Analysed Cash Book of Keith 02 Jun Rent 04 Jun Electricity 100 04 Jun Bus
500 500 30 5
500
30 Jun Balance c/d 400 1,120
20 60 5
600 100 1,120 500 01 Jul Balance b/d 400
1. The figure in the total column is €1,120. 2. The balance is the difference between the larger and the smaller side of the total columns (€400). This time the balance c/d on the debit side and balance b/d is on the credit side. This means that Keith is overdrawn. Note: only balance the total column and add up the other columns.
Recommendations 1. Income: Keith could try to increase his income by working a second job/doing part-time work.
2. Expenditure: Keith could decrease his expenditure. He could decide not to go to the concert and sell the ticket instead.
3. Loan: Keith could take out a bank overdraft to cover his shortfall in cash. Think IT!
What action would you recommend Keith takes to reduce his spending and help his balance?
30 30
Credit Side
Date 2023 Details Total € Wages Birthday Date 2023 Details Total € Rent Electricity Transport Legal fees Phone Other 01 Jun Balance b/d 06 Jun Wages 19 Jun Birthday
5
05 Jun Law library membership
10 Jun Phone bill 15 Jun Concert ticket 15 Jun Bus ticket
5 10 500 20 60 500 20 60
Examination Tip
Make sure to refer to the person given in the question (Keith) and their circumstances.