On 31 December 2009 the bank columns of K Talbot's cash book showed a balance of £4.500. The bank statement as at 31 December 2009 showed a credit balance of £8.850 on the account. You checked the bank statement with the cash book and found that the follow- ing had not been entered in the cash book: (i) A standing order to RB Insurance for £600 had been paid by the bank. (ii) Bank interest receivable of £720 had not been entered into the account. (iii) Bank charges of £90 had been made. ✔ S (iv) A credit transfer of £80 from KB Ltd had been paid direct into the account. (v) Talbot's deposit account balance of £4,200 had been transferred into her bank current account. (vi) A returned cheque of £210, dishonoured by C Hill. had been entered on the bank statement. You also found that two cheques. payable to L Young £750 and K Clark £870. had been entered in the cash book but had not been presented for payment. In addition, a cheque for £2.070 had been paid into the bank on 31 December 2009 but had not been credited on the bank statement until 2 January 2010. Required: (a) Starting with the cash book debit balance of £4,500, write the cash book up to date. pt 2 on 31 December 2009.​



Answer :

The cash book is given below.

                                  Cash Book (Bank Column)      

Particular         Bank Column   Particular                   Bank Column

To Balance B/d  45000           By Bank Charges                900

To Interest            7200           By Insurance Charges      6000

To KB ltd                    7800           By C's A/c                       2100

To Capital          42000           By Balance C/d            93000

                        102000                                              102000

A cash book is an economic magazine that includes all cash receipts and disbursements, together with financial institution deposits and withdrawals. Entries in the cash e-book are then posted into the general ledger.

The debit aspect is at the left-hand aspect of a cash book. It's far from where you document all of your enterprise's coins receipts. each time your business receives cash, you document it on the debit side. The credit aspect is on the proper-hand side of a cash e-book.

Cash book is an ebook of authentic access in which transactions bearing on most effective coins receipts and bills are recorded in element. Whilst coins are received it is entered on the debit or left-hand side. Further, whilst coins are paid out the identical is recorded at the credit or proper hand facet of the cash e-book.

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