A. McKenzie runs a shop. The records she keeps are of cash received and paid plus cheques received. Her bank statement and cheque counterfoils act as her bank record. All cheques received are banked immediately.

During May 2007 McKenzie did not sell or buy anything on credit. The following information for May 2007 is also available:

$

May 1 Cash in till brought forward 160

May 8 Sales for week:

Cheques 975

Cash 206

Banked all cash except for $200.

May 15 Sales for week:

Cheques 547

Cash 896

Banked all cash except for $300 kept as cash balance.

May 31 Sales for remainder of month:

Cheques 2,590

Cash 1,724

Bought office equipment for cash 500

Paid insurance by cash 600

Banked all cash except for float of 300

On May 1, 2007 both the bank statement and the cash book showed a balance of $3,725. Cheques drawn for the month were as follows.

Cheque No. $

164 May 7 J. Jackson for stock 647

165 May 12 Rent for business premises 900

166 May 16 Repairs to office equipment 166

167 May 21 Cheque for private use 220

168 May 27 T. Towers for stock 724

169 May 31 Motor running expenses 307

YOU ARE TO:

Write up a two-column cash book for the month and bring the balance down (15 marks)

Write up purchases and sales accounts and show totals (5 marks)

Calculate the total expenses for the month (5 marks)