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:

 

a. Write up a two-column cash book for the month and bring the balance down?

b. Write up purchases and sales accounts and show totals?

c. Calculate the total expenses for the month?