Worksheet-2 On cashbook, petty cash book and ledgers accounts (During MCO)

Q1. Write up a two-column cash book to record the following transactions. Then balance it off at the end of the
month.

2019 $
Jul 1 Cash balance b/d 3,250
Bank balance b/d 6,800
" 3 Cash sales made. 2,500
" 5 Cash banked. 1,200
" 7 James Chong paid us by cheque. 3,700
" 11 Bought office equipment by cheque. 1,880
" 12 Paid Linda Kee in cash. 50
" 13 Received a rates refund by cheque. 720
" 19 Withdrew cash from the bank for business use. 300
" 21 Paid wages in cash. 500
" 22 Paid for motor repairs by cheque. 1,250
" 23 Received a bank loan by cheque. 10,000
" 25 Karen Choi paid us in cash. 350
" 27 Paid sundry expenses in cash. 800
" 30 Paid insurance by cheque. 1,000

Answer:
Cash Book
Date Details Cash Bank Date Details Cash Bank
2019 $ $ 2019 $ $
Jul 1 Balances b/d 3,250 6,800 Jul 5 Bank 1,200
" 3 Sales 2,500 " 11 Office equipment 1,880
" 5 Cash 1,200 " 12 Linda Kee 50
" 7 James Chong 3,700 " 19 Cash 300
" 13 Rates – Refund 720 " 21 Wages 500
" 19 Bank 300 " 22 Motor expenses 1,250
" 23 Bank loan 10,000 " 27 Sundry expenses 800
" 25 Karen Choi 350 " 30 Insurance 1,000
" 31 Balances c/d 3,850 17,990
6,400 22,420 6,400 22,420
Aug 1 Balances b/d 3,850 17,990
Q2. Prepare a petty cash book with analysis columns for stationery, motor expenses, cleaning expenses, sundry
expenses and ledger account. The amount spent was reimbursed on 1 May 2019.(14 marks)

2019 $
Apr 1 Received $3,000 as the petty cash float.
" 5 Cleaning expenses 400
" 6 Postage stamps 46
" 11 Paper clips 125
" 16 Paid Brian Tse, a trade creditor. 350
" 20 Envelopes 40
" 23 Petrol 500
" 27 Delivery van repairs 1,100
" 29 Cleaning expenses 400

Answer:
Petty Cash Book
Motor Cleaning Sundry Ledger
Receipt Date Details Total Stationery
expenses expenses expenses account
$ 2019 $ $ $ $ $ $
3,000 Apr 1 Cash
" 5 Cleaning expenses 400 400
" 6 Postage stamps 46 46
" 11 Paper clips 125 125
" 16 Brian Tse 350 350
" 20 Envelopes 40 40
" 23 Petrol 500 500
" 27 Delivery van repairs 1,100 1,100
" 29 Cleaning expenses 400 400
2,961 165 1,600 800 46 350
" 30 Balance c/d 39
3,000 3,000
39 May 1 Balance b/d
2,961 " 1 Cash
Q3. Phoebe Shek keeps her petty cash book on the imprest system. The cash float is set at $1,500. On 1 December
2018, the balance of petty cash brought forward was $215. The amount spent in December 2018 was to be
reimbursed with cash at the end of the month. The following transactions took place during December 2018:

2018 $
Dec 1 Cash received to restore the imprest amount.
" 4 Postage stamps 20
" 5 MTR fares 150
" 9 Petrol for the motor car 300
" 10 Stationery 12
" 11 Bus fares 100
" 15 Refund to Winnie Poon, a trade debtor, who had overpaid. 18
" 17 Donation 300
" 18 Cleaning expenses 200
" 20 Settlement of Candy Li’s account in the accounts payable ledger. 78
" 22 Registered letter postage 23
" 26 Refund to Steven Wu, a trade debtor, who had overpaid. 22
" 28 Cleaning expenses 200
" 30 Envelopes 26
Required:
(a) Record the above transactions in a petty cash book with analysis columns for postage, travelling expenses,
cleaning, stationery, miscellaneous expenses and ledger account. (20 marks)
(b) Complete all necessary double entries for the month of December 2018 in the ledgers. (5 marks)
Answer:
(a)
Petty Cash Book
Travelling Miscellaneous Ledger
Receipt Date Details Total Postage expenses Cleaning Stationery expenses account 1
$ 2018 $ $ $ $ $ $ $
215 Dec 1 Balance b/d
1,285 " 1 Cash
" 4 Postage stamps 20 20
" 5 MTR fares 150 150
" 9 Petrol for the 300 300
motor car
" 10 Stationery 12 12
" 11 Bus fares 100 100
" 15 Winnie Poon 18 18
" 17 Donation 300 300
" 18 Cleaning 200 200
expenses
" 20 Candy Li 78 78
" 22 Registered 23 23
letter postage
" 26 Steven Wu 22 22
" 28 Cleaning 200 200
expenses
" 30 Envelopes 26 26
1,449 43 250 400 38 600 118
1,449 " 31 Cash
" 31 Balance c/d 1,500
2,949 2,949
2009
1,500 Jan 1 Balance b/d
(b)
Cash Book
Date Details Cash
2008 $
Dec 1 Petty cash 1,285 0.5
" 31 Petty cash 1,449 0.5

