Question 3 Valerie Kho is a sole trader who records all her cash and bank transactions in a three-column Cash Book. On 1 August, her cash in hand was RM68 but she had a bank overdraft of RM1,692. The following are her transactions for the month of August: August 2 Received a cheque of RM160 from Patricia Mak in full settlement of a debt of RM168 10 Cash sales paid directly to bank RM2,086 12 Drew a cheque RM75 in favour of Winifred Engineering, in settlement of an outstanding debt 14 Paid RM35 cash for stationery 16 Paid Frederick Sung the sum of RM86 by cheque in settlement of an amount owed to him of RM90 18 Drew a cheque for office cash RM150 20 Cash sales RM1,120; cash kept in the office safe 21 Received interest of RM60 and paid this into the bank The sales of the previous day were also banked in 24 Paid telephone charges by cheque RM147 26 Received a cheque of RM704 from Benny Chan in settlement of his account amounting to RM720 28 Paid RM40 out of cash for office expenses 30 Paid RM254 to Larry Heng by cheque in full settlement of the RM270 balance on his account 30 The bank notified Valerie Kho that it had charged RM20 bank charges to her account (a) State three (3) purposes for preparing a Cash Book. (b) Define the two (2) types of cash discounts in the 3-column Cash Book and the purpose of a cash discount. (c) Draw up the 3-column Cash Book of Valerie Kho for the month of August. Balance up the cash and bank columns, bringing down the balances at 1 September.
Question 3
Valerie Kho is a sole trader who records all her cash and bank transactions in a three-column
The following are her transactions for the month of August:
|
August |
|
|
2 |
Received a cheque of RM160 from Patricia Mak in full settlement of a debt of RM168 |
|
10 |
Cash sales paid directly to bank RM2,086 |
|
12 |
Drew a cheque RM75 in favour of Winifred Engineering, in settlement of an outstanding debt |
|
14 |
Paid RM35 cash for stationery |
|
16 |
Paid Frederick Sung the sum of RM86 by cheque in settlement of an amount owed to him of RM90 |
|
18 |
Drew a cheque for office cash RM150 |
|
20 |
Cash sales RM1,120; cash kept in the office safe |
|
21 |
Received interest of RM60 and paid this into the bank The sales of the previous day were also banked in |
|
24 |
Paid telephone charges by cheque RM147 |
|
26 |
Received a cheque of RM704 from Benny Chan in settlement of his account amounting to RM720 |
|
28 |
Paid RM40 out of cash for office expenses |
|
30 |
Paid RM254 to Larry Heng by cheque in full settlement of the RM270 balance on his account |
|
30 |
The bank notified Valerie Kho that it had charged RM20 bank charges to her account |
(a) State three (3) purposes for preparing a Cash Book.
(b) Define the two (2) types of cash discounts in the 3-column Cash Book and the purpose of a cash discount.
(c) Draw up the 3-column Cash Book of Valerie Kho for the month of August. Balance up the cash and bank columns, bringing down the balances at 1 September.
(d) Total up the two discount columns and post the amounts to the relevant accounts in the General Ledger.
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