The cash book (two‑column) for June shows the following entries (all amounts in $₦$):

Opening balances - Cash: $8,000$; Bank: $20,000$.

Receipts - Cash sales recorded as $4,000$ (error, should be $40,000$); Received from debtors (bank) $30,000$; Interest received (bank) $2,000$.

Payments - Rent paid (cash) $10,000$; Paid to creditors (bank) $15,000$; Drawings (cash) $5,000$.

Correct the error in cash sales and prepare the corrected cash book, stating the closing balances of cash and bank.

Question

The cash book (two‑column) for June shows the following entries (all amounts in $₦$):

Opening balances - Cash: $8,000$; Bank: $20,000$.

Receipts - Cash sales recorded as $4,000$ (error, should be $40,000$); Received from debtors (bank) $30,000$; Interest received (bank) $2,000$.

Payments - Rent paid (cash) $10,000$; Paid to creditors (bank) $15,000$; Drawings (cash) $5,000$.

Correct the error in cash sales and prepare the corrected cash book, stating the closing balances of cash and bank.

Accepted Answer

Cash balance = $33,000$; Bank balance = $37,000$.

Neco 2025 Financial Accounting Question 9