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Incomplete records

3.5 Cash and bank summaries

It is common for questions on incomplete records to include a summary of the cash
and bank transactions. Such a summary is called a receipts and payments
account. Very often there is a figure missing from the summary. Preparing a ledger
account enables the missing figure to be determined.

This can be simplified using the following ledger accounts.

Cash at bank

Date Details $ Date Details $
01 Jan Balance b/d X In year Cash paid to suppliers X
In year Cash received from X In year Expenses X
customers
In year Bankings from cash at X In year Drawings X
hand
In year Sundry income X 31 Dec Balance c/d X
––– –––
X X

––– –––

Cash at hand
Date Details $ Date Details $

01 Jan Balance b/d X In year Cash purchases X
In year Cash sales X In year Cash expenses X
In year Sundry other receipts X In year Cash banked X
In year Cash drawings X

31 Dec Balance c/d X
––– –––
X X
––– –––

Tutor notes guidance – discussion points

Take students through illustration 1 from chapter 18 of the Study Text.

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