Question

(b) Record the above transactions (c) Balance-off the accounts at the end of off the accounts at the end of the monthl. eptember the financial position of Sara Young's business was: 80 Cash in hand Balance at bank Accounts receivable: AB 900 200 500 300 1,000 600 1,400 Inventory Accounts payable: GH During September: 1 The three debtors settled their accounts by cheque subject to a cash discount of 4 per cent. 2 A cheque for £100 was cashed for office use. 3 The amount owing to GH was paid by cheque less 7.5 per cent cash discount. 4 U's account was settled, subject to a discount of 5 percent, by cheque. 5 Wages of £130 were paid in cash. column cash book and the accounts for the accounts receivable and accounts Required: (a) Open a three-column cash book and the accou payable at 1 September. (b) Record the above transactions for September in the area September in the accounts you opened in (a). 126

Answer 1

Answer (a)

Answer (b)

Disc allowed Three Column Cash Book Cash Bank Date 80 900 Particulars Disc received Cash In Euro Bank Date Particulars Sep-01 To Balance B/d L. Cheque encashed Accounts receivable AB CD 8 20 192 480 288 Accounts Payable GH 555 1,330 70 Cheque encashed 100 Wages Sep-30 Balance C/f 50 (125) 40 180 1,860 115 180 1,860

General ledger- Accounts receivable EF Date Particulars Bank Date Sep-01 To Balance B/d 300 In Euro Bank General ledger- Accounts receivable AB In Euro Date Particulars Dr Amount Date Particulars Cr Amount Sep-01 To Balance B/d 200 Bank 192 Discount Particulars In Euro Bank 1400 288 General ledger- Accounts payable -1 Date Particulars Bank Date Particulars Sep-01 To Balance B/d Bank 1330 Discount 70 Bank Discount 200 1400 1400 General ledger-Accounts receivable CD Date |Particulars Bank Date Particulars Bank Sep-01 To Balance B/d 500 Bank Discount General ledger- Accounts payable-GH Date Particulars Bank Date Particulars Sep-01 To Balance B/d Bank 555 Discount Bank 600 480 500 600