Question

Arnold is a trader buying and selling goods. The following transactions took place in the month of May 2020.
May 1: Cash in hand $1500 (debit balance), Cash at bank $4810 (debit balance).
May 2: Sally settled her account amounting to $500, by cheque less 2% cash discount.
May 3: Purchased goods in cash, $1800.
May 5: Sold goods in cash $2200
May 6: Cash deposited into the bank $1000
May 8: Received a cheque for $700 from Baker after allowing him a discount of $90
May 19: Bought computer by cheque for office use, $600
May 20: Paid the amount owing to Arjun of 3000 less 2% discount by cheque
May 21: Paid electricity by cheque, $200.
May 22: Goods sold and a cheque received $400.
May 25: Paid Salaries by cheque $950.
May 29: Purchased goods in cash $700.
Required;
Prepare a three column cash book for Arnold. Balance the Cash Book at 31 May and bring the balance down at 1June.

pliz help

Answer 1

Answer:

The fundamental steps in the accounting process are diagrammatically presented below.