Answered: Write up a two-column cash book for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Write up a two-column cash book for a second hand bookshop from the following during
the month of November 2020.
1
st Balance brought forward from last month: cash ¢2950; bank ¢4,240
2
nd
Cash sales ¢3,100
3
rd
Took ¢2,000 out of the cash till and paid it into the bank
4
th
F. Bell paid us by cheque ¢194
5
th
Paid for postage stamps in cash ¢80
6
th Bought office equipment by cheque ¢310
7
th 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

Write up a two-column cash book for a second hand bookshop from the following during
а).
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
11 marks

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions