Business, 02.06.2020 18:58 graciemccain

QUESTION ONE
Mr. Balham started business on July 1, 2019 with a capital of GH¢16,000 cash.
July 2. Opened a bank account with GH¢8,000
July 2. Bought goods costing GH¢1,000 with cheque
July 3. Purchased Shop Fittings on credit from Jupiter Furniture at GH¢5,000
July 5. Bought motor van by cheque GH¢4,000
July 8. Purchased stationery GH¢150 and goods GH¢5,000 by cash
July 17. Paid insurance GH¢100 by cash
July 18. Cash sales made GH¢2,500
July 20. Sent cash of GH¢2,700 to the bank
July 22. Withdrew GH¢1,000 from the bank for personal use
July 25. Paid motor expenses GH¢300
July 28. Cash sales sent to the bank GH¢5,400

Required: Prepare the ledger accounts of Mr. Balham and extract a trial balance.

Answers: 3

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Answers

Answer from: Jasten

a) Ledger Accounts:

1) Capital Account

Debit Credit Balance

Cash GH¢16,000 GH¢16,000

Cash Account

Date Debit Credit Balance

July 1 Capital GH¢16,000 GH¢16,000

July 2 Bank GH¢8,000 GH¢8,000

July 8 Stationery GH¢150 GH¢7,850

July 8 Purchases GH¢5,000 GH¢2,850

July 17 Insurance GH¢100 GH¢2,750

July 18 Sales GH¢2,500 GH¢5,250

July 20 Bank GH¢2,700 GH¢2,550

July 25 Motor Expenses GH¢300 GH¢2,250

3) Bank Account

Date Debit Credit Balance

July 2 Cash GH¢8,000 GH¢8,000

July 2 Purchases GH¢1,000 GH¢7,000

July 5 Motor Van GH¢4,000 GH¢3,000

July 20 Cash GH¢2,700 GH¢5,700

July 22 Drawing GH¢1,000 GH¢4,700

July 28 Sales GH¢5,400 GH¢10,100

4) Purchases Account

Date Debit Credit Balance

July 2 Bank GH¢1,000 GH¢1,000

July 8 Cash GH¢5,000 GH¢6,000

5) Furniture & Fittings Account

Date Debit Credit Balance

July 3 Accounts Payable GH¢5,000 GH¢5,000

6) Accounts Payable

Date Debit Credit Balance

July 3 Furniture & Fittings GH¢5,000 GH¢5,000

7) Motor Van

Date Debit Credit Balance

July 5 Bank GH¢4,000 GH¢4,000

8) Stationery

Date Debit Credit Balance

July 8 Cash GH¢150 GH¢150

9) Insurance

Date Debit Credit Balance

July 17 Cash GH¢100 GH¢100

10) Drawings

Date Debit Credit Balance

July 22 Bank GH¢1,000 GH¢1,000

11) Motor Expenses

Date Debit Credit Balance

July 25 Cash GH¢300 GH¢300

12) Sales Account

Date Debit Credit Balance

July 18 Cash GH¢2,500 GH¢2,500

July 28 Bank GH¢5,400 GH¢7,900

b) Trial Balance as at July 28, 2019:

Debit Credit GH¢ GH¢

Capital 16,000

Cash 2,250

Bank 10,100

Purchases 6,000

Fittings 5,000

Accounts Payable 5,000

Motor Van 4,000

Stationery 150

Insurance 100

Drawings 1,000

Motor Expenses 300

Sales 7,900

Total $28,900 $28,900

Explanation:

a) Ledger Accounts are the financial records of all classes of business transactions, which record the debit and credit sides and extracts balances for preparing the trial balance.

b) Trial Balance is a list of the balances extracted from the ledger. It is a tool for checking if the two sides of the accounts are in balance (equal). It is the basis for adjusting entries and the preparation of the financial statements for a period.

Answer from: Quest

answer is i don't know

Answer from: Quest

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability

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QUESTION ONE
Mr. Balham started business on July 1, 2019 with a capital of GH¢16,000 cash.

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