Question
In: Accounting
Transaction analysis and Financial Statements After several months of planning, Ms. Gyamfua Boakye started Keep Safe...
Transaction analysis and Financial Statements
After several months of planning, Ms. Gyamfua Boakye started Keep
Safe Shop which is into
buying and selling the supplies of Covid-19. The following
transactions occurred during the first
month.
Jun. 1 Started business with a cheque of GH₵17,000, cash of
GH₵3,000.
2. Bought a shop for GH₵6,000 cheque.
3 Purchased fixtures and fittings for GH₵1,300 with cheque.
4 Bought nose masks for GH₵2,000 with cheque and carriage for GH₵50
cash.
5 Advertising expense GH₵100 paid by cash.
9 Bought face shields for GH₵1,500 and carriage GH₵30 with
cash.
12 Bought nose masks GH₵3,200 and face shields GH₵6,000 from Combat
Technology Ltd
on credit.
15 Sold nose mask for GH₵4,600 cash and face shield for 6,500
cheque.
16 Deposited GH₵1,000 cash into the bank.
20 Paid Combat Technology Ltd GH₵7,000 cheque and received a
discount of GH₵700.
23 Ms. Boakye took GH₵250 cash for personal use.
25 Paid salaries for GH₵500 by cheque.
26 Paid electricity expense GH₵80 by cash.
27 Sold nose masks and face shield on credit to Nana Yaa at
GH₵5,600.
28 Nana Yaa returned some of the face shield due to damages
GH₵600.
30 Received a cheque of GH₵4,600 from Nana Yaa and her allowance of
GH₵460.
Required:
a. Journalize the above transactions
b. Post the journal entries to their respective accounts and
balance off the accounts
c. Extract the trial balance as at June 30, 2020
d. Prepare the Income Statement for the period ended June 30,
2020
e. Prepare the Statement of Financial Position as at June 30,
2020
Solutions
Expert Solution
a)
| Journal Entry | |||
| Date | Particulars | Amount Dr | Amount Cr |
| Jun-01 | Cash A/c | 3000 | |
| Bank A/c | 17000 | ||
| To Capital A/c | 20000 | ||
| Jun-02 | Shop A/c | 6000 | |
| To Bank A/c | 6000 | ||
| Jun-03 | Fixture and fittings A/c | 1300 | |
| To Bank A/c | 1300 | ||
| Jun-04 | Purchase A/c | 2000 | |
| Carriage Inwards | 50 | ||
| To cash | 2050 | ||
| Jun-05 | Advertising Exp. A/c | 100 | |
| To Cash | 100 | ||
| Jun-09 | Purchase A/c | 1500 | |
| Carriage Inwards | 30 | ||
| To Cash | 1530 | ||
| Jun-12 | Purchase A/c | 9200 | |
| To Combat Technologies | 9200 | ||
| Jun-15 | Cash A/c | 4600 | |
| Bank A/c | 6500 | ||
| To Sales | 11100 | ||
| Jun-16 | Bank A/c | 1000 | |
| To Cash | 1000 | ||
| Jun-20 | Combat Technology A/c | 7700 | |
| To Bank | 7000 | ||
| To Discount received | 700 | ||
| Jun-23 | Cash A/c | 250 | |
| To Drawings | 250 | ||
| Jun-25 | Salaries A/c | 500 | |
| To Bank A/c | 500 | ||
| Jun-26 | Electricity Exp. A/c | 80 | |
| To cash | 80 | ||
| Jun-27 | Nana Yaa A/c | 5600 | |
| To Sales | 5600 | ||
| Jun-28 | Sales A/c | 600 | |
| To Nana Yaa A/c | 600 | ||
| Jun-30 | Bank A/c | 4600 | |
| Discount A/c | 460 | ||
| To Nana Yaa A/c | 5060 |
b) :Ledger Account
| Cash A/c | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Jun-01 | To Capital A/c | 3000 | Jun-04 | Purchase A/c | 2000 |
| Jun-15 | To Sales | 4600 | Carriage Inwards | 50 | |
| Jun-23 | To Drawings | 250 | Jun-05 | Advertising Exp. A/c | 100 |
| Jun-09 | Purchase A/c | 1500 | |||
| Jun-09 | Carriage Inwards | 30 | |||
| Jun-16 | Bank A/c | 1000 | |||
| Jun-26 | Electricity Exp. A/c | 80 | |||
| Jun-30 | By Bal. c/d | 3090 | |||
| Total | 7850 | Total | 7850 | ||
| Bank A/c | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Jun-01 | To Capital A/c | 17000 | Jun-02 | Shop A/c | 6000 |
| Jun-15 | To Sales | 6500 | Jun-03 | Fixture and fittings A/c | 1300 |
| Jun-16 | To Cash | 1000 | Jun-20 | Combat Technology A/c | 7000 |
| Jun-30 | To Nana Yaa A/c | 4600 | Jun-25 | Salaries A/c | 500 |
| Jun-30 | By Bal. c/d | 14300 | |||
| Total | 29100 | Total | 29100 | ||
| Purchase A/c | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Jun-04 | To cash | 2000 | |||
| To Cash | 1500 | ||||
| To Combat Technologies | 9200 | ||||
| Jun-30 | By Bal. c/d | 12700 | |||
| Total | 12700 | Total | 12700 | ||
| Sales A/c | |||||
| Date | Particulars | Amount | Date | Particulars | Amount |
| Jun-28 | To Nana Yaa A/c | 600 | Jun-15 | Cash A/c | 4600 |
| Bank A/c | 6500 | ||||
| Jun-27 | Nana Yaa A/c | 5600 | |||
| Jun-30 | By Bal. c/d |
16100
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