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Study the cash book below to answer Questions 5 and 6.
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2 partsStep-by-step solution
2 stepsHere are the answers to your questions:
Part a
MULTIPLE CHOICE QUESTIONS
Part 1
What information on the cash book above is recorded monthly?
The cash book records daily transactions, but the month (July) is indicated, and a balance is maintained, which would typically be summarized at the end of the month.
B. Month written down and balance
The final answer is
Part 2
If a break and enter occurs on the 4th of July. How much cash would be stolen?
Identify the cash balance at the end of the last recorded day.
The cash book shows the balance on July 3rd as K690.
Assume this is the amount available for theft on July 4th.
If a break and enter occurs on July 4th, the amount of cash available would be the closing balance from July 3rd.
C. K690
The final answer is
Part b
SHORT ANSWER QUESTIONS
Part 6
List one document that gives evidence of cash transaction.
A document that gives evidence of a cash transaction is a receipt.
Part 7
What do we call the money and goods taken out of business by the owner for personal use?
The money and goods taken out of a business by the owner for personal use are called drawings or withdrawals.
Part 8
Why do businesses have surplus?
Businesses have a surplus primarily to generate profit, which can then be used for reinvestment in the business, expansion, building reserves for future needs, or distributing to owners.
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