Question Tag: Two-Column Cash Book

a. Write up a two-column cash book from the following details and balance off as at the end of the month.

• January 1: Started business with capital N1,000,000 cash
• January 2: Paid rent of N100,000 cash
• January 3: I.K. Opara lent N5,000,000 by cheque
• January 4: Ebenezer was paid by cheque N650,000
• January 5: Cash sales N980,000
• January 7: Ileri paid us cheque, N620,000
  Cash sales, N530,000
  Received cash of N650,000 from Robert
• January 9: Paid George N220,000 cash
• January 16: Took N500 out of the cash till and paid into the bank account.
• January 19: I.K. Opara was repaid N1,000,000 by cheque
• January 22: Cash sales paid directly to the bank N600,000
• January 26: Motor expenses of N120,000 was paid by cheque
• January 30: N1,000,000 cash was withdrawn from bank for business use
• January 31: Paid wages of N970,000 by cash

  (10 Marks)

b. i. Explain the uses of the Journal. (4 Marks)
ii. The following transactions took place in the books of Olson Limited in June 2019:

• A machine is bought on credit from Sylva Enterprises for N186,000 on June 1.
• A motor vehicle is sold to Adefela on credit for N360,000 on June 8.
• Wonu, a customer, owed N160,000. She offers a motor in full settlement of the debt on June 16 and the offer was accepted.

Required:
Journalize the transactions. (6 Marks)