CLASS EXERCISE

3. The following transactions need to be written up in a three-column cash book: 01 05 11 Debit balances brought forward: bank £6,000, cash £500. 03 05 11 Paid rent £900 (cheque). 05 05 11 Received the following cheques: Arun £300, Bruno £500 and Calvin £700. 06 05 11 Cash sales £2,200. 09 05 11 Paid wages £800 (cash). 10 05 11 Paid cheques to the following suppliers: Dune £200, Emirin £500 and Franco £600. 13 05 11 Bought equipment £8,000 (cheque). 20 05 11 Cash sales £3,800. 24 05 11 Paid £4,500 of the cash into the bank. 28 05 11 Paid wages £850 (cash). 29 05 11 Paid rent £900 (cheque). TASKS a) Write up the three-column cash book to record the above transactions. b) Update the discounts allowed and discounts received accounts.

4.

a)

The following are the first month¶s transactions of a new business: Feb. 01 Put £35,000 into a business bank account, and £1,000 into a business cash box. Feb. 01 Bought a vehicle for £9,000, paying by cheque. Feb. 04 Purchased goods costing £7,000 for resale, paying by cheque. Feb. 06 Paid rent £800, paying cash. Feb. 08 Paid insurance premium £1,500, paying by cheque. Feb. 13 Sold goods for £6,000, receiving a cheque for the full amount. Feb. 14 Paid wages £1,400, paying by cheque. Feb. 19 Purchased goods costing £7,500 for resale, paying by cheque. Feb. 23 Bought stationery costing £300, paying by cheque. Feb. 25 Sold goods for £6,000, receiving full payment in cash. Feb. 26 Paid wages £1,500, paying cash. Feb. 27 Sold goods for £4,200, receiving a cheque for the full amount. Feb. 28 Banked £2,500 of the cash. TASKS Write up the three-column cash book to record the above transactions. b) Update the discounts allowed and discounts received accounts.

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