Cash Book Practice

Uses of books original entry practice
1. Write up a two-column cash book to record the following transactions. Then balance
it off at the end of the month.
2009 $
Jul 1 Cash balance b/d 3,250
Bank balance b/d 6,800
" 3 Cash sales made. 2,500
" 5 Cash banked. 1,200
" 7 James Chong paid us by cheque. 3,700
" 11 Bought office equipment by cheque. 1,880
" 12 Paid Linda Kee in cash. 50
" 13 Received a rates refund by cheque. 720
" 19 Withdrew cash from the bank for business use. 300
" 21 Paid wages in cash. 500
" 22 Paid for motor repairs by cheque. 1,250
" 23 Received a bank loan by cheque. 10,000
" 25 Karen Choi paid us in cash. 350
" 27 Paid sundry expenses in cash. 800
" 30 Paid insurance by cheque. 1,000
2. Write up a two-column cash book to record the following transactions. Then balance
it off at the end of the month.
2008 $
Sept 1 Cash balance b/d 3,925
Bank balance b/d (Cr) 711
" 3 Bought goods by cheque. 1,200
" 7 Clara Hong, a trade debtor, paid us in cash. 8,325
" 11 Bought furniture and fittings by cheque. 4,230
" 12 Paid Yuki Ma, a trade creditor, in cash. 113
" 13 Commission received by cheque. 1,620
" 19 Withdrew cash from the bank for business use. 675
" 21 Paid wages by cheque. 1,125
" 22 Paid for repairs by cheque. 2,813
Sept 23 Cash drawings by the proprietor. 225
" 25 Lucas Chan, a trade debtor, paid us in cash. 788
" 27 Bought stationery in cash. 1,800
" 30 The proprietor contributed further capital in cash. 2,250
3. Jacky Chan is a sole trader who keeps records of cash and bank transactions in a
three-column cash book. The cash book had the following opening balances as at 1
October 2009: cash $84,000 and bank $44,227. Jacky made the following transactions in
the month of October 2009:
2009
Oct 1 A cash sum of $30,000 was received from John Lui, a customer, in full
settlement of his account of $32,100.
" 3 Jacky paid $21,850 by cheque to Daisy Chung, a supplier, to settle the account.
The cheque amount was after the deduction of a cash discount of 5% received
from Daisy.
" 10 Paid wages of $12,300 by cheque.
" 14 Paid $3,220 in cash to settle the account of Mickey Man, a supplier.
" 15 Made cash sales of $54,830.
" 18 Deposited $8,000 cash into the business bank.
" 19 Paid $32,900 by cheque for salaries.
" 26 Cash sales receipts of $13,300 were banked.
" 30 Received $40,000 cash from a customer in settlement of his account of $42,000.
Jacky banked the remaining sum after withholding $10,000 for private use.
Required:
(a) Prepare a three-column cash book to record the above transactions. (10 marks)
(b) Balance the cash book as at 31 October 2009. (3 marks)
4. Read the following given data:

2009 $
Jul 1 Cash balance 9,850
Bank balance 12,240
Accounts receivable ledger: Besa Cheung 9,000
Kitty Cho 1,500
Accounts payable ledger: Lucia Koo 800
Diana Sit 2,000
" 1 Petty cash in hand was $234. A cheque was issued to restore the petty
cash float.
" 3 A cheque received from a trade debtor. 1,800
" 5 Bought office fixtures costing $40,000. A deposit of 30% was paid by
cheque, with the balance paid on delivery one month later.
" 7 Cash sales receipts 2,160
" 12 Besa Cheung settled her account with us by cheque, after deducting a
3% cash discount.
" 13 Kitty Cho settled her account with us in cash, after deducting a 5%
cash discount.
" 19 Paid insurance by cheque. 1,800
" 21 Settled our account with Lucia Koo in cash, less a discount of $90.
" 22 Paid for electricity in cash. 2,250
" 22 Cash drawings by Thomas Lo. 300
" 23 Withdrew cash from the bank for business use. 1,440
" 25 Government rent refund by cheque. 1,300
" 27 Paid wages by cheque. 1,296
" 27 Paid rates in cash. 5,400
" 30 Settled our account with Diana Sit by cheque, less a 4% cash
discount.
" 30 All the cash was banked with the exception of $40 that was kept in
the cash box.
Required:
(a) Prepare the three-column cash book for the month of July 2009. Then balance off the cash book at the end of the
month. (17 marks)
(b) Show the discount accounts in the general ledger. (2 marks)

Cash Book Practice

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Uses of books original entry practice

4. Read the following given data:

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