Matuu traders had the following balances in its cashbook on 1st October 2022. Cash in hand Ksh. 10,000, bank Kshs. 150,000 The following transactions took place during the month of October 2022.
October 2
cash purchases Kshs 2000
October 3
credit sales to Mwikali Shs 4000
October 4
bought building paying by cheque Ksh 50,000.
October 8
paid wages by cash Ksh 500
October 9
paid to cash postage Ksh 50, insurance Ksh 150 and rent Ksh 400
October 12
received a cheque from Kaluki, a debtor Ksh 200
October 15th
withdrew Ksh 4000 from bank office use.
October 18
Took cash Ksh 1000 for his personal use.
October 24th
Credit purchases from Kimeu Ksh 2500
October 29th
Took all the cash to the bank leaving a balance of only Ksh 100.
Required: prepare a two column cash book from the above information and balance it off
Two-Column Cash Book for Matuu Traders
For the Month of October 2022
| Date | Details | Cash (Ksh) | Bank (Ksh) | Date | Details | Cash (Ksh) | Bank (Ksh) |
|---|---|---|---|---|---|---|---|
| Oct 1 | Balance b/d | 10,000 | 150,000 | ||||
| Oct 2 | Purchases | (2,000) | |||||
| Oct 4 | Building | (50,000) | |||||
| Oct 8 | Wages | (500) | |||||
| Oct 9 | Postage | (50) | |||||
| Insurance | (150) | ||||||
| Rent | (400) | ||||||
| Oct 12 | Kaluki (cheque received) | 200 | |||||
| Oct 15 | Bank (withdrawn for use) | 4,000 | (4,000) | ||||
| Oct 18 | Drawings | (1,000) | |||||
| Oct 29 | Bank (cash deposited) | (12,200) | 12,200 | ||||
| Oct 31 | Balance c/d | 100 | 108,400 |
Balances:
- Cash in Hand: Ksh 100
- Bank: Ksh 108,400
Notes:
- Credit sales to Mwikali and credit purchases from Kimeu are excluded as they do not involve immediate cash or bank transactions.
- On October 29th, cash deposited into the bank is calculated as all remaining cash except Ksh 100 left in hand.
- Balances at the end of the month represent the remaining cash and bank amounts.