ABFA1153 FINANCIAL ACCOUNTING 1 1 June 2021

Tutorial 3 – The Cash Cycle

General Ledger
Section 3: Extra exercise questions
Sales Account
Question 1 RM Mar RM
Cash Book 3 Bank 620
Date Particular Fol Disc. Cash Bank Date Particular Fol Disc. Cash Bank 9 Bank 530
12 Cash 440
Allw Rec’d
Mar RM RM RM Mar RM RM RM
Purchases Account
1 Bal b/d 1,010 2,100 4 Purchases 380 Mar RM RM
3 Sales 620 6 Electricity 660 4 Cash 380
9 Sales 530 10 Wages 400 20 Bank 470
12 Sales 440 15 Travelling 190
Electricity Account
22 Cash √ 450 16 Water 560
Mar RM RM
24 Capital 650 6 Bank 660
26 Loan:Mina 3,500 19 Drawings 300
29 Bank √ 330 20 Purchases 470 Wages Account
30 T.R.: Ken 25 475 21 Postage 30 Mar RM RM
10 Bank 400
30 T.R.: Don 38 722 22 Bank √ 450
Motor
31 T.R.:Joyce 1,254 25
vehicles
4,000 Travelling Account
Road tax Mar RM RM
28 & 430 15 Cash 190
insurance
29 Cash √ 330 Water Account
Mar RM RM
31 T.P.: Sam 35 665
16 Bank 560
31 T.P.:Grace 18 342
31 Bal c/d 300 2,574 Drawings Account
63 1,780 10,301 53 1,780 10,301 Mar RM RM
19 Bank 300
Apr
1 Bal b/d 300 2,574
Postage Account
Mar RM RM
21 Cash 30
ABFA1153 FINANCIAL ACCOUNTING 1 2 June 2021

Capital Account Sales Ledger

RM Mar RM
24 Bank 650 Trade Receivables: Ken Account
RM Mar RM
Motor Vehicles Account 30 Bank 475
Mar RM RM 30 Discount allowed 25
25 Bank 4,000
Trade Receivables: Don Account
Loan: Mina Account RM Mar RM
RM Mar RM 30 Bank 722
26 Bank 3,500 30 Discount allowed 38

Road Tax and Insurance Account Trade Receivables: Joyce Account

Mar RM RM RM Mar RM
28 Cash 430 31 Bank 1,254

Closing the Cash Book Purchases Ledger

Trade Receivables Control Account Trade Payables: Sam Account

RM Mar RM Mar RM RM
31 Bank 2,451 31 Bank 665
31 Discount Allowed 63 31 Discount received 35

Discount Allowed Account Trade Payables: Grace Account

Mar RM RM Mar RM RM
31 Trade Receivables 63 31 Bank 342
31 Discount received 18
Trade Payables Control Account
Mar RM RM
31 Bank 1,007
31 Discount Received 53

Discount Received Account

RM Mar RM
31 Trade Payables 53
ABFA1153 FINANCIAL ACCOUNTING 1 3 June 2021

Question 2 Cash Book

Date Particular Fol Disc. Cash Bank Date Particular Fol Disc. Cash Bank
(a) The three (3) purposes for preparing a Cash Book are: Allw Rec’d
 It is used to record cash and cheque transactions Aug RM RM RM Aug RM RM RM
 It is one of the books of prime entry used for recording transactions 1 Bal b/d 68 1 Bal b/d 1,692
from source documents T.R.:Patricia T.P.:Winifred
 It also functions as the General Ledger accounts for “Cash Account” 2
Mak
8 160 12
Engineering
75
and “Bank Account” 10 Sales 2,086 14 Stationery 35
T.P.:Frederick
(b) The two (2) types of cash discounts in the 3-column Cash Book are: 18 Bank √ 150 16 4 86
Sung
 Discount allowed are cash discounts given to customers 20 Sales 1,120 18 Cash √ 150
 Discount received are cash discounts received from suppliers 21 Interest 60 21 Bank √ 1,120
21 Cash √ 1,120 24 Telephone 147
The purpose of a cash discount is: T.R.: Benny Office
 To encourage early payment within the specified period e.g. 5% 26
Chan
16 704 28
expenses
40
cash discount for payment within 15 days T.P.: Larry
30 16 254
Heng
30 Bank charges 20
143 1,706
24 1,338 4,130 20 1,338 4,130
Sep
1 Bal b/d 143 1,706

General Ledger

Discount Allowed Account

Aug RM RM
31 Trade Receivables 24

Discount Received Account

RM Aug RM
31 Trade Payables 20