Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The Cash Book: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:
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.
|July 1||Capital||1000||July 2||Rent||230|
|3||G Banda: Loan||2000||4||J Dengu||860|
|11||Sales||151||19||R Roro: Loan||500|
|15||P Hove||96||26||Motor Expenses||75|
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.