FINANCIAL ACC 101 ~ EDU-MADE-EASY BLOG

QUESTIONS ON PREVIOUSLY TREATED TOPICS

Hey Everyone, How is this week so far. We are continuing this series we started last week, reviewing all the topics we have treated by answering questions linked to the Topics we have treated. This will help us further understand these topics and if possible be guru's at them. So Pls Enjoy...

QUESTION 2:

The following Transactions were extracted from the book of Mercy Land Trading Company as at 31st January 2005. All payments were made by cheque and all receipts were paid to the bank. The Company maintains a float of N 21, 000.

2nd Jan Cash at Eagle Bank 20, 000

2nd Jan Petty Cash in Hand 1, 400

3rd Jan Drew Cheque for Petty Cash 19, 600

5th Jan Received from Anthony, Cheque in Settlement of his debt N32, 600 less 1% discount

6th Jan Settled Tunde's Account of N 25, 900 less 10% discount

7th Jan Sold for cash 20MTN Cards at N750 per card

8th Jan Transferred to current account from deposit account 70, 000

10th Jan Paid Olu 4, 800

16th Jan Paid Cheque for Motor repairs 8, 000

17th Jan Paid Ade 3, 800

24th Jan Paid Kofi 4, 050

27th Jan Paid Kwame 4, 200

29th Jan Payments from petty cash during the Month were:

Salaries and Wages 8, 000

Trade Expenses 2, 000

Sundry Purchases 9, 200

You are required to prepare:

a. Two-Column Cash book (Showing Discounts and Bank Columns only) for the Month ended 31st Jan 2005.

b. Petty Cash book for the same period.

ANSWER:

DATE	DESCRIPTION	DISCOUNT ALLOWED	BANK
2-Jan	Bal B/f		20, 000
5-Jan	Anthony	3, 260	29, 340
7-Jan	Cash Sales		15, 000
8-Jan	Deposit A/c		70, 000




		3, 260	134, 340
	Bal B/d		66, 580

DATE	DESCRIPTION	DISCOUNT RECEIVED	BANK
3-Jan	Petty Cash		19, 600
6-Jan	Tunde	2, 590	23, 310
10-Jan	Olu		4, 800
16-Jan	Motor Repairs		8, 000
17-Jan	Ade		3, 800
24-Jan	Kofi		4, 050
27-Jan	Kwame		4, 200
31-Jan	Bal C/d		66, 580
		2, 590	134, 340

PETTY CASH BOOK FOR THE MONTH ENDED 31ST JAN 2005
AMOUNT	DATE	DESCRIPTION	TOTAL	SALARIES & WAGES	TRADE EXPENSES	SUNDRY PURCHASES
1, 400	2-Jan	Bal B/f
19, 600	3-Jan	Re-imburstment
	29-Jan	Salaries & Wages	8, 000	8, 000
	29-Jan	Trade Expenses	2, 000		2, 000
	29-Jan	Sundry Purchases	9, 200			9, 200
			19, 200	8, 000	2, 000	9, 200
19, 200	31-Jan	Re-imburstment
	31-Jan	Bal C/d	21, 000
40, 200			40, 200

NOTE: THE QUESTION IN THIS POST IS CREDITED TO WEST AFRICA EXAM COUNCIL 2007 PAPER. THE ANSWER IS ALSO CREDITED TO WAEC. THANKS

This brings us to the end of today's session. Hope this was very helpful to you, leave a comment of what you think of this tutorial and of your questions below. Have a Blessed Day and Remember You are Amazing. God Bless.