Theory question 104
Public Sector Accounting4. As at 31st December, 1995, the Cash Book balance of Isobo Sub-Treasury was as follows: (a) Cash N903,825 (b) Bank N2,100,000.
On 1/1/96, the following transactions were carried out in the sub-treasury:
Receipts (TRV)
1001 Cash from Mr. Mohammed N15,000
1002 Cheque from Mrs. Akpan N52,500
1003 Cash from Alhaji Bello N4,650
1004 Cash from Miss Ngozi N3,390
1005 Cheque from Mr. Abiola N225,000
1006 Cheque from Mr. Mfon N3,750
1007 Cash from Mr. Adisa N6,615
1008 Cheque from Mrs. Ibinabo N105,045
1009 Cheque by remittance N300,000
Payments (TPV)
2001 Cheque to Mr. Chukwu N450,000
2002 Cheque to Miss Bola N184,290
2003 Cheque to Mr. Udofia N22,650
2004 Cash to Mr. Olumoran N15,000
2005 Cash to Alhaji Hamza N10,575
2006 Cheque to Mrs. Ekanem N285,045
2007 Cheque to Miss Baregha N234,225
2008 Cash to Mr. Dogo N36,000
2009 Cheque to Mr. Edet N186,030
You are required to post the above transactions into the Main Cash Book, showing the new cash and bank balances.
Show the model answer
Main cash book (cash and bank columns), 1/1/96
Dr cash: balance b/f 903,825; TRV 1001 15,000; 1003 4,650; 1004 3,390; 1007 6,615 = 933,480.
Dr bank: balance b/f 2,100,000; TRV 1002 52,500; 1005 225,000; 1006 3,750; 1008 105,045; 1009 300,000 = 2,786,295.
Cr cash: TPV 2004 15,000; 2005 10,575; 2008 36,000 = 61,575; balance c/d 871,905.
Cr bank: TPV 2001 450,000; 2002 184,290; 2003 22,650; 2006 285,045; 2007 234,225; 2009 186,030 = 1,362,240; balance c/d 1,424,055.
New balances: cash 871,905; bank 1,424,055.
Receipt vouchers are debited and payment vouchers credited; cash items go in the cash column and cheques in the bank column.