The following transactions have taken place: 1. A cheque paid to Watkins for 200. 2. The total of cash sales
The following transactions have taken place:
1. A cheque paid to Watkins for £200.
2. The total of cash sales for the day £1,730.
3. A payment by cheque to Smith for £200, less 5% cash discount.
4. £3,430 cash sales paid into the business bank account.
5. Payment of £435 cash to a supplier.
6. £2,000 cash withdrawn from the bank for business use.
Explain how each transaction should be treated in the cash book
We have seen how entries using the banking system are recorded in the cash book.
Cheques received are shown in the debit bank column of the cash book.
Cheques paid to suppliers of goods and services are shown in the credit bank columns of the cash book.
This problem has been solved!
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