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 discount Columns to the discount accounts. 1995 $ May 1 Cash balance brought down from April 29.00 May 1 Bank balance brought down from April 654.00 May 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. 95.00 May25 We pay wages in cash. 92.00 May28 M. Sing pays us in cash after having deducted 5% cash discount $2. 38.00

(page64)

Date 1995

Details

CASH BOOK Folio Discount Cash Bank Date Details $ $ $ 1995

C
2

Folio Discount Cash Bank $ $ $

5 95

May1 Bal.b/d

29 654 May8 S.Long PL58

May11Bank

100
38

May11Cash

C
92

100

May28 M.Sing SL91

May25 Wages GL77 May31Bal.c/d

75 459 5 167 654

2 Jun1 Bal.b/d

167 654 75 459

Purchases Ledger
Date 1995 Details Folio S.Long Total Date $ 1995 Details Folio

(page 58)
Total $

May8 Bank May8 Discount

CB64 CB64

95 May1 Bal.b/d 5 100

100

100

Sales Ledger
Date 1995 Details Folio M.Sing Total Date $ 1995 Details Folio

(page 91)
Total $

May1 Bal.b/d

40 May28 Cash May28 Discount 40

38 2 40

General Ledger
Date 1995 Details Folio Wages Total Date $ 1995 Details Folio

(page 77)
Total $

May25 Cash

CB64

92

(page 88)
Date 1995 Details Folio Total $ Discount Received Date Details 1995 Folio Total $

May31 Total for the month CB64

Discount Received Folio Total $

Date 1995

Details

Date 1995

Details Folio

Total $

May31 Total for the month CB64

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 would appear in the general ledger. 1997 May 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 May01 May03 May05 May20 May31

Details Capital Sales S.Man T.Lee Sales

Folio GL17 GL19 SL12 SL13 GL19

Discount $

10 2 12

Cash Book Cash Bank Date $ $ 6,000 May01 407 May07 210 May12 78 May16 88 May31 407 6,376

Details

Folio

Fixtures GL18 K.Tong PL15 Rates GL20 W.Man PL16 Balance c/d

Discount Cash Bank $ $ $ 950 4 76 410 6 114 293 4,940 10 407 6,376

Sales Ledger (page 12) Date 1997 May 01 Details Folio S. Man Total Date $ 1997 120 May 05 May 05 220 Details Folio Total $ 210 10 220

Balance b/d

Bank CB33 Discount CB33

(page13) Date Jun 19 Details Folio T. Lee Total Date $ 1997 80 May 20 May 20 80 Details Folio Total $ 78 2 80

Balance b/d

Bank CB33 Discount CB33

Purchases Ledger (page15) Date Details Folio K. Tong Total Date Details Folio $ 1997 76 May 01 Balance b/d 4 80 Total $ 80 80

1997 May 07 Bank CB33 May 07 Discount CB33

(page16) Date Details Folio W .Man Total Date Details Folio $ 1997 114 May 01 Balance b/d 6 120 Total $ 120 120

1997 May 16 Bank CB33 May 16 Discount CB33

General Ledger (page 19) Date Details Folio Total $ Sales Date Details Folio CB33 CB33 Total $ 407 88

1997 May 03 Cash May 31 Bank

(page17) Date Details Folio Capital Total Date Details $ 1997 May 01 Bank Folio CB33 Total $ 6000

(page 18) Date Details Folio CB33 Fixtures Total Date $ 950 Details Folio Total $

1997 May 01 Bank

(page 20) Date Details Folio CB33 Total $ Rates Date 410 Details Folio Total $

1997 May 12 Bank

C Irene Lui