Question

Your first rotation is in the Finance Department. The Finance Manager responsible for this rotation wants to assess your capability for controlling a department’s finances responsibly and effectively. You are given a list of journal entries coming from a bar on a cruise ship for February of this year. The descriptions and amounts are as follows: - 1st February, purchase foods from Kate’s Kitchen (new food supplier, 30 days credit) £5,001; buy wines and spirits from Harry (our long-running drinks supplier, we have good credit) £29,552; 3rd February – end of week 1 – sales of beverages £11,203; sales of food £1,824; 6th February - pay off Kate’s account in full by bank transfer; 10th February – end of week 2 – beverage sales £8,966, food sales £1,687; 14th February – Valentine’s party – private room hire and catering for Meganne £2,008; received payment in full from her debit card same day; 17th February – end of week 3 - beverage sales £11,710, food sales £1,611; pay off Harry; 22nd February – place further order for food from Kate (to be delivered at next port); 24th February – end of week 4 - sales of beverages for week £10,614, food sales £1,715. You are told to prepare Ledger Accounts and a Trial Balance. You should; - use double-entry bookkeeping to record the various sales and purchase transactions correctly in a general ledger, in line with accepted accounting principles; complete and balance off the ledger accounts; and produce an accurate trial balance.

Answer 1

Kate's Account
Date	Particulars	Amount	Date	Particulars	Amount
2/6/2019	Payment made through Bank transfer	5,001.00	2/1/2019	Purchase of Food	5,001.00
Total		5,001.00	Total		5,001.00

Harry's Account
Date	Particulars	Amount	Date	Particulars	Amount
2/17/2019	Payment made through Bank transfer	29,552.00	2/1/2019	Purchase of Wines and Spirits	29,552.00
Total		29,552.00	Total		29,552.00

Cash/Bank Account
Date	Particulars	Amount	Date	Particulars	Amount
2/3/2019	Revenue from sale of Beverages	11,203.00	2/6/2019	Payment to Kate	5,001.00
2/3/2019	Revenue from sale of food	1,824.00	2/17/2019	Payment to Harry	29,552.00
2/10/2019	Revenue from sale of Beverages	8,966.00
2/10/2019	Revenue from sale of food	1,687.00
2/14/2019	Revenue from Room hire and catering for Meganne	2,008.00
2/17/2019	Revenue from sale of Beverages	11,710.00
2/17/2019	Revenue from sale of food	1,611.00
2/24/2019	Revenue from sale of Beverages	10,614.00
2/24/2019	Revenue from sale of food	1,715.00
			2/28/2019	Balance c/f	16,785.00
Total		51,338.00	Total		51,338.00

Purchase Account
Date	Particulars	Amount	Date	Particulars	Amount
2/1/2019	Purchase of Food	5,001.00
2/1/2019	Purchase of Wines and Spirits	29,552.00
			2/28/2019	Balance c/f	34,553.00
Total		34,553.00	Total		34,553.00

Sales Account
Date	Particulars	Amount	Date	Particulars	Amount
			2/3/2019	Revenue from sale of Beverages	11,203.00
			2/3/2019	Revenue from sale of food	1,824.00
			2/10/2019	Revenue from sale of Beverages	8,966.00
			2/10/2019	Revenue from sale of food	1,687.00
			2/14/2019	Revenue from Room hire and catering for Meganne	2,008.00
			2/17/2019	Revenue from sale of Beverages	11,710.00
			2/17/2019	Revenue from sale of food	1,611.00
			2/24/2019	Revenue from sale of Beverages	10,614.00
			2/24/2019	Revenue from sale of food	1,715.00
2/28/2019	Balance c/f	51,338.00
Total		51,338.00	Total		51,338.00

Trail Balance for the Period February 2019
Particulars	Debit	Credit
Purchase Account	34,553.00
Sales Account		51,338.00
Cash/Bank Account	16,785.00
Total	51,338.00	51,338.00