General ledger
Postage
2008 $
Dec 31 Petty cash 43 0.5

Travelling Expenses
2008 $
Dec 31 Petty cash 250 0.5

Cleaning
2008 $
Dec 31 Petty cash 400 0.5

Stationery
2008 $
Dec 31 Petty cash 38 0.5

Miscellaneous Expenses
2008 $
Dec 31 Petty cash 600 0.5

Accounts Receivable Ledger

Winnie Poon
2008 $
Dec 15 Petty cash 18 0.5

Steven Wu
2008 $
Dec 26 Petty cash 22 0.5

Accounts Payable Ledger

Candy Li
2008 $
Dec 20 Petty cash 78 0.5
Q4. Write up a two-column cash book to record the following transactions. Then balance it off at the end of the
month.

2018 $
Sept 1 Cash balance b/d 3,925
Bank balance b/d (Cr) 711
" 3 Bought goods by cheque. 1,200
" 5 Cash banked. 2,700
" 7 Clara Hong, a trade debtor, paid us in cash. 8,325
" 11 Bought furniture and fittings by cheque. 4,230
" 12 Paid Yuki Ma, a trade creditor, in cash. 113
" 13 Commission received by cheque. 1,620
" 19 Withdrew cash from the bank for business use. 675
" 21 Paid wages by cheque. 1,125
" 22 Paid for repairs by cheque. 2,813
Sept 23 Cash drawings by the proprietor. 225
" 25 Lucas Chan, a trade debtor, paid us in cash. 788
" 27 Bought stationery in cash. 1,800
" 30 The proprietor contributed further capital in cash. 2,250

Answer:
Cash Book
Date Details Cash Bank Date Details Cash Bank
2018 $ $ 2018 $ $
Sept 1 Balance b/d 3,925 Sept 1 Balance b/d 711
" 5 Cash 2,700 " 3 Purchases 1,200
" 7 Clara Hong 8,325 " 5 Bank 2,700
" 13 Commission revenue 1,620 " 11 Furniture and fittings 4,230
" 19 Bank 675 " 12 Yuki Ma 113
" 25 Lucas Chan 788 " 19 Cash 675
" 30 Capital 2,250 " 21 Wages 1,125
" 30 Balance c/d 6,434 " 22 Repairs 2,813
" 23 Drawings 225
" 27 Stationery 1,800
" 30 Balance c/d 11,125
15,963 10,754 15,963 10,754
Oct 1 Balance b/d 11,125 Oct 1 Balance b/d 6,434
Q5. Jacky Chan is a sole trader who keeps records of cash and bank transactions in a three-column cash book. The
cash book had the following opening balances as at 1 October 2019: cash $84,000 and bank $44,227. Jacky made the
following transactions in the month of October 2019:

2019
Oct 1 A cash sum of $30,000 was received from John Lui, a customer, in full
settlement of his account of $32,100.
" 3 Jacky paid $21,850 by cheque to Daisy Chung, a supplier, to settle the account.
The cheque amount was after the deduction of a cash discount of 5% received
from Daisy.
" 10 Paid wages of $12,300 by cheque.
" 14 Paid $3,220 in cash to setttle the account of Mickey Man, a supplier.
" 15 Made cash sales of $54,830.
" 18 Deposited $8,000 cash into the business bank.
" 19 Paid $32,900 by cheque for salaries.
" 26 Cash sales receipts of $13,300 were banked.
" 30 Received $40,000 cash from a customer in settlement of his account of $42,000.
Jacky banked the remaining sum after withholding $10,000 for private use.

