The following events occurred in Obiamaka Ndu & Sons Enterprises during October 2019.
i. Obiamaka Ndu introduces ₦700,000 cash into the enterprise on October 2. On the same date, Obiamaka Ndu deposits ₦400,000 in the bank account that was opened for the business.
ii. On October 10, Mr. Roy paid ₦450,000 by cheque.
iii.On October 12, the business received a credit alert of ₦120,000 in the bank account with SAFE Bank Ltd. The deposit was from Mrs. Save.
iv. The business paid transport expenses in cash ₦2,000 on October 13.
v. On October 13, the business sold inventory amounting to ₦225,000 for cash.
vi. On October 15, the business paid Mr. Okoro through a bank transfer of ₦260,000. The amount was for the complete payment of the debt of ₦265,000 owed by the business.
vii. On October 28, the business paid salaries amounting to ₦29,000 using cash.
viii. On October 29, Mrs. Blessing who is a customer paid her debt of ₦300,000 less 2.5 percent cash discount. A credit alert was received in the account with SAFE Bank Ltd.
ix. As of October 30, suppliers namely PNT & Sons Enterprises, Community Wellness, Pet n Calm Business Ltd were owed ₦350,000, ₦50,000, and ₦250,000, respectively.
On 30 October, the following economic events took place:
a. PNT & Sons Enterprises was paid by bank transfer less 2 percent cash discount.
b. Community Wellness was paid by bank transfer less 3 percent cash discount.
c. Pet n Calm Business Ltd was paid by bank transfer less 2 percent cash discount.
Required: Prepare a three-column cash book for October 2019.
A suggested answer to practice Activity 2.7
Obiamaka Ndu & Sons Enterprises
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