# CIE Accounting Paper-2: Specimen Questions 27 - 29 of 103

## Passage

The following transactions are shown in the books of Mr. Ringon for the month of January 2007.

Jan 1st Received a cheque from Mr. Fatso to whom goods were sold for £20000, allowed him 1%

Jan 2nd Mr. Fatso’s cheque was deposited in bank

Jan 5th Mr. Fatso‘s cheque was dishonored (bank charges £100)

Jan 8th Mr. Fatso settled his account by means of a cheque £20250, £150 being interest charged.

## Question number: 27 (2 of 5 Based on Passage) Show Passage

### Write in Short

What are the other types of cash book available, which Mr. Ringon can maintain instead of three columnar cash book?

### Explanation

The other types of cash book which are available for Mr. Ringon are as follows:

(i) Single column book: In this type only 1 column for cash is maintained

(ii) Double column book: In this type 2 columns are maintained. One is for cash and the other is for discount

(iii) Three column book: In this 3 columns are present, cash, bank and discount respectively. Mr. Ringon follows this type of cash book.

(iv) Petty cash book: This is to record all petty expenses which are repetitive in nature

## Question number: 28 (3 of 5 Based on Passage) Show Passage

Essay Question▾

### Describe in Detail

Prepare a three columnar cash book, for Mr. Ringon and show how these transactions will be entered.

### Explanation

 DATE PARTICULARS LF DISCOUNT CASH BANK DATE PARTICULARS LF DISCOUNT CASH BANK Jan 1st To Fatso A/c 200 19800 Jan 2nd By bank A/c C 19800 Jan 2nd To Cash A/c C 19800 jan 5th By Fatso A/c 200 19900 Jan 8th To Fatso A/c 20250

Note: £ 19900 include bank charges of £100

£20000 [email protected]%=£200