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JSS2: BUSINESS STUDIES – 2ND TERM

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  1. Bank Services | Week 1
    8 Topics
    |
    1 Quiz
  2. Insurance | Week 2
    7 Topics
    |
    1 Quiz
  3. Personal Qualities of an Entrepreneur | Week 3
    1 Topic
    |
    1 Quiz
  4. Business Opportunities | Week 4
    2 Topics
    |
    1 Quiz
  5. Consumer Rights and Responsibilities | Week 5
    2 Topics
    |
    1 Quiz
  6. Shopping Tips | Week 6
    4 Topics
    |
    1 Quiz
  7. Bookkeeping Ethics I | Week 7
    2 Topics
  8. Bookkeeping Ethics II | Week 8
    2 Topics
    |
    1 Quiz
  9. Ledger Entries | Week 9
    3 Topics
    |
    1 Quiz
  10. Petty Cash Book | Week 10
    5 Topics
    |
    1 Quiz



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Lesson 9, Topic 2
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How to Record Cash Received or Payment in the Ledger

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Ordinarily, cash paid out is usually recorded in a special book of accounts called a cash book. The examples below show how cash received and paid out are recorded in the ledger.

Example 1:

2nd August 2016, Cash sales N5,000

Solution:

Dr. Cash A/c
Cr. Sales A/c

posting to a ledger

Note: The business organization received cash of N5,000 as a result of the sales, therefore, cash A/C was debited. If the cash A/C is debited, obviously, the corresponding account should be entered on the credit side of sales to complete double entry.

Example 2

3rd Sept. 2016. Bought a motor van by cash N2,000

Solution:

Dr. Motor Van
Cr. Cash A/C

ledger posting 2

Note: The two accounts opened involved two asset accounts

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