1. To
ACCOUNTING 101
WITH YOUR FAVOURITE
TEACHER MISS CINDY

2. PRINCIPLES OF
ACCOUNTS

3. CASH
BOOK

4. Introduction
Example
Exercise's
Answer
Exercise

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

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

7. within the time allowed.
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. $
May 1 Cash balance brought down from April
May 1 Bank balance brought down from April
May 1 Debtors account : M. Sing
May 1 Creditors account: S. Long
May 8 We pay S. Long his account by cheque, deducting 5%
cash discount $
May25 We pay wages in cash
May28 M. Sing pays us in cash after having deducted 5%
cash discount $

9. Example's Answer Double Entry (page64) May1 Bal.b/d 29 654 May8 S.Long95
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)
May1
Bal.b/d 40
May28
Cash 38
May28
Discount 2 40 40

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

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

18. THE END
Bye!!