REVISION OF FINANCIAL ACCOUNT 101 CONTD.

Hey Guys, It’s a New Day to learn and have fun. The Easter Period is really in the ear and I hope you all have great plans to enjoy this holiday season. Any way we have to finish our revision today on Financial Account 101 for us to fully grasp the foundation of Financial Accounting.

DOUBLE COLUMN CASH BOOK.

This is a cashbook that has folders for cash and bank transactions.

ILLUSTRATION:

Enter the following transactions in the cash book and ledger accounts of Mr. Timi for the year 2009.

Jul 1. Proprietor puts in capital into the bank account for the business N 1,500.

Jul2. Purchases on credit from S. Sharon N 260.

Jul 3. Cash Purchases N 350.

Jul 4. Paid cheque to S. Sharon N 245.

Jul 5. Paid rent by cash N 100.

Jul 6. Cash Sales N 150.

Jul 7. Cash Sales paid directly into the bank N 100.

Jul 8. Sales on credit to M. Brian N 120.

Jul 9. Received cheque from M. Brian N 100.

Jul 10. Banked N 140 of the cash held by the business N 140.

Jul 11. Paid wages in cash N 120.

Jul 12. Withdrew cash from bank for business use N 150.

Dr
Date	Particulars	F	Cash	Bank
1-Jul	Capital			1, 500
6-Jul	Sales		150
7-Jul	Cash			100
9-Jul	M. Brian			100
10-Jul	Cash	C		140
12-Jul	Bank	C	150
	Bal c/d		410
			710	1840
	Bal b/d			1445

				Cr
Date	Particulars	F	Cash	Bank
3-Jul	Purchases		350
4-Jul	S. Sharon			245
5-Jul	Rent		100
10-Jul	Bank	C	140
11-Jul	Wages		120
12-Jul	Cash	C		150
	Bal c/d			1445
			710	1840
	Bal b/d		410

Ledger Entries:
Dr	Capital A/C.						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
31/7	Bal c/d		1,500	1/7	Bank		1,500


Dr	Sales A/C						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
8/7	Credit Sales		120	6/7	Cash		150
31/7	Bal c/d		130	7/7	Bank		100
			250		Bal b/d		250
							130


Dr	B.Brian AC						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
31/7	Bal c/d		220	8/7	Credit Sales		120
				9/7	Bank		100

			220				220



Dr	PurchaseAC						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
3/7	Cash		350	2/7	Credit Purchases		260
					Bal c/d		90
31/7	Bal b/d		350				350
			90


Dr	S.SharonA/C						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
2/7	Credit Purchases		260	31/7	Bal c/d		505
6/7	Bank		245

			505				505


Dr	Rent A/c						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
5/7	Cash		100	31/7	Bal c/d		100





Dr	WagesA/C						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
11/7	Cash		120	31/7	Bal c/d		120

THREE COLUMN CASHBOOK.

This is a cashbook that contains Cash, Bank & Discount Allowed on the Debit Side, while the Credit Side consists of Cash, Bank & Discount Received Folders.

ILLUSTRATION:

Enter the following in the Cashbook of Mr. Darwin Nig. Ltd for the year 2005.

Feb 1- balance of cash in hand N 10,000, at bank N 13,000.

Feb 2- Cash sales N 30,000 and withdrew N 7,000 cash from the bank for office use.

Feb 3- Paid Cassie by Cheque N 8,000 and received a discount of N 500.

Feb 4- bought goods by cheque N 3,000.

Feb 5- sold goods for cash N 16,000.

Feb 6- received cheque from Isaiah N 3,000 in full settlement of N 4,000.

Feb 7- paid N 9,000 to bank.

Feb 8- received cheque from Lucas N 16,000 in his account.

Feb 9- paid Mandy with cheque of N 15,000 in full settlement of her account of N 16,500.

Feb 10- received cheque from Molly in settlement of her account of N 30,000 after deducting cash discount of 5%.

Dr
Date	Particulars	F	D. Allowed	Cash	Bank
1st	Bal			10,000	13,000
2nd	Sales			30,000
2nd	Bank	C		7,000
5th	Sales			16,000
6th	Isaiah		1,000		3,000
7th	Cash			9,000
8th	Lucas			16,000
10th	Molly		1,500	28,500
	Bal c/d				17,000

			2,500	116,500	33,000
27th	Bal b/d			107,500

					Cr
Date	Particulars	F	D. Received	Cash	Bank
2nd	Cash	C			7,000
3rd	Cassie		500		8,000
4th	Purchases				3,000
7th	Bank	C		9,000
9th	Mandy		1,500		15,000



				107,500

			2,000	116,500	33,000
27th	Bal b/d				17,000

Ledger Entries:






Dr	D. Received A/c						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
				Feb 27th	Total		2,000




Dr	D. Allowed A/c						Cr
Date	Particulars	F	Amount	Date	Particulars	F	Amount
Feb 27th	Total		2,500