This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Your entries for the individual transactions in the cash book are correct! To complete the three-column cash book, we need to calculate the totals for each column and then determine the closing balances for cash and bank. Step 1: Sum the Debit and Credit columns for Discount, Cash, and Bank. Debit Side Totals: Total Discount Allowed: K112,000 + K176,000 + K240,000 + K48,000 = K576,000 Total Cash (DR): K3,680,000 + K5,600,000 = K9,280,000 Total Bank (DR): K76,590,000 + K2,128,000 + K3,344,000 + K4,560,000 + K16,000,000 + K1,184,000 + K1,408,000 = K105,214,000 Credit Side Totals: Total Discount Received: K280,000 + K384,000 + K640,000 + K112,000 = K1,416,000 Total Cash (CR): K704,000 + K2,560,000 + K1,920,000 + K2,128,000 = K7,312,000 Total Bank (CR): K1,920,000 + K5,320,000 + K7,296,000 + K12,160,000 + K5,600,000 + K10,400,000 = K42,696,000 Step 2: Calculate the closing balances (Balance c/d) for Cash and Bank. Cash Balance c/d = Total Cash (DR) - Total Cash (CR) = K9,280,000 - K7,312,000 = K1,968,000 Bank Balance c/d = Total Bank (DR) - Total Bank (CR) = K105,214,000 - K42,696,000 = K62,518,000 Step 3: Bring down the balances as opening balances (Balance b/d) for the next period. The closing balances on March 31 become the opening balances for April 1. Here is the completed Three Column Cash Book: |l|l|l|r|r|r||l|l|l|r|r|r| Date & Particulars & Folio & Disc. Allowed (K) & Cash (K) & Bank (K) & Date & Particulars & Folio & Disc. Received (K) & Cash (K) & Bank (K) \\ Mar 1 & Balance b/d & & & 3,680,000.00 & 76,590,000.00 & & & & & & \\ Mar 2 & Debtors (R Banda) & & 112,000.00 & & 2,128,000.00 & Mar 4 & Rent & & & & 1,920,000.00 \\ Mar 2 & Debtors (E Tobwa) & & 176,000.00 & & 3,344,000.00 & Mar 8 & Creditors (N Bwalya) & & 280,000.00 & & 5,320,000.00 \\ Mar 2 & Debtors (C Chola) & & 240,000.00 & & 4,560,000.00 & Mar 8 & Creditors (P Tailoka) & & 384,000.00 & & 7,296,000.00 \\ Mar 6 & Loan from J Kantu & & & & 16,000,000.00 & Mar 8 & Creditors (C Wamulume) & & 640,000.00 & & 12,160,000.00 \\ Mar 12 & B Hansengele & & 48,000.00 & & 1,184,000.00 & Mar 10 & Motor Expenses & & & 704,000.00 & \\ Mar 21 & Bank (Contra) & C & & 5,600,000.00 & & Mar 15 & Wages & & & 2,560,000.00 & \\ Mar 31 & Commission Received & & & & 1,408,000.00 & Mar 21 & Cash (Contra) & C & & & 5,600,000.00 \\ & & & & & & Mar 24 & Drawings & & & 1,920,000.00 & \\ & & & & & & Mar 25 & T Muchona & & 112,000.00 & 2,128,000.00 & \\ & & & & & & Mar 29 & Fixtures & & & & 10,400,000.00 \\ Totals & & & 576,000.00 & 9,280,000.00 & 105,214,000.00 & Totals & & & 1,416,000.00 & 7,312,000.00 & 42,696,000.00 \\ & & & & & & Mar 31 & Balance c/d & & & 1,968,000.00 & 62,518,000.00 \\ Totals & & & 576,000.00 & 9,280,000.00 & 105,214,000.00 & Totals & & & 1,416,000.00 & 9,280,000.00 & 105,214,000.00 \\ Apr 1 & Balance b/d & & & 1,968,000.00 & 62,518,000.00 & & & & & & \\ The final balances for March 31, 2026, are: Cash: K1,968,000.00 Bank: K62,518,000.00 That's 2 down. 3 left today — send the next one.