Question

Section B (Bookkeeping Practice) - 8. Bolaji Enterprise started business on 1st June 2021 with #300,000 cash. Transactions in June 2021: June 2 - opened a bank account with #100,000; June 5 - purchased goods in cash for #80,000; June 6 - paid #4,000 cash for general expenses; June 6 - paid #5,000 cash for advertising; June 7 - purchased goods for cash #50,000; June 7 - sold goods for cash #50,000 (bank C 60,000 per source); June 9 - sold goods receiving cheque for #60,000; June 10 - purchased goods by cheque for #75,000; June 14 - cash sales #85,000; June 15 - cash sales #30,000; June 16 - paid #8,000 by cheque for wages; June 18 - paid #4,000 in cash for transport; June 28 - withdrew #1,000 cash from bank for office use; June 30 - paid #50,000 to the bank. Required: Prepare a Two Column Cash Book for the month of June 2021.

Accepted Answer

BOLAJI ENTERPRISE - Two Column Cash Book for the month of June 2021

Dr side (Receipts): 1 June - Capital: Cash #300,000; 2 June - Cash (contra, to bank): Bank #100,000; 7 June - Sales: Cash #50,000; 9 June - Sales: Bank #60,000; 14 June - Sales: Cash #85,000; 15 June - Sales: Cash #30,000; 28 June - Bank (contra, cash withdrawn from bank): Cash #1,000. Totals: Cash column #466,000; Bank column #210,000 (wait: see reconciled totals below).

Cr side (Payments): 5 June - Purchases: Cash #80,000; 6 June - General expenses: Cash #4,000; 6 June - Advertising: Cash #5,000; 10 June - Purchases: Bank #75,000; 16 June - Wages: Bank #8,000; 18 June - Transport: Cash #4,000; 28 June - Cash (contra, to cash): Bank #1,000; 30 June - Bank (contra, cash paid into bank): Cash #50,000; 30 June - Balance c/d: Cash #223,000; Bank #126,000. Totals: Cash column #466,000; Bank column #210,000.

1 July 2021: Balance b/d - Cash #223,000; Bank #126,000.

WAEC Book Keeping 2023 Theory — Question 13

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