B E Question 1 P Picasso runs a picture framing business in Liverpool, UK and his clients include many of the finest artists in the UK. He records the bulk of his monthly transactions using a 3 column cash book and the following represent his transactions for September 2012: September 1 Bal b/twd cash 195, Bank 3250 overdrawn September 4 The following customers settle their accounts by cheque, in each case deducting 3% discount Kandinsky 3,400 Hockney Galleries Ltd 4,500 F Bacon 1,200 September S Picasso pays rent on premises of 1400 to Liverpool City Council September 6 Cash taking for the week of E900. All except E75 banked immediately September 7 withdraws E250 cash for personal use September 8 transfers 1,000 from bank to cash and pays staff wages of 750 cash . . September 11 Buys stock on credit from: Monet Timber Merchants 4,150 Munch & Sons Art Suppliers Ltd 1975 Van Gogh Partners 550 September 12 Paid outstanding account to Rodin & Associates 1,400 deducting 4% discount September 14 Cash taking for week 820 September 15 Staff wages 750 cash September 16 Picasso takes on commissions from new credit account dients Mondrian Galleries Europe 7500 Henry Moore 1900 September 17 Settles utility bill for previous 3 month period - 950 by cheque September 18 Whistler settles his account for 800 deducting 3% discount September 19 Buy additional stock paying by cheque immediately 150 . . - September 20 Hockney Galleries Ltd commissions new work for 2400 on usual credit terms September 23 Cash takings for week 1600 and wages paid E750 cash September 24 Cash withdrawals for personal use 200 September 25 Settle account to Munch & Sons, paying by cheque and deducting 4% discount September 27 Henry Moore setties account by cheque, deducting 3% discount . September 30 Cash taking for week E1450. Cash wages of 750 paid and the balance transferred to the bank account (a) Complete the three column cash book for Picasso, drawing down the opening balances for October 2012 and showing the entries in the general (nominal) ledger for the discounts. (20) Bank Bank 3250 Date escriptioiscount Cash 01-Sep 05-Sep rent 1400 Date escriptioiscount Cash 01-Sep 195 04-Sep J Kandinsky 102 Hockney 135 Fbacon 36 3298 4365 1164 7-21 Clare +
