 January Cash sales Ksh. 1,260. 12 January B Age paid us their account of Ksh. 280 by cheque less Ksh. 4 cash discount. 14 January Paid wages by cash Ksh. 540. 16 January We paid the following accounts by cheque: R Todd Ksh. 310 less cash discount Ksh. 15; F Dury Ksh. 412 less cash discount Ksh. 12. 20 January Bought fixtures by cheque Ksh. 4,320. 24 January Bought lorry paying by cheque Ksh. 14,300. 29 January Received Ksh. 324 cheque from A Line. 30 January Cash sales Ksh. 980. 30 January Bought stationery paying by cash Ksh. 56.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 5EA: Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200....

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Enter the following in the three-column cash book of an office supply shop. Balance off the cash book at the end of the month and show the discount accounts in the general ledger.

January 2017

1 January Balances brought forward: Cash Ksh. 420; Bank Ksh. 4,940.
2 January The following paid us by cheque, in each case deducting a 5 per cent cash discount: S Braga Ksh. 820; L Pine Ksh. 320; G Hodd Ksh. 440; M Rae Ksh. 1,040.
3 January Cash sales paid direct into the bank Ksh. 740.
5 January Paid rent by cash Ksh. 340.
6 January We paid the following accounts by cheque, in each case deducting 2.5per cent cash discount: M Peters Ksh. 360; G Graham Ksh. 960; F Bell Ksh. 400.
8 January Withdrew cash from the bank for business use Ksh. 400.
10 January Cash sales Ksh. 1,260.
12 January B Age paid us their account of Ksh. 280 by cheque less Ksh. 4 cash discount.
14 January Paid wages by cash Ksh. 540.
16 January We paid the following accounts by cheque: R Todd Ksh. 310 less cash discount Ksh. 15; F Dury Ksh. 412 less cash discount Ksh. 12.
20 January Bought fixtures by cheque Ksh. 4,320.
24 January Bought lorry paying by cheque Ksh. 14,300.
29 January Received Ksh. 324 cheque from A Line.
30 January Cash sales Ksh. 980.
30 January Bought stationery paying by cash Ksh. 56.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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