Cash Book Assignment Questions

CASH BOOK ASSIGNMENT QUESTIONS
Instructions: Answer all the questions in your exercise book
QUESTION ONE
The following transactions took place in the business of Jamia Grocers for
the month of April 2018:
April: 1 Balances brought forward – cash KES 4,600; Bank KES 95,120
2 Mukuru, who owed KES 13,200 settled his account by cheque less
5 percent cash discount
3 A B Traders lent Jamia Traders KES 20,000 by cheque.
4 Jamia Traders paid KES 2,400 by cheque for the business rent.
8 Settled the following accounts by cheque, in each case deducting 2

½ per cent discount:
N. Kungu KES 7,200
T. Mukati KES 9,600
L. Opende KES16,000
Paid vehicle maintenance expenses in cash KES 880.
M. Oswee who owed KES 1,540 settled his accounts after

deducting KES60 cash discount
15 Paid casual wages in cash KES 3,200
20 The following debtors settled their accounts by cheque:
C. Waruing Account KES 5,200
R. Wabiliangah KES 6,800
H. Wote KES 9,200
Each one of them deducted 5% cash discount.
22 Withdrew from bank KES 7,000 for business use.
24 Cash drawings by the proprietor of Jamia Traders KES 2,400
25 Paid J. Ponds KES 2,660 after deducting cash discount of KES

140.
1
29 Received commission KES 1,760 by cheque.
30 Bought item of furniture for office use KES 13,000.
Required:
(i) Write up a three-column cashbook and bring down balances.
(ii) Post the entries in the cashbook including discounts received and
allowed to the relevant ledger accounts.
QUESTION TWO
(a) What is the purpose of keeping a three column cashbook?

(b) State how bank standing orders receivable and payable are recorded
in the cashbook.
(c) How are returned cheques recorded (both drawer’s and drawee’s) in
the cashbook?
(d) The following transactions took place in the business of Wataalamu
Traders for the month of April 2017:
April 1 Balances brought forward – Cash KES 1,385, Bank KES 86,540.
2 T. Matheri, who owed KES 15,000, paid the cheque after deducting
5% cash discount.
3 Better Business Association advanced Wataalamu Traders a loan of

KES 50,000 by cheque.
4 Bought a fridge for KES 70,000 and paid by cheque.
6 A cheque of KES 5,000 was issued to the landlord for shop rent.
6 Paid water bill in cash, KES 450.
9 Paid casual wages in cash, KES 850.
Cashed a cheque of KES 2,000 for the office use.
Paid electricity bill in cash KES 780.
15 Withdrew KES 23,000 from the bank for personal use.
18 Paid B. Kamau’s supplies invoice of KES 28,000 by cheque less 7

½ % discount.
20 Bought a wheelbarrow for KES 2,000 and paid by cheque.
24 The debtors, K. Mbogo, C. Tara and B. Toko settled their accounts

of KES 23,000, KES 18,000 and KES 26,000 by cheques less 5%
2
discount respectively.
29 Paid wages by cheque KES 18,500.
30 Received dividends for KES 75,000 by cheque. Paid Z. Kioko’s

supplies invoice of KES 13,000 by cheque less 8% discount.
Required:
(i) Write-up a three-column cashbook and bring down the balances.
(ii) Post the entries in the cashbook including the discounts received and
allowed to the relevant ledger accounts.
QUESTION THREE
(a) Veteran trader maintains a three column cashbook. The following
information was supplied for the month of September 2017:
Balances as at 1 KES
September 2017
Cash in hand 243,000
Cashat bank 1,488,000
Transactions during the

month
September 2 Paid Ben Waithaka by cheque KES 158,000 after

deduction of KES 45,000 discount
3 Received a cheque of KES 324,000 from motors

after a discount of KES 28,000.
4 Paid the water bill of KES 24,000 by cheque.
Paid salaries and wages of KES 124,000 by

cheque.
5 Paid Wangari Traders by cheque KES 248,000

after deducting a discount of KES 12,000.
11 Paid an invoice of KES 250,000 by cheque from

Pendo traders less 6% discount.
16 Better traders settled their debts by cheque of

KES 650,000 less 6% discount.
17 Withdrew KES 50,000 for petty cash
3
Paid casual wages KES 45,000 in cash
22 Received dividend cheque from Kenya Traders Ltd

KES 59,000.
Paid repairs of KES 59,000 in cash
29 Paid salaries and wages KES 164,000 by cheque.
29 Bought a desk for KES 25,000 in cash
Required:
i. A three column cashbook to record the above transactions.(8 marks)

ii. Post the entries in the cashbook to ledger accounts. (7 marks)

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CASH BOOK ASSIGNMENT QUESTIONS

Instructions: Answer all the questions in your exercise book

3 A B Traders lent Jamia Traders KES 20,000 by cheque.

8 Settled the following accounts by cheque, in each case deducting 2

N. Kungu KES 7,200

T. Mukati KES 9,600

Paid vehicle maintenance expenses in cash KES 880.

M. Oswee who owed KES 1,540 settled his accounts after

15 Paid casual wages in cash KES 3,200

20 The following debtors settled their accounts by cheque:

C. Waruing Account KES 5,200

R. Wabiliangah KES 6,800

H. Wote KES 9,200

Each one of them deducted 5% cash discount.

22 Withdrew from bank KES 7,000 for business use.

24 Cash drawings by the proprietor of Jamia Traders KES 2,400

25 Paid J. Ponds KES 2,660 after deducting cash discount of KES

30 Bought item of furniture for office use KES 13,000.

(a) What is the purpose of keeping a three column cashbook?

3 Better Business Association advanced Wataalamu Traders a loan of

4 Bought a fridge for KES 70,000 and paid by cheque.

6 Paid water bill in cash, KES 450.

9 Paid casual wages in cash, KES 850.

Cashed a cheque of KES 2,000 for the office use.

Paid electricity bill in cash KES 780.

15 Withdrew KES 23,000 from the bank for personal use.

18 Paid B. Kamau’s supplies invoice of KES 28,000 by cheque less 7

20 Bought a wheelbarrow for KES 2,000 and paid by cheque.

24 The debtors, K. Mbogo, C. Tara and B. Toko settled their accounts

29 Paid wages by cheque KES 18,500.

30 Received dividends for KES 75,000 by cheque. Paid Z. Kioko’s

Cash in hand 243,000

Cashat bank 1,488,000

Transactions during the

September 2 Paid Ben Waithaka by cheque KES 158,000 after

3 Received a cheque of KES 324,000 from motors

4 Paid the water bill of KES 24,000 by cheque.

Paid salaries and wages of KES 124,000 by

5 Paid Wangari Traders by cheque KES 248,000

11 Paid an invoice of KES 250,000 by cheque from

16 Better traders settled their debts by cheque of

17 Withdrew KES 50,000 for petty cash

22 Received dividend cheque from Kenya Traders Ltd

Paid repairs of KES 59,000 in cash

29 Paid salaries and wages KES 164,000 by cheque.

29 Bought a desk for KES 25,000 in cash

i. A three column cashbook to record the above transactions.(8 marks)

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