Question 7
On 31st January, 2020, Loco Ventures revealed the following information of its business transactions.
N
January 1 Opened a bank account for the
business and paid in cash to
commence operations 50,000
5 Rented premises and paid for a month
by cheque 1,000
10 Bought furniture and fittings by cheque 2,000
12 Purchased goods by cheque 6,000
17 Cash sales 8,000
18 Paid cash into bank 6,000
25 Cash sales 7,500
26 Paid cash into bank 7,500
28 Paid Tammy and Sons by cheque 5,000
29 Paid salaries by cheque 700
31 Paid electricity bill for Mr Loco’s house
by cheque 900
31 Paid sundry expenses by cheque 400
You are required to prepare a two column cashbook
7.
LOCO VENTURES
TWO COLUMN CASHBOOK Cr Dr
DATE |
PARTICULARS |
FOLIO |
CASH |
BANK |
DATE |
PARTICULARS |
FOLIO |
CASH |
BANK |
Jan 1 Jan 17 Jan 18 Jan 25 Jan 26
Feb 1 |
Capital Sales Cash Sales Cash
Balance b/d |
C
C |
N
8,000
7,500 |
N
6,000
7,500 |
Jan 5 Jan 10 Jan 12 Jan 18 Jan 26 Jan 28 Jan 29 Jan 31 Jan 31 Jan 31 |
Rent Furniture & Fitting Bank Bank Tammy & Sons Drawings Sundry Expenses |
C C |
N
6,000 7,500
2,000 |
N 2,000 6,000
5,000 770 900 400 47,430 |
15,500 2,000 |
63,500 47, 430 |
15,500 |
63,500 |
Observation
Most of the candidates did attempt this question and they performed averagely because of inability to post contra entry.