POA Chapter 8 Cash

Cash at bank is an/a _____.

• Current asset

• Non-current asset

• Current liability

• Non-current liability

Cash in hand is a/an _____.

• Current asset

• Non-current asset

• Current liability

• Non-current liability

Keyword for cash at bank account:

• cash

• cheque

• on credit

Keyword for cash in hand account:

• cheque

• bank transfer

• cash

On 1 January 2022, the business paid credit supplier- James $1 000 using cheque.

• Dr Trade payable- James $1 000

  Cr Cash in hand $1 000

• Dr Trade payable- James $1 000

  Cr Cash at bank

  $1 000

• Dr Cash in hand

  $1 000

  Cr Trade payable- James $1 000

• Dr Cash at bank

  $1 000

  Cr Trade payable- James $1 000

On 1 January 2020, the business received $500 from credit customer Joanne using bank transfer.

• Dr Cash in hand

  $500

  Cr Trade receivables- Joanne

  $500

• Dr Cash at bank

  $500

  Cr Trade receivables- Joanne

  $500

• Dr Trade receivables- Joanne

  $500

  Cr Cash in hand

  $500

• Dr Trade receivables- Joanne

  $500

  Cr Cash at bank

  $500

A trade discount is a _________.

• reduction off list price

• reduction off invoiced price

A cash discount is a ________.

• reduction off list price

• reduction off invoiced price

On 3 March 2022, the business paid credit supplier Jem $500 cheque, in full settlement of amount owing $550.

• Dr Trade payable- Jem $500

  Cr Cash at bank

  $500

• Dr Trade payable- Jem $550

  Cr Cash at bank

  $500

  Cr Discount received

  $50

On 5 March 2022, the business received a cheque $800 from credit customer Adora, in full settlement of debt owing $880.

• Dr Cash at bank

  $800

  Dr Discount allowed

  $80

  Cr Trade receivable- Adora

  $880

• Dr Cash at bank

  $880

  Cr Trade receivable- Adora

  $880