ZIMSEC O Level Principles of Accounts Notes: The Cash Book:Entries into the Cash Book
- We will now look at the following example:
Write up a two-column cash book for a S Munodei’s Furniture Shop from the following details, and
balance it off as at the end of the month:
July 1 Started in business with capital in cash $1,000.
2 Paid rent by cash $230.
3 G Banda lent us $2,000, paid by cheque.
4 We paid J Dengu by cheque $860.
5 Cash sales $190.
7 F Rize paid us by cheque $34.
9 We paid A Muromo in cash $92.
11 Cash sales paid direct into the bank $151.
15 P Hove paid us in cash $96.
16 We took $100 out of the cash till and paid it into the bank account.
19 We repaid R Roro $500 by cheque.
22 Cash sales paid direct into the bank $122.
26 Paid motor expenses by cheque $75.
30 Withdrew $200 cash from the bank for business use.
31 Paid wages in cash $320.
|July 1||Capital||1000||July 2||Rent||230|
|3||G Banda: Loan||2000||4||J Dengu||860|
|11||Sales||151||19||R Roro: Loan||500|
|15||P Hove||96||26||Motor Expenses||75|
NB You are not being asked to draw up the other corresponding accounts so do not waste your time doing so.
To access more topics go to the Principles of Accounts Notes.