1.

The difference between cash term with credit term is cash term is the payment is made or collected immidiately (upon purchase or sale).
Inversely, credit term is means the payment is made or collected at a future date, based on the credit period given, usually is 30 days, 60 days, and 90 days.
2. Trade discount is the percentage reduction granted to a customer from the list price because of purchase in large quantity.
Inversely, cash discount is a percentage reduction granted to the customer in order to encourage paying within a specified period (earlier than the credit period given).
3. Cash in business can be classified in to 3 types. 1st types is cash account which means the cash is on hand for immidiate purpose or operation. E.g: cash in hand.
2nd is the bank account which means the cash is stored in bank account. E.g: cash is in ABC Bank.
3rd is petty cash account, it's also means small amount cash payment for any immaterial expenses. E.g: purchase stationery with price RM 89.90.
4. The purpose to preparing a 3 column cash book is to save time and lesser for opening account to make it look more simple and easier to understand.
3 column cash book on debit side is included discount allowed, cash and bank account. Meanwhile, on credit side have discount received, cash and bank account.
6. Overdraft meaning that the withdrawal of cash is
8. At the end of the period, the cashier will reimburse the petty cashier the amount of petty cash spent during the period so that the petty cashier will start with the same amount of the petty cash float.
The source documents are the various cash bill, receipts etc. Petty cashier will issue the petty cash voucher and signed by the recipients to acknowledge the receipts of petty cash.
Date Discount Cash Bank
(RM) (RM) (RM)
1/5/2014 Capital 800.00 1,000.00
9/5/2014 Sales 80.00
15/5/2014 Capital 1,000.00
16/5/2014 Receivables - Todds 30.00 570.00
30/5/2014 Cash C 400.00
31/5/2014 Receivables - Kenneth 25.00 475.00
55.00 880.00 3,445.00
1/6/2014 Balance b/f 289.00 1,950.00
Cash Book
Capital Account
Date RM Date RM
31/5/2014 Balance c/f 2,800.00 1/5/2014 Bank 1,000.00
Cash 800.00
15/5/2014 Bank 1,000.00
2,800.00 2,800.00
1/6/2014 Balance b/f 2,800.00
Date RM Date RM
31/5/2014 Profit & Loss 1,130.00 8/5/2014 Todds 300.00
9/5/2014 Cash 80.00
13/5/2014 Todds 300.00
26/5/2014 Tali 450.00
1,130.00 1,130.00
Quit rent & assessment Account
Date RM Date RM
2/5/2014 Bank 40.00 31/5/2014 Profit & Loss 40.00
Date RM Date RM
8/5/2014 Sales 300.00 16/5/2014 Bank 570.00
13/5/2014 Sales 300.00 Discount Allowed 30.00
600.00 600.00
Date RM Date RM
25/5/2014 Bank 190.00 4/5/2014 Purchases 200.00
Discount Received 10.00 30/5/2014 Purchases 300.00
31/5/2014 Balance c/f 300.00
500.00 500.00
Todds
Zen & Co
Sales Account
1/6/2014 Balance b/f 300.00
Office Furniture Account
Date RM Date RM
31/5/2014 Bank 200.00 31/5/2014 Profit & Loss 200.00
Date RM Date RM
31/5/2014 Bank 475.00
Discount Allowed 25.00
Kenneth
1. The difference between cash term with credit term is cash term is the payment is made or collected immidiately (upon purchase or sale).
Inversely, credit term is means the payment is made or collected at a future date, based on the credit period given, usually is 30 days, 60 days, and 90 days.
2. Trade discount is the percentage reduction granted to a customer from the list price because of purchase in large quantity.
Inversely, cash discount is a percentage reduction granted to the customer in order to encourage paying within a specified period (earlier than the credit period given).
3. Cash in business can be classified in to 3 types. 1st types is cash account which means the cash is on hand for immidiate purpose or operation. E.g: cash in hand.
3rd is petty cash account, it's also means small amount cash payment for any immaterial expenses. E.g: purchase stationery with price RM 89.90.
4. The purpose to preparing a 3 column cash book is to save time and lesser for opening account to make it look more simple and easier to understand.
3 column cash book on debit side is included discount allowed, cash and bank account. Meanwhile, on credit side have discount received, cash and bank account.
8. At the end of the period, the cashier will reimburse the petty cashier the amount of petty cash spent during the period so that the petty cashier will start with the same amount of the petty cash float.
The source documents are the various cash bill, receipts etc. Petty cashier will issue the petty cash voucher and signed by the recipients to acknowledge the receipts of petty cash.
Date Discount Cash Bank
(RM) (RM) (RM)
2/5/2014 Purchase 400.00
2/5/2014 Quit rent & assessment 40.00
10/5/2014 Transportation Fees 12.00
14/5/2014 Stationery 16.00
20/5/2014 Drawings 120.00
24/5/2014 Purchase 28.00
25/5/2014 Payables - Zen & Co 10.00 190.00
28/5/2014 Transportation Fees 10.00
30/5/2014 Bank C 400.00
31/5/2014 Container 5.00
31/5/2014 Office Furniture 200.00
31/5/2014 Payables - Samuel 35.00 665.00
31/5/2014 Balance c/f 289.00 1,950.00
45.00 880.00 3,445.00
Cash Book
Drawings Account
Date RM Date RM
20/5/2014 Cash 120.00 31/5/2014 Balance c/f 120.00
1/6/2014 Balance b/f 120.00
Date RM Date RM
2/5/2014 Bank 400.00 31/5/2014 Profit & Loss 928.00
4/5/2014 Zen & Co 200.00
24/5/2014 Cash 28.00
30/5/2014 Zen & Co 300.00
928.00 928.00
Date RM Date RM
10/5/2014 Cash 12.00 31/5/2014 Profit & Loss 22.00
28/5/2014 Cash 10.00
22.00 22.00
Date RM Date RM
26/5/2014 Sales 450.00 31/5/2014 Balance c/f 450.00
1/6/2014 Balance b/f 450.00
Date RM Date RM
31/5/2014 Cash 5.00 31/5/2014 Balance c/f 5.00
1/6/2014 Balance b/f 5.00
Transportation Fees
Tali
Container Account
Purchases Account
Stationery Expenses Account
Date RM Date RM
14/5/2014 Cash 16.00 31/5/2014 Profit & Loss 16.00
Date RM Date RM
31/5/2014 Bank 665.00
Discount Received 35.00
Samuel
Inversely, credit term is means the payment is made or collected at a future date, based on the credit period given, usually is 30 days, 60 days, and 90 days.
8. At the end of the period, the cashier will reimburse the petty cashier the amount of petty cash spent during the period so that the petty cashier will start with the same amount of the petty cash float.