The following information represents the cash transactions of James for the month of September 2019.

Required:

1. Write up a three-column cash book for James based on the above given details and balanced-off. (16 marks)

2. Show the relevant discount accounts in the general ledger. (4 marks)

(c) Explain the definition of capital expenditure with example. (5 marks)

(show the answer in micorsoft word file)

+ 2019 September 1 Balances brought forward: Cash RM2.480: Bank RM28,568. 2 The following paid their accounts by cheque, in each case deducting 5 per cent cash discount: - Red RM1,040 - Parker RM1,280 4 Paid building expenses by cheque RM1.720 6 Fong lent us RM20.000 paying by cheque. 8 James paid the following accounts by cheque in each case deducting a 242 per cent cash discount: Gan RM3,840 - Lenny RM6.400 10 Paid electric bill in cash RM324. 12 Jack pays his account of RM360, by cheque RM352, deducting RM8 cash discount. 15 Paid salary in cash RM2.320 18 The following paid their accounts by cheque, in each case deducting 5 per cent cash discount: - Annie RM2.160 - Bee RM2,800 21 Cash withdrawn from the bank RM1.600 for business use. 24 Cash drawings RM800. 25 Paid Wan his account of RM640, by cash RM620, having deducted RM20 cash discount. 29 Bought furniture paying by cheque RM2.880 30 Received rent by cheque RM480