I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider



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304

 

(d) 


Payments were also made in cash out of the till: 

 

 



$    

(i) 


To trade payables 

800 


(ii) 

For sundry expenses 

1,500 

(iii) To 



drawings 

3,700 


At 31 December 20X7, the business had cash in the till of $450 and trade payables of $1,400. The 

cash balance in the bank was not known and the value of closing inventory has not yet been calculated. 

There were no accruals or prepayments. No further long-term assets were purchased during the year. The 

depreciation charge for the year is $900. 



Required 

(a) 


Prepare a two column cash book for the period. 

(b) 


Prepare the statement of profit or loss for the year to 31 December 20X7 and the statement of 

financial position as at 31 December 20X7. 

7.2 Discussion and solution 

A two column cash book is completed as follows. 




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