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Zorluk: ZorSingle-Column and Two-Column Cash Books

Tunde & Sons Trading maintains a two-column cash book. On 1 July 2026, the firm had a cash balance of ₦68,500 and a bank overdraft of ₦14,200. During the month of July 2026, the following transactions occurred:

- July 5: Paid a creditor ₦28,500 by cheque in settlement of a debt after deducting a 5% cash discount.
- July 12: Made cash sales of ₦45,000, out of which ₦30,000 was immediately lodged into the bank.
- July 18: Withdrew ₦12,000 from the bank for office cash use.
- July 25: Received a cheque of ₦48,000 from a debtor in full settlement of a ₦50,000 debt.
- July 28: Paid office rent of ₦8,500 in cash.

What is the closing bank balance of Tunde & Sons Trading as at 31 July 2026 in Naira (₦)?

Cevap: 23300 ₦

Cevap

The closing bank balance of Tunde & Sons Trading as at 31 July 2026 is ₦23,300 (debit balance).
The closing bank balance is determined by starting with the credit overdraft balance of ₦14,200, adding bank credits for cheque payments (₦28,500) and bank cash withdrawal (₦12,000) to get total bank credits of ₦54,700. Comparing this to total bank debits of ₦78,000 (₦30,000 lodged + ₦48,000 debtor cheque) yields a net closing debit balance of ₦23,300.

Adım Adım Çözüm

1
Identify the opening bank balance and its debit/credit orientation
Opening Bank Balance = -₦14,200 (Credit / Overdraft)
A bank overdraft is a short-term liability and is recorded on the credit side of the bank column in the cash book.
2
Calculate total debit entries (bank receipts)
Total Bank Receipts = ₦30,000 (July 12 cash lodged) + ₦48,000 (July 25 cheque received) = ₦78,000
Money paid into the bank account increases the asset balance and must be debited in the bank column.
3
Calculate total credit entries (bank payments and opening overdraft)
Total Bank Payments = ₦14,200 (opening overdraft) + ₦28,500 (July 5 cheque payment) + ₦12,000 (July 18 cash withdrawal) = ₦54,700
Payments made by cheque and cash withdrawals from the bank decrease the bank account balance and are credited.
4
Balance the bank column to obtain the closing balance
Closing Bank Balance = ₦78,000 (Debits) - ₦54,700 (Credits) = ₦23,300
Total debit entries exceed total credit entries by ₦23,300, resulting in a positive debit balance at the end of the month.

Anahtar Kavram

Balancing a Two-Column Cash Book with Overdraft and Contra Entries
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Konular

Single-Column and Two-Column Cash Books

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