Question

STEP 1 Transactions

Select a business of your own choice and make up at least 15 transactions of your own choice. These transactions should focus on Cash Receipts, Cash Payments, Sales, Purchases, Sales Returns, Purchases Returns and General transactions.

STEP 2 Source Documents

For each of the transaction that you have selected, identify the source document used.

Step 3 Journals

Post the 15 transactions selected in step 1 into the 7 journals that you have learnt.

Step 4 T-Form Ledger Accounts

Post the entries from the Journals to the ledger. You are required to make all the ledger accounts.

Step 5 Trial Balance

From all the Ledger Accounts Prepared in Step 4, extract a Trial Balance.

Answer 1

Answer :

STEP 1 Transactions

STEP 2 Source Documents

STEP 3 Journals

	Date	Accounting Title and Explanations	Debit	Credit
1	1/1/2019	Bank	$20,000
		Nancy Capital		$20,000
		(Being entry for capital introduced $ 20,000 in cash to business)
2	1/5/2019	Furniture and Fittings	$3,500
		Bank		$3,500
		(Being entry for office furnitures and fittings of $ 3,500 bought)
3	1/6/2019	Purchases	$4,500
		Bank		$4,500
		(Being entry for cloths purchased from Merrico & Co. for cash $ 4,500)
4	1/9/2019	Purchases	$9,650
		Accounts payable		$9,650
		(Being entry for cloths purchased from Gidko Ltd for $ 9,650 on credit )
5	1/12/2019	Accounts Receivables	$3,700
		Sales		$3,700
		(Being entry for goods sold on credit to Mr. John Davis for $ 3,700 )
6	1/15/2019	Accounts payable	$3,550
		Purchase Return		$3,550
		(Being entry for goods returned worth $ 3,550 to Gidko Ltd)
7	1/16/2019	Sales Return	$1,500
		Account Receivables		$1,500
		(Being entry for sold goods returned by Mr. John davis worth $ 1,500 due to some damage)
8	1/17/2019	Accounts payable	$6,100
		Bank		$6,100
		(Being entry for full cash settlement made to Gidko Ltd with respect to purchases made)
9	1/18/2019	Bank	$2,156
		Discount Allowed	$44
		Accounts Receivables		$2,200
		(Being entry for cash received from John Davis and discount of 2 % was allowed)
10	1/20/2019	Office stationery	$750
		Bank		$750
		(Being entry for purchase of Office stationery worth $ 750)
11	1/25/2019	Accounts Receivables	$3,400
		Sales		$3,400
		(Being entry for goods sold to Diva & Co for $3,400 on credit )
12	1/28/2019	Purchases	$6,400
		Accounts payable		$6,400
		(Being entry for garments purchased from Gidko Ltd for $6,400 on credit )
13	1/31/2019	Salary Expense	$2,500
		Bank		$2,500
		(Being entry for payment of salary to employee Ms. Sara $ 2,500 for the month)
14	1/31/2019	Utilities Expense	$570
		Bank		$570
		(Being entry for payment of Electricity bill of $ 570)
15	1/31/2019	Depreciation Expense	$350
		Accumulated Depreciation - Furniture and Fittings		$350
		(Being entry for Depreciation charged at 10% on Furniture and fittings)

STEP 4 T-Form Ledger Accounts

Bank
Date	Account	$	Date	Account	$
1/1/2019	Nancy Capital	20,000	1/5/2019	Furniture and Fittings	3,500
1/18/2019	Account Receivables	$2,156	1/6/2019	Purchases	4,500
			1/17/2019	Accounts payable	$6,100
			1/20/2019	Office stationery	$750
			1/31/2019	Salary Expense	$2,500
			1/31/2019	Utilities Expense	$570
			1/31/2019	Balance c/f	4,236
		22,156			22,156
Nancy Capital
Date	Account	$	Date	Account	$
			1/1/2019	Bank	20,000
Furniture and Fittings
Date	Account	$	Date	Account	$
1/5/2019	Bank	3,500
Purchases
Date	Account	$	Date	Account	$
1/6/2019	Bank	4,500
1/9/2019	Accounts payable	9,650
1/28/2019	Accounts payable	$6,400
		20,550
Sales
Date	Account	$	Date	Account	$
			1/12/2019	Accounts Receivables	$3,700
			1/25/2019	Accounts Receivables	$3,400
					7,100
Purchase Return
Date	Account	$	Date	Account	$
			1/15/2019	Accounts payable	$3,550
Discount Allowed
Date	Account	$	Date	Account	$
1/18/2019	Account Receivables	$44
Accounts Payable
Date	Account	$	Date	Account	$
1/15/2019	Purchase Return	3550	1/9/2019	Purchases	9,650
1/17/2019	Bank	$6,100	1/28/2019	Purchases	$6,400
1/31/2019	Balance c/f	6,400
		16,050			16,050
Accounts Receivables
Date	Account	$	Date	Account	$
1/12/2019	Sales	3700	1/16/2019	Sales Return	$1,500
1/25/2019	Sales	$3,400	1/18/2019	Bank	$2,156
			1/18/2019	Discount Allowed	$44
			1/31/2019	Balance c/f	3,400
		7,100			7,100
Sales Return
Date	Account	$	Date	Account	$
1/16/2019	Account Receivables	$1,500
Utilities Expense
Date	Account	$	Date	Account	$
1/31/2019	Bank	$570
Office Stationery
Date	Account	$	Date	Account	$
1/20/2019	Bank	$750
Salary Expense
Date	Account	$	Date	Account	$
1/31/2019	Bank	$2,500
Depreciation Expense
Date	Account	$	Date	Account	$
1/31/2019	Accumulated Depreciation - Furniture and Fittings	$350
Accumulated Depreciation - Furniture and Fittings
Date	Account	$	Date	Account	$
			1/31/2019	Depreciation Expense	$350

STEP 5 - Trial Balance