We read your photo as:

Draw up the cash book and close off the cash book at the end of the month

Accounting

ScanSolve AI Answer

Step-by-step solution

4 steps

  1. Set up the two-column cash book with opening balances.

    The cash book records all cash and bank transactions. The opening balances for Cash and Bank on 1 January 2026 are N$20,000 each.

    Cash Book for January 2026DateParticularsFolioCash (N$)Bank (N$)DateParticularsFolioCash (N$)Bank (N$)Jan 1Balance b/d20,00020,000\textbf{Cash Book for January 2026} \\ \begin{array}{|l|l|l|r|r||l|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Folio} & \textbf{Cash (N\$)} & \textbf{Bank (N\$)} & \textbf{Date} & \textbf{Particulars} & \textbf{Folio} & \textbf{Cash (N\$)} & \textbf{Bank (N\$)} \\ \hline \text{Jan 1} & \text{Balance b/d} & & 20,000 & 20,000 & & & & & \\ \hline \end{array}

  2. Record all receipts (debit side) and payments (credit side) for January 2026.

    Contra entries (transfers between cash and bank) are marked with 'C' in the folio column.

    Cash Book for January 2026DateParticularsFolioCash (N$)Bank (N$)DateParticularsFolioCash (N$)Bank (N$)Jan 1Balance b/d20,00020,000Jan 4Land and BuildingsGL105,000Jan 1CapitalGL130,000Jan 5PurchasesGL15,000Jan 6Bank (Contra)C4,000Jan 6Cash (Contra)C4,000Jan 8SalesGL10,000Jan 10VehiclesGL60,000Jan 16Rent ReceivedGL900Jan 15TelecomGL5,000Jan 22Bank (Contra)C2,000Jan 18WaterGL800Jan 31Cash (Contra)C2,000Jan 22Cash (Contra)C2,000Jan 23InsuranceGL900Jan 24SalariesGL5,800Jan 31Bank (Contra)C2,000\textbf{Cash Book for January 2026} \\ \begin{array}{|l|l|l|r|r||l|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Folio} & \textbf{Cash (N\$)} & \textbf{Bank (N\$)} & \textbf{Date} & \textbf{Particulars} & \textbf{Folio} & \textbf{Cash (N\$)} & \textbf{Bank (N\$)} \\ \hline \text{Jan 1} & \text{Balance b/d} & & 20,000 & 20,000 & \text{Jan 4} & \text{Land and Buildings} & \text{GL} & & 105,000 \\ \text{Jan 1} & \text{Capital} & \text{GL} & & 130,000 & \text{Jan 5} & \text{Purchases} & \text{GL} & & 15,000 \\ \text{Jan 6} & \text{Bank (Contra)} & \text{C} & 4,000 & & \text{Jan 6} & \text{Cash (Contra)} & \text{C} & & 4,000 \\ \text{Jan 8} & \text{Sales} & \text{GL} & & 10,000 & \text{Jan 10} & \text{Vehicles} & \text{GL} & & 60,000 \\ \text{Jan 16} & \text{Rent Received} & \text{GL} & & 900 & \text{Jan 15} & \text{Telecom} & \text{GL} & & 5,000 \\ \text{Jan 22} & \text{Bank (Contra)} & \text{C} & 2,000 & & \text{Jan 18} & \text{Water} & \text{GL} & 800 & \\ \text{Jan 31} & \text{Cash (Contra)} & \text{C} & & 2,000 & \text{Jan 22} & \text{Cash (Contra)} & \text{C} & & 2,000 \\ & & & & & \text{Jan 23} & \text{Insurance} & \text{GL} & & 900 \\ & & & & & \text{Jan 24} & \text{Salaries} & \text{GL} & & 5,800 \\ & & & & & \text{Jan 31} & \text{Bank (Contra)} & \text{C} & 2,000 & \\ \hline \end{array}

  3. Calculate the totals for each column and determine the closing balances.

    • Cash Debit Total: N$20,000 + N$4,000 + N$2,000 = N$26,000
    • Cash Credit Total: N$800 + N$2,000 = N$2,800
    • Bank Debit Total: N$20,000 + N$130,000 + N$10,000 + N$900 + N$2,000 = N$162,900
    • Bank Credit Total: N$105,000 + N$15,000 + N$4,000 + N$60,000 + N$5,000 + N$2,000 + N$900 + N$5,800 = N$197,700

