Record the following in the cash book of Grace Chaita, Balance it off. 2020 March

Here's how to record the transactions in the cash book and balance it off for Task 5.1.

Step 1: Prepare the Cash Book and record opening balances. The cash book has two sides: Debit (receipts) and Credit (payments). Each side has columns for Cash and Bank.

| Date | Particulars | Cash ($) | Bank ($) | Date | Particulars | Cash ($) | Bank ($) | | :------ | :-------------------- | :-------- | :-------- | :------ | :-------------- | :-------- | :-------- | | Mar 1 | Balance b/d | 2,300 | 6,200 | | | | |

Step 2: Record all debit transactions (receipts). These entries increase the cash or bank balance.

| Date | Particulars | Cash ($) | Bank ($) | Date | Particulars | Cash ($) | Bank ($) | | :------ | :-------------------- | :-------- | :-------- | :------ | :-------------- | :-------- | :-------- | | Mar 1 | Balance b/d | 2,300 | 6,200 | | | | | | Mar 3 | Jongwe Rarumwa Hotels | 950 | | | | | | | Mar 10 | Sales | 990 | | | | | | | Mar 15 | Joyce Biti | | 1,900 | | | | | | Mar 19 | Grace Obama | 1,200 | | | | | |

Step 3: Record all credit transactions (payments). These entries decrease the cash or bank balance.

| Date | Particulars | Cash ($) | Bank ($) | Date | Particulars | Cash ($) | Bank ($) | | :------ | :-------------------- | :-------- | :-------- | :------ | :-------------- | :-------- | :-------- | | Mar 1 | Balance b/d | 2,300 | 6,200 | Mar 6 | Robert Misha | | 1,700 | | Mar 3 | Jongwe Rarumwa Hotels | 950 | | Mar 7 | Rent | 560 | | | Mar 10 | Sales | 990 | | Mar 13 | Computers | | 1,000 | | Mar 15 | Joyce Biti | | 1,900 | Mar 23 | Wages | 200 | 500 | | Mar 19 | Grace Obama | 1,200 | | Mar 25 | Electricity bill| 320 | |

Step 4: Balance the Cash Book. Calculate the total for each column on both sides. The difference is the balance carried down (c/d) to the next period, which then becomes the balance brought down (b/d).

• Cash Column:

  • Debit Total: $2,300 +$950 + $990 +$1,200 = $5,440
  • Credit Total: $560 +$200 + $320 =$1,080
  • Balance c/d (Cash): $5,440 -$1,080 = $4,360

• Bank Column:

  • Debit Total: $6,200 +$1,900 = $8,100
  • Credit Total: $1,700 +$1,000 + $500 =$3,200
  • Balance c/d (Bank): $8,100 -$3,200 = $4,900

Here is the balanced cash book:

The final balances are:

• Cash Balance: \boxed{*\4,360*}$
• Bank Balance: \boxed{*\4,900*}$