1 / 19

Hong Kong True Light College

To. Hong Kong True Light College. PRINCIPLES OF ACCOUNTS. By Irene Lui. CASH. Hi! ^.^. BOOK. Introduction. Example. Exercise's Answer. Exercise. Cash Book Book of original entry for cash and bank receipts and payments. Discount Allowed A reduction given to customers

fleta
Télécharger la présentation

Hong Kong True Light College

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. To Hong Kong True Light College

  2. PRINCIPLES OF ACCOUNTS By Irene Lui

  3. CASH Hi! ^.^ BOOK

  4. Introduction Example Exercise's Answer Exercise

  5. Cash Book Book of original entry for cash and bank receipts and payments.

  6. Discount Allowed A reduction given to customers who pay their accounts within the time allowed.

  7. Discount Received A reduction given to us by a supplier when we pay his account within the time allowed.

  8. A Worked Example 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

  9. Example's Answer (page64) May1 Bal.b/d 29 654 May8 S.Long PL58 5 95 May11 Bank C 100 May11 Cash C 100 May28 M.Sing SL91 2 38 May25 Wages GL77 92 May31 Bal.c/d 75 459 2 167 654 5 167 654 Jun1 Bal.b/d 75 459 Double Entry

  10. Purchases Ledger (page 58) May8 Bank CB64 95 May1 Bal.b/d 100 May8 Discount CB64 5 100 100 Sales Ledger (page 91) May28 May1 Bal.b/d 40 Cash 38 Discount 2 May28 40 40

  11. General Ledger (page 77) May25 Cash CB64 92 (page 88) May31 Total for the month CB64 5 CB64 2 May31 Total for the month

  12. Exercise 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.

  13. Answer

  14. THE END Bye!! C Irene Lui

More Related