Question

On 1st January 2013, Chui has Sh. 35,000 in cash and a bank overdraft Sh. 12,00. During the month, the following transaction took place:

Jan 2 Sold goods for Sh. 8,000 cash.
Jan 5 Received a cheque for Sh. 40,000 from Mwirigi Enterprises
Jan 8 Paid Sh. 6,000 cash to Bundi.
Jan 10 Deposited Sh. 13,000 into the bank from cash till
Jan 14 Withdrew Sh. 5,000 from bank for personal use.
Jan 15 Paid wages Sh. 4,000 in cash.
Jan 18 Received Sh. 25,000 cash from Kazure.
Jan 24 Cash sales paid directly into the bank Sh. 45,000
Jan 26 Paid wages Sh. 2,400 in cash
Jan 27 Withdrew Sh. 21,000 from bank for business use
Jan 28 Bought furniture Sh. 19,000 in cash.
Jan 29 Paid insurance Sh. 17,000 by cheque.
Jan 30 Deposited all the cash into the bank leaving a balance of only Sh.3,000

Prepare a two-column cashbook and balance it off.

Answer 1

Dr	Two-column Cash Book						Cr
Date	Particulars	Cash	Bank	Date	Particulars	Cash	Bank
20 -8		Sh	Sh	20-8		Sh	Sh
Jan 1	Balance b/d	35,000		Jan 1	Balance b/d		12,000
Jan 2	Sales	18,000		Jan 8	Bundi	6,000
Jan 5	Mwirigi Entr		40,000	Jan 10	Bank	13,000
				Jan 14	Drawings		5,000
Jan 10	Cash		13,000	Jan 15	Wages	4,000
				Jan 26	Wages	2,400
Jan 18	Kazure	25,000		Jan 27	Cash		21,000
				Jan 28	Furniture	19,000
Jan 24	Sales		45,000	Jan 29	Insurance		17,000
Jan 27	Bank	21,000		Jan 30	Bank	51,600
				Jan 31	Bal c/d	3,000	94,600
Jan 29	Cash		51,600
		99,000	149,600			99,000	149,600