Writeupatwo-columncashbookforasecondhandbookshopfromthefollowingduring themonthofNovember2020. 1stBalancebroughtforwardfromlastmonth:cash¢2950;bank¢4,240 2ndCashsales¢3,100 3rdTook¢2,000outofthecashtillandpaiditintothebank 4thF.Bellpaidusbycheque¢194 5thPaidforpostagestampsincash¢80 6thBoughtofficeequipmentbycheque¢310 7thPaidL.Rootbycheque¢940 11thWithdrew¢1,500fromthebankforbusinessuse 12thPaidwagesincash¢400 13thCashsales¢430 14thPaidmotorexpensesbycheque¢810 16thJ.Bulllentus¢1,500incash 20thK.Brownpaidusbycheque¢174 28thPaidgeneralexpensesincash¢350 30thPaidinsurancebycheque¢320
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Writeupatwo-columncashbookforasecondhandbookshopfromthefollowingduring
themonthofNovember2020.
1stBalancebroughtforwardfromlastmonth:cash¢2950;bank¢4,240
2ndCashsales¢3,100
3rdTook¢2,000outofthecashtillandpaiditintothebank
4thF.Bellpaidusbycheque¢194
5thPaidforpostagestampsincash¢80
6thBoughtofficeequipmentbycheque¢310
7thPaidL.Rootbycheque¢940
11thWithdrew¢1,500fromthebankforbusinessuse
12thPaidwagesincash¢400
13thCashsales¢430
14thPaidmotorexpensesbycheque¢810
16thJ.Bulllentus¢1,500incash
20thK.Brownpaidusbycheque¢174
28thPaidgeneralexpensesincash¢350
30thPaidinsurancebycheque¢320
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