Question

How to open cash book with these information

The following transactions recorded during the month of April 2018 of Soo Doo Sports Stores. 2018 April 2 3 8 11 14 Started in business with RM 55,500 cash Put RM11,000 of the cash into a bank account Bought goods for cash RM 3,550 Bought goods on credit from: T Dry RM 1,800: Black Hood RM 1,570, Arora Sports RM 1,130; G Low RM 730 Sold goods on credit to: Mr. Tong RM 170; L Smart RM 240; Mr. Singh RM 326, Ah Tom RM 204. Paid rent by cheque RM 1300 Paid salaries in cash RM 1790 Returned goods to: Black Hood RM 530; Arora Sports RM 335 Bought van by cheque RM 33,500 Received loan from SME Corporation by cheque RM 50,000 Cash sales RM 555 Sold goods on credit to: L Smart RM 130; Ah Tom RM 410; Mr. Raymond RM 1,158 We paid the following by cheque: Black Hood RM 1,040; Arora Sports RM 795 Received cheques from: Mr. Raymond RM 1,158 : L Smart RM 370 Received a further loan from SME Corporation by cash RM 5,000 Received RM 614 cash from Ah Tom 15 16 29 30

Answer 1

Solution
Please follow below treatment for each item in cash book
	Cash Book
Date	Receipt	Debit	Payment	Credit
1	Capital Account	55500			Treated as capital invested in business
2			Bank Account	11000	Deposited into bank
3			Purchase	3500	Purchased in cash
4					Ignore for cash book as the goods are purchased on credit
6					Ignore for cash book as the goods are sold on credit
8					No impact on cash book as paid by bank
11			Salaries	1790	Paid in cash
14					Ignore as the purchase was on credit
15					Ignore as purchased through bank payment
16					Ignore as received by cheque
21	Sale	555
24					Ignore for cash book as the goods are sold on credit
26					Ignore as paid through bank and not cash
29					Ignore cheque
30	Loan	5000			Received in cash
30	Debtor	614			Debts realised
		61669		16290
	Closing Balance			45379
		61669		61669
Note: Only cash transactions are considered. If bank book is required, we need to cover cheque transactions also