EXERCISE 2–3

Erick Hardware and Computing Service provide computing service to its client while also selling
computing, electronic and some hardware to its customers. The business is register for VAT and deposit
cash received on daily basis. Given below are list of transactions for month of April:

CASH RECEIPTS
Date Transaction Details Receipt # Amount VIP
1–Apr Cash Services R50 $926.50
5–Apr Cash Sales CSD25 $1,090.00
6-–Apr Cash Received from Mark Brian for Commission R51 $610.40
10–Apr Cash Sales CSD26 $2,725.00
Cash Sales CSD27 $817.50
15–Apr Cash Services R52 $697.60
Cash Sales CSD58 $2,060.10
20–Apr Cash Received from R. Prasad For Rent Services R53 $654.00
25–Apr Cash Sales CSD29 $872.00
30–Apr Interest Received (VAT Not Applicable) B/S $150.00

CASH PAYMENT
Date Transaction Details Cheque # Amount VIP
2–Apr Purchased Inventory for Cash 601 $981.00
6–Apr Paid for Advertising 602 $218.00
8–Apr Brought Goods for Cash 603 $1,111.80
12–Apr Paid Wages 604 $2,020.00
Paid Utility Bills 605 $545.00
18–Apr Owner withdraw cash from business 606 $1,500.00
Paid Accounting fees 607 $327.00
20–Apr Bought equipment for cash 608 $13,080.00
25–Apr Paid for repairs and maintenance 609 $250.70
30–Apr Loan Repayment B/S $2,800.00
Account Keeping Fees B/S $30.00

Required:
1. Prepare Cash Receipts and Cash Payments Books for Month of April and Cross Balance.