Question 5 a). Write up a two-column cash book for a second hand bookshop from the following during the month of November 2020. 1st Balance brought forward from last month: cash ¢2950; bank ¢4,240 2nd Cash sales ¢3,100 3rd Took ¢2,000 out of the cash till and paid it into the bank 4th F. Bell paid us by cheque ¢194 5th Paid for postage stamps in cash ¢80 6th Bought office equipment by cheque ¢310 7th Paid L. Root by cheque ¢940 11th Withdrew ¢1,500 from the bank for business use 12th Paid wages in cash ¢400 13th Cash sales ¢430 14th Paid motor expenses by cheque ¢810 16th J. Bull lent us ¢1,500 in cash 20th K. Brown paid us by cheque ¢174 28th Paid general expenses in cash ¢350 30th Paid insurance by cheque ¢320
Question 5
a). Write up a two-column
1st Balance brought forward from last month: cash ¢2950; bank ¢4,240
2nd Cash sales ¢3,100
3rd Took ¢2,000 out of the cash till and paid it into the bank
4th F. Bell paid us by cheque ¢194
5th Paid for postage stamps in cash ¢80
6th Bought office equipment by cheque ¢310
7th Paid L. Root by cheque ¢940
11th Withdrew ¢1,500 from the bank for business use
12th Paid wages in cash ¢400
13th Cash sales ¢430
14th Paid motor expenses by cheque ¢810
16th J. Bull lent us ¢1,500 in cash
20th K. Brown paid us by cheque ¢174
28th Paid general expenses in cash ¢350
30th Paid insurance by cheque ¢320
b). The bank balance in the cash book and that of the bank statement may disgrace because of
informational and timing differences. Explain.
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