Cambrige Notes: Entries into the Cash Book

• We have already looked at the Cash Book here
• We will now look at some typical transactions and the entries that will have to be made in the Cash Book the following example:

Write up a two-column cash book for a S Munodei’s Furniture Shop from the following details, and
balance it off as at the end of the month:

20X9
July 1 Started in business with capital in cash $1,000.
2 Paid rent by cash $230.
3 G Banda lent us $2,000, paid by cheque.
4 We paid J Dengu by cheque $860.
5 Cash sales $190.
7 F Rize paid us by cheque $34.
9 We paid A Muromo in cash $92.
11 Cash sales paid direct into the bank $151.
15 P Hove paid us in cash $96.
16 We took $100 out of the cash till and paid it into the bank account.
19 We repaid R Roro $500 by cheque.
22 Cash sales paid direct into the bank $122.
26 Paid motor expenses by cheque $75.
30 Withdrew $200 cash from the bank for business use.
31 Paid wages in cash $320.

Solution

NB You are not being asked to draw up the other corresponding accounts so do not waste your time doing so.

To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.