Reference no: EM132636267

Mr DLC has been in business for many years as sole trader. His cash at hand on 1st October, 2018 was N750,000 but there was no bank account.

The following transactions took place during the month of October, 2018.

Oct 1 Opened bank account and paid in cash N750,000

Oct 4 Rented premises and paid for 2 months by cheque N30,000

Oct 7 Bought furniture and fitting by cheque N90,000

Oct 11 Purchased goods for sale by cheque N120,000

Oct 14 Cash sales N525,000

Oct 16 Received cheque from Badmus on account of September sales N123,000

Oct 19 Paid cash into bank N190,000

Oct 20 Purchased goods from Gabriel & sons on credit N150,000

Oct 20 Cash sales N111,250

Oct 26 Paid cash into bank N111,250

Oct 28 Sold goods on credit to Stephens & co N270,000

Oct 29 Paid Gabriel & sons on account by cheque N75,000

Oct 30 Paid salaries by cash N81,550

Oct 30 Paid electricity bill by cheque N13,500

Oct 31 Paid sundry expenses by cash N6,000

Required:

Problem 1: Prepare the two-column cash book of Mr DLC Enterprises for the month of October 2018.