On 1st March 2006 the cash book of Kericho traders showed cash and bank balances of sh. 15000 and sh 147000 respectively. The following transactions took place during the month

On 1st March 2006 the cash book of Kericho traders showed cash and bank balances of sh. 15000 and sh 147000 respectively. The following transactions took place during the month

• May 3 cash sales sh 120, 000
• May 11 paid sh. 7,500 cash in respect to wages
• May 16 received a cheque of sh. 250,000 from a debtor
• May 26 withdrew sh. 25,000 from bank for office use.
• May 29 paid sh. 97,000 cash to creditor

Prepare a two column cash book                (4mks)

Solution

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