CA Foundation · Accounting · Accounts from Incomplete Records
In the Cash and Bank Summary of a trader keeping incomplete records, which of the following would be shown on the payments side?
Cash drawings of the proprietor appear on the payments side of the Cash and Bank Summary because they are an actual outflow of cash. Cash sales and capital introduced are receipts, while discount allowed is a non-cash adjustment and is not recorded in the summary.
- ACash sales realised during the year
- BDiscount allowed to customers
- CDrawings made by the proprietor in cashCorrect
- DAdditional capital brought in by the proprietor
Explanation
A cash and bank summary records only actual cash and bank movements. Drawings in cash are an outflow and appear on the payments side. Cash sales and capital introduced are receipts. Discount allowed is a non-cash item and is not entered in the summary.
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