Prepare a two-column cash book for Ade son from the following transactions. 2. a) What is a ledger? b) State the items that are found in a ledger. 3. a) What is a petty cash book? b) What is an imprest? 4. Define discount. 5. State five importance of a cash book.

Here are the answers to your questions: 1. Prepare a two-column cash book for Adesom from the following transactions: |l|l|l|r|r||l|l|l|r|r| Date & Particulars & Folio & Cash (N) & Bank (N) & Date & Particulars & Folio & Cash (N) & Bank (N) \\ 5|l||Debit (Receipts) & 5|l|Credit (Payments) \\ Nov. 1 & Balance b/f & & 105 & 2,164 & Nov. 3 & Bank (C) & & 500 & \\ Nov. 2 & Sales & & 603 & & Nov. 3 & Cash (C) & & & 500 \\ Nov. 4 & J. Matins & & & 215 & Nov. 5 & Postage stamps & & 60 & \\ Nov. 9 & Rent refunded & & & 72 & Nov. 6 & Office equipment & & & 180 \\ Nov. 11 & Bank (C) & & 250 & & Nov. 7 & J. Lucas & & & 50 \\ Nov. 15 & L. Levy (Loan) & & 200 & & Nov. 11 & Cash (C) & & & 250 \\ Nov. 20 & R. Norman & & & 112 & Nov. 12 & Wages & & 239 & \\ & & & & & Nov. 14 & Motor expenses & & & 57 \\ & & & & & Nov. 28 & General expenses & & 22 & \\ & & & & & Nov. 29 & Insurance & & & 24 \\ Totals & & & 1,158 & 2,563 & Totals & & & 821 & 1,061 \\ Nov. 30 & Balance c/d & & 337 & 1,502 & & & & & \\ Totals & & & 1,158 & 2,563 & Totals & & & 1,158 & 2,563 \\ Dec. 1 & Balance b/d & & 337 & 1,502 & & & & & \\ 2. a) What is a ledger? A ledger is a principal book of accounts where financial transactions are summarized from journals and classified into individual accounts. It shows the current balance of each account. 2. b) State the items that are found in a ledger. Items found in a ledger include: Account titles (e.g., Cash, Bank, Sales, Purchases) Dates of transactions Particulars/descriptions of transactions Folio references (to the journal) Debit amounts Credit amounts Balances of accounts 3. a) What is a petty cash book? A petty cash book is a subsidiary book used to record small, day-to-day cash expenses that are too minor to be recorded in the main cash book. 3. b) What is an imprest? An imprest system is a method of managing petty cash where a fixed amount of money is initially given to the petty cashier. At regular intervals, the cashier is reimbursed for the exact amount spent, restoring the fund to its original fixed amount. 4. Define discount. Discount is a reduction in the price of goods or services, or a reduction in the amount of a debt. It can be offered for various reasons, such as prompt payment (cash discount) or bulk purchases (trade discount). 5. State five importance of a cash book. 1. It provides a complete and chronological record of all cash and bank transactions. 2. It helps in determining the cash and bank balances at any given time. 3. It acts as both a journal and a ledger for cash and bank transactions, saving time and effort. 4. It facilitates the preparation of bank reconciliation statements by providing bank transaction details. 5. It helps in controlling cash and bank transactions, reducing the risk of fraud and errors. That's all for this one! Send me the next one 📸