Required:
(a) Prepare a three-column cash book to record the above transactions. (10 marks)
(b) Balance the cash book as at 31 October 2019. (3 marks)
(c) Add up the discount columns and post the totals to the correct ledger accounts in the general ledger.(2 marks)
Answer:
(a) and (b)
Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank 1
2019 $ $ $ 2019 $ $ $
Oct 1 Balances 84,000 44,227 Oct 3 Daisy Chung 1,150 21,850
b/d
" 1 John Lui 2,100 30,000 " 10 Wages 12,300
" 15 Sales 54,830 " 14 Mickey Man 3,220
" 18 Cash 8,000 " 18 Bank 8,000
" 26 Sales 13,300 " 19 Salaries 32,900
" 30 Trade 2,000 40,000 " 30 Bank 30,000
debtor
" 30 Cash 30,000 " 30 Drawings 10,000
" 31 Balances c/d 157,610 28,477
4,100 208,830 95,527 1,150 208,830 95,527
Nov 1 Balances 157,610 28,477
b/d

(c) General Ledger

Discounts Allowed
2019 $
Oct 31 Total for the month 4,100 1

Discounts Received
2019 $
Oct 31 Total for the month 1,150 1
Q6. Johnson, a sole trader, records all his cash and bank transactions in a three-column cash book. The transactions
for the month of December 2019 were as follows:

2019
Dec 1 Cash in hand $540; bank $6,520 Cr
" 7 Paid Andrew Au, a supplier, $450 by cheque in full settlement of the amount
owing of $500.
" 11 Received $920 cash from Fanny Lee, a customer, in full settlement of the
amount owing of $1,000.
" 13 Advised by Jim Yim, a customer, that he had paid $460 into Johnson’s bank
account in full settlement of the amount due from him of $480.
" 19 Paid rent of $700 by cheque.
" 23 Paid Judas Yam, a supplier, $330 in cash to settle an account of $340.
" 29 Paid salaries of $300 in cash.
" 31 Withdrew $200 from the bank for business use.

Required:
(a) Write up a three-column cash book to record the above transactions.
(b) Balance the cash book as at 31 December 2019.
(c) Add up the discount columns and post the totals to the correct ledger accounts in the general ledger.

Answer:
(a) and (b)
Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank
2019 $ $ $ 2019 $ $ $
Dec 1 Balance b/d 540 Dec 1 Balance b/d 6,520
" 11 Fanny Lee 80 920 " 7 Andrew Au 50 450
" 13 Jim Yim 20 460 " 19 Rent 700
" 31 Bank 200 " 23 Judas Yam 10 330
" 31 Balance c/d 7,410 " 29 Salaries 300
" 31 Cash 200
" 31 Balance c/d 1,030
100 1,660 7,870 60 1,660 7,870
2010 2010
Jan 1 Balance b/d 1,030 Jan 1 Balance b/d 7,410

(c)
General Ledger
Discounts Allowed
2019 $
Dec 31 Total for the month 100

Discounts Received
2019 $
Dec 31 Total for the month 60
Q7. Transactions involving the petty cash book of Minnie Nam's business for the month of May 2018 are as follows:

2018
May 1 Petty cash in hand $1,000.
" 2 Bought coffee and snacks totalling $334 for the office.
" 3 Paid wages of $340.
" 5 Paid $130 for postage.
" 9 Paid $158 for stationery.
" 10 Restored the imprest amount and increased the amount to $1,300.
" 18 Bought envelopes and writing paper for $50.
" 21 Paid $250 for office carpet cleaning.
" 28 Paid $300 for courier charge.
" 29 Paid $450 for newspapers and magazines.
" 30 Refunded $168 to Kim Chan, a trade debtor, for an overpayment on his account.
" 31 Restored the imprest amount to $1,300.

Required:
(a) Prepare the petty cash book for the month of May 2018 with analysis columns for wages, sundry expenses,
postage, stationery and ledger account and balance the petty cash book as at 31 May 2018.
(b) Complete all necessary double entries for the month in the ledgers.

