Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cash Book with Bank and Discount Columns Some business concerns make all receipts and payments only through bank. In such case the cash book consists
Cash Book with Bank and Discount Columns Some business concerns make all receipts and payments only through bank. In such case the cash book consists of only bank and discount columns. All receipts are shown in the Bank Column on the debit side and all payments are entered in the Bank Column on the credit side. In this case, if any amount is received in cash the same is deposited immediately in the bank. At the end of a particular period Bank Columns are balanced whereas, the discount columns are only totalled. Ilustration 9 Q12. A trader makes all receipts and payments through Bank. From the following transactions prepare an appropriate cash books. 2010 Jan 1 Balance at bank 3. 4.300 3 Received from Cash sales *4,200 4 Cash purchases * 3.500 5 Rent paid 3 500 7 Commission received * 200 8 Received from Macqbal 2,000 and discount allowed * 200 10 Received from customer Ramu 1,800 and discount allowed 100 11 Paid to Macshaw 1,800; discount earned 150 12 Cash sales 36,200 18 Paid for purchases 3,000 22 Personal drawings *1,000 27 Paid salary 1,800 350 30 Bank charges 31 3150 Interest credited on deposit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started