BUSINESS FINANCE ASSIGNMENT 1

QUESTION 1

Record the following transactions for the month of January of a small fishing retailer, balance off all the ledger accounts, and then extract a trial balance as at 31 st January 2011. Jan 1 Jan 2 Jan 3 Jan 4 Jan 5 Jan 6 Jan 8 Jan 10 Jan 11 Jan 14 Jan 15 Jan 16 Jan 18 Jan 21 Jan 24 Jan 26 Jan 29 Jan 30 Jan 30 started in business with 10500 cash. put 9000 of the cash into bank account. Bought goods for cash 550. Bought goods on credit: T Dry 880; M Smith 160;G Low 510. Bought stationery on credit from Buttons ltd 89. Sold goods on credit to: R Tong 170;L Fish 240 ;M Singh 326;a tom 204. Paid rent by cheque 220 Bought fixtures on credit from chiefs ltd 610. Paid salaries in cash 790. Returned goods to: F Hood 30; M Smith 42. Bought van by cheque 6500. Received loan from B Barclay by cheque 2000. Goods returned to us by: R Tong 5; M Singh 20. Cash sales 145. Sold goods on credit to: L Fish 130;A Tom 410 we paid the following by cheque: F Hood 900; M Smith 118. Received cheques from R Pleat 158; L. Fish 370 received a further loan from B Barclay by cash 500 received 614 cash from A Tom.

ANSWER
Capital a/c

Bal c/d

10,500

1 Jan cash

10,500

Cash a/c

1 Jan capital 21 Jan sales 30 Jan A. Tom

10500 145 614

2 Jan bank 3 Jan purchases

9000 550 790 10340

11 Jan salaries

Bal b/d 11,259 11,259

919

Bank a/c

2 Jan cash 8 Jan rent

9000 220

15 Jan Van 16 Jan B. Barclay 26 Jan F.Hood

6500 2000 900 118 9518

29 Jan L. Fish 29 Jan R. Pleat 30 Jan B. Barclay

370 158 500 ________ 10,248

26 Jan M. Smith

Bal b/d

730

10,248

Purchases a/c

3 Jan Cash

550

Bal c/d

2100

4 Jan T. Dry 880 4 Jan M.Smith 160 4 Jan G. Low 510 _____ 2,100 _____ 2,100

T. Dry a/c

Bal c/d

880

4 Jan purchases

880

M. Smith a/c

14 Jan Return outwards 26 Jan bank ____ 160

42 118

4 Jan purchases 160

____ 160

G. Low a/c

Bal c/d 510

4 Jan purchases

510

Stationery a/c

5 Jan Buttons ltd 89

Bal c/d

89

Buttons a/c Bal c/d 89 5 Jan stationery 89

Sales a/c

Bal c/d

1625 6 Jan 6 jan 6 Jan

R.Tong L. Fish 240

170

M. Singh 6 Jan

326 A. Tom cash 130 A. Tom 410 _______ 1625 204 145

21 Jan 24 Jan L. Fish 24 Jan ______ 1625

R. Tong a/c 6 Jan 5 BAL C/D 170 L. Fish a/c 6 Jan sales 240 29 Jan Bank 370 24 Jan sales 130 170 sales 170 18 JAN Ret. Inwards

___ 370

___ 370

M. Singh a/c 6 Jan sales 326 18 Jan return Inwards 20

Bal c/d _____ 326

306 _____ 326

A.Tom a/c 6 Jan sales 204 410 ________ 614 30 Jan Cash 614

24 Jan Sales ________ 614

Rent a/c Bal c/d 220 8 Jan Bank 220

Fixtures a/c 10 Jan Chiefs Ltd 610 Bal c/d 610

Chiefs Ltd a/c Bal c/d 610 10 Jan Fixtures 610

Salaries a/c Bal c/d 790 11 Jan cash 790

F. Hood a/c 14 Jan Return outwards 30 26 Jan Bank 900

Bal c/d ____ 930 ____ 930

Return outwards a/c 14 Jan F. Hood 30 14 Jan M. Smith 42 Bal c/d ____ ____

72

72

Van a/c 15 Jan Bank 6500 Bal c/d 6500

B. Barclay a/c 16 Jan Bank 2000 Bal b/d ______ 2000 30 Jan Bank 1500 ______ 2000 500

Return Inwards a/c 18 Jan 18 Jan R.Tong M. Singh 5 20 Bal c/d _____ 25 _____ 25

R. Pleat a/c Bal c/d 158 29 Jan Bank 158

Small Fishing Retailer Trial balance As at 31st January 2011

Capital Cash 919

10500

Bank Purchases T. Dry G. Low

730 2100 880 510

Stationery Buttons Sales R. Tong M. Singh Rent Fixtures Chiefs Salaries F. Hood R. Outwards

89 89 1625 165 306 220 610 610 790 930 72

Van B. Barclay R. Inwards R. Pleat _________

6500 1500 25 158 _________ 14664 14664