Answer:
(a) and (b)
Petty Cash Book
Sundry Ledger
Receipt Date Details Total Wages expenses Postage Stationery account
$ 2008 $ $ $ $ $ $
1,000 May 1 Balance b/d
" 2 Coffee and snacks 334 334
" 3 Wages 340 340
" 5 Postage 130 130
" 9 Stationery 158 158
1,262 " 10 Cash
" 18 Envelopes and writing paper 50 50
" 21 Carpet cleaning 250 250
" 28 Courier charge 300 300
" 29 Newspapers and magazines 450 450
" 30 Kim Chan 168 168
2,180 340 1,034 430 208 168
1,218 " 31 Cash
" 31 Balance c/d 1,300
3,480 3,480
1,300 Jun 1 Balance b/d
 (c)
Cash Book
Date Details Cash Bank Date Details Cash Bank
2018 $ $ 2018 $ $
May 10 Petty cash 1,262
" 31 Petty cash 1,218

General Ledger

Wages
2018 $
May 31 Petty cash 340

Sundry Expenses
2018 $
May 31 Petty cash 1,034

Postage
2018 $
May 31 Petty cash 430

Stationery
2008 $
May 31 Petty cash 208

Accounts Receivable Ledger

Kim Chan
2018 $
May 30 Petty cash 168
Q8. Lucy Ip keeps her petty cash book on the imprest system. The imprest amount is $3,000. On
1 October 2019, petty cash in hand was $2,344. The following transactions took place during the month:
2019 $
Oct 1 Petty cash restored to the imprest amount
" 5 Postage stamps 50
" 6 Taxi fares 90
" 8 Petrol for the motor van 300
" 10 Ballpoint pens and paper 200
" 11 Bus fares 15
" 15 Refund to Jimmy Wong for an overpayment on his 87
account in the accounts receivable ledger
" 16 Stamps 100
" 18 Magazines 16
" 21 Motor van repairs 600
" 23 Envelopes 40
" 24 Petrol for the motor van 310
" 28 Courier charge 120
" 31 Cinema tickets for staff 280

Required:
(a) Record the above transactions in a petty cash book with analysis columns for postage, travelling, motor
expenses, stationery, sundry expenses and ledger account. Show the balance carried down to 1 November 2019
and the restoration of the cash float. (20 marks)
(b) Complete all necessary double entries for the month of October 2019 in the ledgers. (4 marks)

Answer:
(a)
Petty Cash Book
Travelling Motor Sundry Ledger
Receipt Date Details Total Postage expenses expenses Stationery expenses account 1
$ 2019 $ $ $ $ $ $ $
2,344 Oct 1 Balance b/d
656 " 1 Cash
" 5 Postage stamps 50 50
" 6 Taxi fares 90 90
" 8 Petrol for the motor van 300 300
" 10 Ballpoint pens and paper 200 200
" 11 Bus fares 15 15
" 15 Jimmy Wong 87 87
" 16 Stamps 100 100
" 18 Magazines 16 16
" 21 Motor van repairs 600 600
" 23 Envelopes 40 40
" 24 Petrol for the motor van 310 310
" 28 Courier charge 120 120
" 31 Cinema tickets for staff 280 280
2,208 270 105 1,210 240 296 87
Oct 31 Balance c/d 792
3,000 3,000
792 Nov 1 Balance b/d
2,208 " 1 Cash
(b)
Cash Book
Date Details Cash
2019 $
Oct 1 Petty cash 656
Nov 1 Petty cash 2,208

General Ledger
Postage
2019 $
Oct 31 Petty cash 270

Travelling Expenses
2019 $
Oct 31 Petty cash 105

Motor Expenses
2019 $
Oct 31 Petty cash 1,210

Stationery
2019 $
Oct 31 Petty cash 240

Sundry Expenses
2019 $
Oct 31 Petty cash 296

Accounts Receivable Ledger

Jimmy Wong
2019 $
Oct 15 Petty cash 87
Q9. Josephine Tam is a sole trader, selling office furniture on a credit basis. On 1 April 2019, she had $360,000 in
the bank. During the month of April 2009, Josephine Tam:
(i) Deposited the following sales proceeds into the bank account:
2019 $
Apr 6 Albert Co 33,000 (after deducting a 4% cash discount)
" 15 Billy Ltd 38,950 (after deducting a 5% cash discount)
" 22 Connie Store 36,660 (after deducting a 6% cash discount)
" 28 Dinnie Ltd 35,775

(ii) Issued the following cheques:

2019 $
Apr 1 Cash for business use 50,000
" 2 Baron Ltd 3,700
" 10 Drawings 50,000
" 18 Duke Lee 8,160 (after deducting a 4% cash discount)
19 Office equipment 30,000
20 Earl Co 65,900
22 Marquess Ltd 54,520 (after deducting a 6% cash discount)
25 Rent and rates 25,400
29 Viscount Co 58,880 (after deducting a 8% cash discount)

(iii) Made the following payments in cash:

