No. 1(a): Preparation of Cash Book for the month of 31st March 2018. Workings: 1. 26th March 2018 the total of the cheque to Jeff’s Air-Con: Cheque will equal $7,500 less a 5% discount. The discount equals 5% x $7500 = $375. Therefore the cheque total equals = $7,500 - $375 = $7,125. 2. 30th March 2018 the total of the cheque received from Layby Stores: Invoice total on the 13th March sent to Layby Stores equals $2,250 less 20% trade discount. The discount equals 20% x $2,250 = $450. Therefore the invoice total equals = $1,800. 19th March 2018 the total of the credit note sent to Layby Stores equals $200 less 20% trade discount. The discount equals 20% x $200 = $40. Therefore the credit note total equals $200 - $40 = $160. This means that the total on Layby Store’s account on the 30th March 2018 = $1800 - $160 = $1640. Layby Stores was given a cash discount of $150 therefore the cheque received from Layby will equal $1640 - $150 = $1,490. Now that the workings has been completed the Cash Book for the month ended 31st March, 2018 can be prepared.
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No. 2(a): Below is the completed table showing the book of original entry for each of the source information given:
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AuthorThe author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor. Archives
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