![Overdraft receipt. Note an overdraft is an asset to the bank. Image credit consumerist.com](https://i0.wp.com/revision.co.zw/wp-content/uploads/2016/03/overdraft_receipt-min.jpg?resize=600%2C334&ssl=1)
Overdraft receipt. Note an overdraft is an asset to the bank. Image credit consumerist.com
Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The Cash Book: Bank Overdraft example
- Consider the following entries and enter into the books of J Mativure
- You are only required to write up the Cash Book
The Following transactions took place in the month of July 20×7
1 Started the business with $5 000 Cash
3 Deposited $1200 into the Bank
4 Made Purchases of $600 and paid by Cheque
12 Made Cash Sales of $400
15 Sold goods on credit to J Musoro $300
22 Received Cheque from J Musoro $280 in full settlement of his account
30 Paid wages $1800 by cheque
NB No other transactions took place during the year
Solution
Cash Book | |||||||
Details | Discount Allowed | Cash | Bank | Details | Discount Received | Cash | Bank |
$ | $ | $ | $ | ||||
Capital | 5000 | Bank | 1200 | ||||
Cash | 1200 | Purchases | 600 | ||||
Sales | 400 | Wages | 1800 | ||||
J Chimusoro | 20 | 280 | Balance c/d | 4200 | |||
Balance c/d | 920 | ||||||
20 | 5400 | 2400 | - | 5400 | 2400 |
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.