2019 $
Apr 3 Salaries 15,500
" 7 Purchases 10,000
" 8 Electricity 3,000
" 15 Telephone expenses 540
" 21 Drawings 10,000

Required:
(a) Prepare the three-column cash book for Josephine Tam’s business for the month of April 2019. Then balance
off the cash book at the end of the month. (17 marks)
(b) Show the discount accounts in the general ledger. (2 marks)
Note: Transactions must be recorded in date order.
Answer:
(a)
Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank 1
2019 $ $ $ 2019 $ $ $
Apr 1 Balance b/d 360,000 Apr 1 Cash 50,000
" 1 Bank 50,000 " 2 Baron Ltd 3,700
" 6 Albert Co 1,375 33,000 " 3 Salaries 15,500
" 15 Billy Ltd 2,050 38,950 " 7 Purchases 10,000
" 22 Connie Store 2,340 36,660 " 8 Electricity 3,000

" 28 Dinnie Ltd 35,775 " 10 Drawings 50,000

" 15 Telephone 540
expenses
" 18 Duke Lee 340 8,160
" 19 Office 30,000
equipment
" 20 Earl Co 65,900
" 21 Drawings 10,000
" 22 Marquess Ltd 3,480 54,520
" 25 Rent and rates 25,400
" 29 Viscount Co 5,120 58,880
" 30 Balances c/d 10,960 157,825
5,765 50,000 504,385 8,940 50,000 504,385
May 1 Balances b/d 10,960 157,825

(b) General Ledger

Discounts Allowed
2019 $
Apr 30 Total for the month 5,765 1

Discounts Received
2019 $
Apr 30 Total for the month 8,940 1
Q10. Thomas Lo maintains a three-column cash book. In addition, a petty cash float of $1,000 is also kept for small
cash payments. The following transactions occurred in July 2019:

2019 $
Jul 1 Cash balance 9,850
Bank balance 12,240
Accounts receivable ledger: Besa Cheung 9,000
Kitty Cho 1,500
Accounts payable ledger: Lucia Koo 800
Diana Sit 2,000
" 1 Petty cash in hand was $234. A cheque was issued to restore the petty
cash float.
" 3 A cheque received from a trade debtor. 1,800
" 5 Bought office fixtures costing $40,000. A deposit of 30% was paid by
cheque, with the balance paid on delivery one month later.
" 7 Cash sales receipts 2,160
" 11 Cash banked. 4,500
" 12 Besa Cheung settled her account with us by cheque, after deducting a
3% cash discount.
" 13 Kitty Cho settled her account with us in cash, after deducting a 5%
cash discount.
" 19 Paid insurance by cheque. 1,800
" 21 Settled our account with Lucia Koo in cash, less a discount of $90.
" 22 Paid for electricity in cash. 2,250
" 22 Cash drawings by Thomas Lo. 300
" 23 Withdrew cash from the bank for business use. 1,440
" 25 Government rent refund by cheque. 1,300
" 27 Paid wages by cheque. 1,296
" 27 Paid rates in cash. 5,400
" 30 Settled our account with Diana Sit by cheque, less a 4% cash
discount.
" 30 All the cash was banked with the exception of $40 that was kept in
the cash box.

Required:
(a) Prepare the three-column cash book for the month of July 2019. Then balance off the cash book at the end of
the month. 17 marks)
(b) Show the discount accounts in the general ledger. (2 marks)
Answer:
(a)
Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank 1
2019 $ $ $ 2019 $ $ $
Jul 1 Balances b/d 9,850 12,240 Jul 1 Petty cash 766
" 3 Accounts 1,800 " 5 Office fixtures 12,000
receivable
" 7 Sales 2,160 " 11 Bank 4,500
" 11 Cash 4,500 " 19 Insurance 1,800
" 12 Besa Cheung 270 8,730 " 21 Lucia Koo 90 710
" 13 Kitty Cho 75 1,425 " 22 Electricity 2,250
" 23 Bank 1,440 " 22 Drawings 300
" 25 Government 1,300 " 23 Cash 1,440
rent — Refund
" 30 Cash 909 " 27 Wages 1,296
" 27 Rates 5,400
" 30 Diana Sit 80 1,920
" 30 Bank 909
" 31 Balances c/d 40 11,023
345 14,875 29,479 170 14,875 29,479
Aug 1 Balances b/d 40 11,023

(b) General Ledger

Discounts Allowed
2019 $
Jul 31 Total for the month 345 1

Discounts Received
2019 $
Jul 31 Total for the month 170 1