[Get Solution]Cash Book

Question B2 You run a small business (Radstock snacks) and you keep the cash records in a 3-column cash book. Listed below are the transactions for January 2018. 2018 Jan-01 Cash in hand balance brought forward, £58. Jan-01  Bank overdraft brought forward, £1,470. Jan-02  You paid further capital into the bank, £1,000. Jan-03  Bought office fixtures by cheque, £780. Jan-04  Cash sales, £220. Jan-05  Banked cash, £200. Jan-06  You paid the following accounts by cheque, in each case deducting 2.5% cash discount: B. Barnes, £80; T. Horton, £240; T. Jacklin, £400. Jan-08 Cash sales, £500. Jan-12 Paid motor expenses in cash, £77. Jan-15  Cash withdrawn from bank, £400. Jan-16  Cash drawings, £120. Jan-18 The following firms paid you their accounts by cheque, in each case deducting a 5% discount: L. Graham, £80; B. Crenshaw, £140; H. Green, £220. Jan-20 Paid wages in cash, £210. Jan-22 T. Weiskopf paid you his account in cash, £204. Jan-26 Paid insurance by cheque, £150. Jan-28 You banked all the cash in your possession except for £20 in the cash till. Jan-31 Bought a van, paying by cheque, £4,920. Required: You are required to enter the following transactions into a cash book, balance it off at the end of the month and show the relevant discount accounts as they would appear in the general ledger.

 

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