Theory question 105
Cash BookThe following information was extracted from the books of Osula Enterprises:
June 1: Cash balance brought forward ₦40,000.
June 2: Bank balance brought forward ₦112,000.
June 3: Paid rent by cash ₦20,000.
June 4: Received loan from Osaro ₦10,000 by cheque.
June 5: Paid general expenses in cash ₦600.
June 6: Bought goods by cheque ₦60,000.
June 7: Deposited cash at bank ₦30,000.
June 8: Sold goods ₦185,000 for cash.
June 9: Sold goods and received cheque ₦194,000.
June 10: Bought goods from Ali ₦82,000 on credit.
June 11: Commission received by cheque ₦520.
June 12: Bought stationery by cash ₦150.
June 13: Sold goods ₦200,000 for cash.
June 14: Withdrew cash from bank ₦43,000.
June 15: Sold goods and paid proceeds to bank ₦200,000.
June 16: Bought motor van by cheque ₦60,000.
June 18: Paid Odion for goods bought ₦5,000 by cash.
June 20: Paid part of Osaro's loan ₦5,000 by cash.
June 23: Withdrew cash from the bank ₦48,500.
June 25: Paid James for goods bought ₦25,000; ₦20,000 in cash; ₦5,000 by cheque.
June 28: Paid wages in cash ₦75,000.
June 29: Rent received by cash ₦2,500.
June 30: Cash sales ₦120,000.
You are required to write up a two-column cash book for the month.
Show the model answer
Two-column cash book (Cash / Bank), June:
Dr: Jun 1 balance b/f cash 40,000; Jun 2 balance b/f bank 112,000; Jun 4 loan – Osaro bank 10,000; Jun 7 cash (C) bank 30,000; Jun 8 sales cash 185,000; Jun 9 sales bank 194,000; Jun 11 commission bank 520; Jun 13 sales cash 200,000; Jun 14 bank (C) cash 43,000; Jun 15 sales bank 200,000; Jun 23 bank (C) cash 48,500; Jun 29 rent received cash 2,500; Jun 30 sales cash 120,000
Cr: Jun 3 rent cash 20,000; Jun 5 general expenses cash 600; Jun 6 purchases bank 60,000; Jun 7 bank (C) cash 30,000; Jun 12 stationery cash 150; Jun 14 cash (C) bank 43,000; Jun 16 motor van bank 60,000; Jun 18 Odion cash 5,000; Jun 20 Osaro loan cash 5,000; Jun 23 cash (C) bank 48,500; Jun 25 James cash 20,000, bank 5,000; Jun 28 wages cash 75,000
Totals: cash ₦639,000; bank ₦546,520
Balances c/d 30 June (b/d 1 July): cash ₦483,250; bank ₦330,020
June 10 (credit purchase from Ali) is not entered in the cash book.
Contra entries (cash paid into or drawn from the bank) appear on both sides; credit purchases are left out.