On 1.1.2012 Hilda Stores had 650 in hand and 12,740 at the bank. The transactions on that
Question:
On 1.1.2012 Hilda Stores had £650 in hand and £12,740 at the bank. The transactions on that day were as follows:
(i) Paid £450 for advertising by cheque no 476.
(ii) Paid £13,800 to Peter Tell, a supplier, by cheque no 477, taking advantage of 8% cash discount on offer.
(iii) Received a cheque for £7,600 from Guy Thomas, a customer, who is entitled to 5% cash discount.
(iv) Cash sales £2,350.
(v) Paid £120 for staff tea.
(vi) Received a cheque for £6,175 from Jerry Wren, a customer, who is entitled to 5% cash discount.
(vii) Paid £5,850 by cheque no 478 to Peter Paul, to settle amount due to them, net of 10% cash discount.
(viii) Mike Saunter, to whom goods had been sold two days earlier for £7,500, returns the goods sold for £300, and settles his remaining balance in full, taking advantage of 5% cash discount on offer for prompt payment.
(ix) Deposited all amounts at bank leaving a cash float of £1,000.
Required:
Record these transactions in a three-column Cash Book and post them to the ledger accounts.
Step by Step Answer:
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict