Write up a two-column cash book for a second hand bookshop from the following during the...

 

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Write up a two-column cash book for a second hand bookshop from the following during the month of November 2020. 1st 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 #194 5th Paid for postage stamps in cash $80 6th Bought office equipment by cheque $310 7th Paid L. Root by cheque #940 11th Withdrew $1,500 from the bank for business use 12th Paid wages in cash $400 13th Cash sales 430 14th Paid motor expenses by cheque #810 16th J. Bull lent us $1,500 in cash 20th K. Brown paid us by cheque 174 28th Paid general expenses in cash ¢350 30th Paid insurance by cheque #320 11 marks 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) Write up a two-column cash book for a second hand bookshop from the following during the month of November 2020. 1st 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 #194 5th Paid for postage stamps in cash $80 6th Bought office equipment by cheque $310 7th Paid L. Root by cheque #940 11th Withdrew $1,500 from the bank for business use 12th Paid wages in cash $400 13th Cash sales 430 14th Paid motor expenses by cheque #810 16th J. Bull lent us $1,500 in cash 20th K. Brown paid us by cheque 174 28th Paid general expenses in cash ¢350 30th Paid insurance by cheque #320 11 marks 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)

Answer rating: 100% (QA)

Cash Book for the month of November 2020 Date Particulars Cash Bank 1st BF 2950 4240 2nd Cash sales ... View the full answer