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In: Accounting

Madam Bose has been in business for many years as sole trader. His cash at hand...

Madam Bose has been in business for many years as sole trader. His cash at hand on 1^st October, 2018 was N750,000 but there was no bank account.The following transactions took place during the month of October, 2018.

Oct 1 Opened bank account and paid in cash N750,000

Oct 4 Rented premises and paid for 2 months by cheque N30,000

Oct 7 Bought furniture and fitting by cheque N90,000

Oct 11 Purchased goods for sale by cheque N120,000

Oct 14 Cash sales N525,000

Oct 16 Received cheque from Badmus on account of September sales N123,000

Oct 19 Paid cash into bank N190,000

Oct 20 Purchased goods from Gabriel & sons on credit N150,000

Oct 20 Cash sales N111,250

Oct 26 Paid cash into bank N111,250

Oct 28 Sold goods on credit to Stephens & co N270,000

Oct 29 Paid Gabriel & sons on account by cheque N75,000

Oct 30 Paid salaries by cash N81,550

Oct 30 Paid electricity bill by cheque N13,500

Oct 31 Paid sundry expenses by cash N6,000

Required: Prepare the two-column cash book of Madam Bose Enterprises for the month of October 2018.

Expert Solution

Madam Bose Enterprises
Two column cash book
For the month ended as on 31 October 2018 ( Currency N)
(Dr)
Receipts				Payments
Date	Description	Cash	Bank	Date	Description	Cash	Bank
01-10-2018	Balance B/f	7,50,000.00	-	01-10-2018	Cash paid to open bank account	7,50,000.00	-
01-10-2018	Opened bank account	-	7,50,000.00	04-10-2018	Rent paid	-	30,000.00
14-10-2018	Cash sales	5,25,000.00	-	07-10-2018	Purchase furniture & fittings	-	90,000.00
16-10-2018	Badmus	-	1,23,000.00	11-10-2018	Goods purchase	-	1,20,000.00
19-10-2018	Cash deposit	-	1,90,000.00	19-10-2018	Cash deposit	1,90,000.00	-
20-10-2018	Cash sales	1,11,250.00	-	26-10-2018	Cash deposit	1,11,250.00	-
26-10-2018	Cash deposit	-	1,11,250.00	29-10-2018	Gabriel & sons	-	75,000.00
				30-10-2018	Salary	81,550.00	-
				30-10-2018	Electricity exp	-	13,500.00
				31-10-2018	Sundry expenses	6,000.00	-


				30-10-2019	Balance C/f	2,47,450.00	8,45,750.00

		13,86,250.00	11,74,250.00			13,86,250.00	11,74,250.00

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