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To. Hong Kong True Light College. PRINCIPLES OF ACCOUNTS. By Irene Lui. CASH. Hi! ^.^. BOOK. Introduction. Example. Exercise's Answer. Exercise. Cash Book Book of original entry for cash and bank receipts and payments. Discount Allowed A reduction given to customers - PowerPoint PPT Presentation
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The following is an example of a three-column cash book for the whole Of a month, showing the ultimate transfer of the totals of the discountColumns to the discount accounts.1995 $May 1 Cash balance brought down from April 29.00May 1 Bank balance brought down from April 654.00May 1 Debtors account : M. Sing 40.00 May 1 Creditors account: S. Long 100.00 May 8 We pay S. Long his account by cheque, deducting 5% cash discount $5. 95.00May25 We pay wages in cash. 92.00May28 M. Sing pays us in cash after having deducted 5% cash discount $2. 38.00
May1Bal.b/d 29 654 May8S.Long PL58 5 95
May11Bank C 100 May11Cash C 100
May25Wages GL77 92May28M.SingSL91 2 38
May31Bal.c/d 75 459
2 167 654 5 167 654
Jun1 Bal.b/d
Date Details Folio Discount Cash Bank Date Details Folio Discount Cash Bank1995 $ $ $ 1995 $ $ $
CASH BOOK
75 459
(page64)
Purchases Ledger (page 58)
Date Details Folio Total Date Details Folio Total1995 $ 1995 $
S.Long
May8 Bank CB64 95May8 Discount CB64 5
May1 Bal.b/d 100
100 100
Date Details Folio Total Date Details Folio Total1995 $ 1995 $
M.SingSales Ledger (page 91)
May1 Bal.b/d 40 May28 Cash 38May28 Discount 2
40 40
Date Details Folio Total Date Details Folio Total1995 $ 1995 $
WagesGeneral Ledger (page 77)
May25 Cash CB64 92
Date Details Folio Total Date Details Folio Total1995 $ 1995 $
Discount Received(page 88)
May31 Total for the month CB64 5
Date Details Folio Total Date Details Folio Total1995 $ 1995 $
Discount Received
May31 Total for the month CB64 2
Enter up a three-column cash book from the following details.Balance off at the end of the month, and show the discount as they wouldappear in the general ledger.1997May 1 Started business with $6000 in the bank.May 1 Bought fixtures paying by cheque $950.May 3 Cash sales $407.May 5 S. Man paid us his account of $220 by a cheque for $210, we allowed him $10 discount.May 7 Paid K. Tong $80 owing to him by means of a cheque $76, he allowed us $4 discount.May12 Paid rates by cheque $410.May16 Paid W. Man his account of $120 by cash $114, having deducted $6 cash discount.May20 T. Lee paid us a cheque for $78, having deducted $2 cash discount.May31 Cash sales paid direct into the bank $88.
Date Details Folio Discount Cash Bank Date Details Folio Discount Cash Bank$ $ $ $ $ $
May01 Capital GL17 6,000 May01 Fixtures GL18 950 May03 Sales GL19 407 May07 K.Tong PL15 4 76 May05 S.Man SL12 10 210 May12 Rates GL20 410 May20 T.Lee SL13 2 78 May16 W.Man PL16 6 114 May31 Sales GL19 88 May31 Balance c/d 293 4,940
12 407 6,376 10 407 6,376
Cash Book
Sales Ledger
(page 12)
Date Details Folio Total Date Details Folio Total
1997 $ 1997 $
May 01 Balance b/d 120 May 05 Bank CB33 210May 05 Discount CB33 10
220 220
S. Man
(page13)
Date Details Folio Total Date Details Folio Total$ 1997 $
Jun 19 Balance b/d 80 May 20 Bank CB33 78May 20 Discount CB33 2
80 80
T. Lee
(page16)
Date Details Folio Total Date Details Folio Total
1997 $ 1997 $
May 16 Bank CB33 114 May 01 Balance b/d 120May 16 Discount CB33 6
120 120
W .Man
Purchases Ledger
(page15)
Date Details Folio Total Date Details Folio Total
1997 $ 1997 $
May 07 Bank CB33 76 May 01 Balance b/d 80May 07 Discount CB33 4
80 80
K. Tong
General Ledger
(page 19)
Date Details Folio Total Date Details Folio Total$ 1997 $
May 03 Cash CB33 407May 31 Bank CB33 88
Sales
(page17)
Date Details Folio Total Date Details Folio Total$ 1997 $
May 01 Bank CB33 6000
Capital
(page 18)
Date Details Folio Total Date Details Folio Total
1997 $ $
May 01 Bank CB33 950
Fixtures
(page 20)
Date Details Folio Total Date Details Folio Total
1997 $ $
May 12 Bank CB33 410
Rates
C Irene Lui
