Tutorial : Cash Book

Rainbow Aces Trading buys and sells soft furnishings and office equipment. In August 2012, the following receipts and payments occurred:

2014

Aug 1

Balance as per cashbook: Bank RM1,950 and cash RM860

3

Purchases made by cash worth RM230

4

Received cheque for sales amounting to RM470

7

Paid electricity bill by cheque amounting to RM510

10

Sales by cheque worth RM380

11

Salaries paid amounting to RM250 by cheque

12

Cash sales received RM290

15

Travelling expenses worth RM40 paid by cash

16

Paid water bill of RM410 by cheque

19

Took out cash of RM150 for personal use

20

Stationery expenses by cash worth RM30

20

Purchases made by cheque amounting to RM320

23

Paid cash RM350 into bank

24

Deposited RM500 into cash for the business

25

Purchased computer for RM2,500 and paid by cheque

26

Received a cheque amounting to RM1,000 from John as a loan

26

Returned goods worth RM170 and received a cash refund

27

Paid insurance of RM280 in cash

29

Withdrew cash of RM180 from bank

30

Received a cheque from Netload Trading for RM350 after deducting RM10 cash discount

30

Received a cheque from Hudson for RM580 after deducting RM15 cash discount

30

Paid Chairs Enterprise a cheque for RM190 after deducting RM20 cash discount

30

Received a cheque from English Carpets worth RM100 after deducting RM70 cash discount. However, the cash discount was not allowed

30

Paid Cabin Trading cheque of RM500 on account

30

Paid Donald Sdn. Bhd. a cheque of RM500 after deduction of RM25 cash discount

Required:

I.Enter the above details in a three-column cashbook

Cash book Date Details Discount Cash Bank Date Details Discount Cash Bank 2014 2014 Aug-01 Balance b/d 860 1950 Aug-03 Purchases 230 Aug-04 Sales 170 Aug-07 Utilities 510 Aug-10 Sales 380 Aug-11 Salaries 250 Aug-12 Sales 290 Aug-15 Travelling exp 40 Aug-23 Cash 350 Aug-16 Utilities 410 Aug-24 Cash 500 Aug-19 Drawing 150 Aug-26 Loan - John 1,000 Aug-20 Stationery 30 Aug-26 Return outward 170 Aug-20 Purchases 320 Aug-29 Bank 180 Aug-23 bank 350 Aug-30 Netload Trading 10 350 Aug-24 bank 500 Aug-30 Hudson 15 580 Aug-25 Purchases 2,500 Aug-30 English carpet 170 Aug-27 Insurance 280 Aug-31 Balance c/d 610 Aug-29 Cash 180 Aug-30 Chair Ent 20 190 Aug-30 Cabin Trading 500 Aug-30 A/c payable - Donald 25 500 Aug-30 Balance c/d 320 25 2000 5860 45 2000 5860 Sep-01 Balance b/d 920 Sep-01 Balance b/d 610