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How would i do this question in bookkeeping and accounts?

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J singh started a business on the 1st october as a butcher. He had 1600 units in hand which he paid into the business. during october he had the following trabsactions.

1 paid rent in cash -150 units

2 purchased on credit from XYZ meat factory assorted meat valued at 780 units

3 made cash sales at 49 units

4 purchased on credit from feather farm 20 chickens @10 units each

5 sold on credit to highlands hotel 15 kilos @8 units

6 returned 2 chickens to feather farm

8 opened bank account and deposit 1000 units in it

10 highlands hotel returned 3 kilos sausages

12 made cash sales valued at 88 units

15 paid salary to shop assistants in cash 50 units

16 paid by cheque amount owing to XYZ meat factory less 10% discount

17 sold on credit to nippy cafe 10 kilos steak @14 units per kilo

20 bought shop counter for 75 units by check

24 received payment from nippy cafe less 5% discount

26 paid 600 units into bank

28 bought weighing scales for cash

30 withdrew 100 units cash from bank for use in the business

31 paid salary in cash 60 units

Open a cash book a sales book a purchase book a returns inwards book and a returns outwards book for mr singh and make all the necessary entries (in date order) in them. Open a ledger and make all postings to the appropriate accounts (use folios of your own choosing). Balance the cash book at the end of the month and then prepare a trial balance.

Notes 1 study each transaction in date order veru carefully to decide the book in which it is to be entered, make the entry and then make the postings to the appropriate ledger account.

2 cross check all additions and other calculations.

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1 ANSWERS


  1. I shall use $ for units.

    J singh started a business on the 1st october as a butcher. He had 1600 units in hand which he paid into the business

    Dr  Cash $1,600

    Cr  Owner's equity $1,600

    1 paid rent in cash -150 units

    Dr  Rent expense $150

    Cr  Cash $150

    2 purchased on credit from XYZ meat factory assorted meat valued at 780 units

    Dr  Purchases $780

    Cr  Accounts Payable $780

    3 made cash sales at 49 units

    Dr  Cash $49

    Cr  Sales $49

    4 purchased on credit from feather farm 20 chickens @10 units each

    Dr  Purchases $200

    Cr  AP $200

    5 sold on credit to highlands hotel 15 kilos @8 units

    Dr  Accounts Receivable $120

    Cr  Sales $120

    6 returned 2 chickens to feather farm

    Dr  Returns outwards $20

    Cr  AP $20

    8 opened bank account and deposit 1000 units in it

    Dr  Bank $1,000

    Cr  Cash $1,000

    10 highlands hotel returned 3 kilos sausages

    Dr  Returns inwards $24

    Cr  AR $24

    12 made cash sales valued at 88 units

    Dr  Cash $88

    Cr  Sales $88

    15 paid salary to shop assistants in cash 50 units

    Dr  Salaries expense $50

    Cr  Cash $50

    16 paid by cheque amount owing to XYZ meat factory less 10% discount

    Dr  AP $780

    Cr  Purchases $78

    Cr  Cash $702

    17 sold on credit to nippy cafe 10 kilos steak @14 units per kilo

    Dr  AR $140

    Cr  Sales $140

    20 bought shop counter for 75 units by check

    Dr  Shop equipment $75

    Cr  Bank $75

    24 received payment from nippy cafe less 5% discount

    Dr  Cash $133

    Dr  Sales discounts $7

    Cr  AR $140

    26 paid 600 units into bank

    Dr  Bank $600

    Cr  Cash $600

    28 bought weighing scales for cash

    Dr  Shop equipment $??

    Cr  Cash $??

    30 withdrew 100 units cash from bank for use in the business

    Dr  Cash $100

    Cr  Bank $100

    31 paid salary in cash 60 units

    Dr  Salaries expense $60

    Cr  Cash $60

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