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
Step 1: Calculate the total Debit (Dr) entries for Cash. The Dr Cash entries are: 32,000 (Balance b/f) + 500 (Cash) + 900 (Sales) + 400 (Commission) + 200 (Bank C) + 2,000 (Sales) = 36,000 The total Dr Cash is 36,000. Step 2: Calculate the total Credit (Cr) entries for Cash. The Cr Cash entries are: 300 (Drawings) + 350 (Purchase) + 1,500 (Insurance) + 1,000 (Office) = 3,150 The total Cr Cash is 3,150. Step 3: Determine the closing Cash balance (Balance c/d). The Cash balance c/d is the total Dr Cash minus the total Cr Cash. Cash Balance c/d = 36,000 - 3,150 = 32,850 Step 4: Calculate the total Debit (Dr) entries for Bank. The Dr Bank entries are: 25,000 (Balance b/f) + 1,000 (Cash C) = 26,000 The total Dr Bank is 26,000. Step 5: Calculate the total Credit (Cr) entries for Bank. The Cr Bank entries are: 500 (Bank C) + 600 (Motor Van) + 250 (Salaries) + 200 (Cash C) + 1,000 (Bank C) + 3,000 (Purchase) + 2,000 (Drawings) + 2,000 (Office) = 9,550 The total Cr Bank is 9,550. Step 6: Determine the closing Bank balance (Balance c/d). The Bank balance c/d is the total Dr Bank minus the total Cr Bank. Bank Balance c/d = 26,000 - 9,550 = 16,450 The correct closing balances for Malick Ceesay's Cash Book as of March 31, 2003, are: Cash Balance: 32,850 Bank Balance: 16,450 Send me the next one 📸