Question 5

a). Write up a two-column cash book for a second hand bookshop from the following during the month of November 2020.

1stBalance brought forward from last month: cash 2950; bank 4,240 2ndCash sales 3,100

3rdTook 2,000 out of the cash till and paid it into the bank

4thF. Bell paid us by cheque 194

5thPaid for postage stamps in cash 80

6thBought office equipment by cheque 310 7thPaid L. Root by cheque 940

11th12th13th14th16th20th28th30th

Withdrew 1,500 from the bank for business use Paid wages in cash 400

Cash sales 430

Paid motor expenses by cheque 810

J. Bull lent us 1,500 in cash

K. Brown paid us by cheque 174 Paid general expenses in cash 350 Paid insurance by cheque 320

11 marks

4|Page

b). The bank balance in the cash book and that of the bank statement may disgrace because of

informational and timing differences. Explain.

9 marks (Total 20 marks)

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Question 5 a). Write up a two-column cash book for a second hand bookshop from the following during the month of November 2020. lSt Balance brought forward from last month: cash 2950; bank 4,240 2nd Cash sales 3,100 3rd Took 2,000 out of the cash till and paid it into the bank 4th F. Bell paid us by cheque 53194 5th Paid for postage stamps in cash 80 6th Bought ofce equipment by cheque 3 10 7th Paid L. Root by cheque 523940 11th Withdrew 1,500 from the bank for business use l2,th Paid wages in cash 96400 13* Cash sales 430 14th Paid motor expenses by cheque 12810 16th J. Bull lent us 521,500 in cash 20\" K. Brown paid us by cheque 93174 28* Paid general expenses in cash 350 30th Paid insurance by cheque 320 11 marks 4|Page b). The bank balance in the cash book and that of the bank statement may disgrace because of informational and timing differences. Explain. 9 marks (Total 20 marks)