  4. Close off the cash book by calculating the balance carried down (c/d) and brought down (b/d).

    • Cash Balance c/d: N$26,000 (Debit Total) - N$2,800 (Credit Total) = N$23,200 (Credit side to balance)
    • Bank Balance c/d: N$197,700 (Credit Total) - N$162,900 (Debit Total) = N$34,800 (Debit side to balance, indicating an overdraft)
    Cash Book for January 2026DateParticularsFolioCash (N$)Bank (N$)DateParticularsFolioCash (N$)Bank (N$)Jan 1Balance b/d20,00020,000Jan 4Land and BuildingsGL105,000Jan 1CapitalGL130,000Jan 5PurchasesGL15,000Jan 6Bank (Contra)C4,000Jan 6Cash (Contra)C4,000Jan 8SalesGL10,000Jan 10VehiclesGL60,000Jan 16Rent ReceivedGL900Jan 15TelecomGL5,000Jan 22Bank (Contra)C2,000Jan 18WaterGL800Jan 31Cash (Contra)C2,000Jan 22Cash (Contra)C2,000Jan 31Balance c/d34,800Jan 23InsuranceGL900Jan 24SalariesGL5,800Jan 31Bank (Contra)C2,000Jan 31Balance c/d23,20026,000197,70026,000197,700Feb 1Balance b/d23,200Feb 1Balance b/d34,800\textbf{Cash Book for January 2026} \\ \begin{array}{|l|l|l|r|r||l|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Folio} & \textbf{Cash (N\$)} & \textbf{Bank (N\$)} & \textbf{Date} & \textbf{Particulars} & \textbf{Folio} & \textbf{Cash (N\$)} & \textbf{Bank (N\$)} \\ \hline \text{Jan 1} & \text{Balance b/d} & & 20,000 & 20,000 & \text{Jan 4} & \text{Land and Buildings} & \text{GL} & & 105,000 \\ \text{Jan 1} & \text{Capital} & \text{GL} & & 130,000 & \text{Jan 5} & \text{Purchases} & \text{GL} & & 15,000 \\ \text{Jan 6} & \text{Bank (Contra)} & \text{C} & 4,000 & & \text{Jan 6} & \text{Cash (Contra)} & \text{C} & & 4,000 \\ \text{Jan 8} & \text{Sales} & \text{GL} & & 10,000 & \text{Jan 10} & \text{Vehicles} & \text{GL} & & 60,000 \\ \text{Jan 16} & \text{Rent Received} & \text{GL} & & 900 & \text{Jan 15} & \text{Telecom} & \text{GL} & & 5,000 \\ \text{Jan 22} & \text{Bank (Contra)} & \text{C} & 2,000 & & \text{Jan 18} & \text{Water} & \text{GL} & 800 & \\ \text{Jan 31} & \text{Cash (Contra)} & \text{C} & & 2,000 & \text{Jan 22} & \text{Cash (Contra)} & \text{C} & & 2,000 \\ \text{Jan 31} & \text{Balance c/d} & & & 34,800 & \text{Jan 23} & \text{Insurance} & \text{GL} & & 900 \\ & & & & & \text{Jan 24} & \text{Salaries} & \text{GL} & & 5,800 \\ & & & & & \text{Jan 31} & \text{Bank (Contra)} & \text{C} & 2,000 & \\ & & & & & \text{Jan 31} & \text{Balance c/d} & & 23,200 & \\ \hline & & & \textbf{26,000} & \textbf{197,700} & & & & \textbf{26,000} & \textbf{197,700} \\ \hline \text{Feb 1} & \text{Balance b/d} & & 23,200 & & \text{Feb 1} & \text{Balance b/d} & & & 34,800 \\ \hline \end{array}

    The final cash book for January 2026 is shown above.
    The closing balances are:

    • Cash: N$23,200 (Debit balance)
    • Bank: N$34,800 (Credit balance / Overdraft)
Was this helpful?

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question

More Accounting Questions

QRecord the transactions in the Cash Book and the General Journal for January 2018 and close off the…QPrepare a three-column cash book for the following transactions, including opening balances of cash…QPrepare a three-column cash book for May, recording opening balances, cash receipts, payments, and…QPrepare Cash Book and pass Journal entries.QPrepare a three-column cash book with opening balances of cash Sh 50,000 and bank Sh 180,000 on May…
See all Accounting questions →
Got a syllabus? Photograph it and I'll tell you what's due and what's worth the most.
Handwritten step-by-step solution preview

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp