Question

May 1 Started business with a cheque of GHS5,000.

2 Withdrew GHS2,000 cash from bank for business use. 3 Paid rent GHS500 with cash.

4 Bought teaching supplies for GHS50 cash.

5 Paid advertising expense GHS100 by cheque.

9 Bought five text books at GHS50 each with a cheque.

12 Bought fixture of GHS400 from Melcom on credit. 15 Received GHS15,000 cash as tuition fees.

18 Tuition fees owing GHS25,000.

26 Paid salaries for GHS2,500 by cheque.

28 Paid electricity expense GHS150 with cash.

30 Deposited cash of GHS14,000 into bank account.

Required:

1. Journalize the above transactions

2. Post the journal entries to their respective accounts and balance off the accounts

3. Extract the trial balance as at May 31, 2020

4. Enter the relevant transactions into a cashbook and balance off the account

Answer 1

1.Journal entries

Date	Particulars	Debit	Credit
May 1	Bank a/c	5000
	To Capital a/c		5000
	(being business started with bank balance)
May 2	Cash a/c	2000
	To Bank a/c		2000
	(being cash withdrawn from bank)
May 3	Rent a/c	500
	To Cash		500
	(being rent paid with cash)
May 4	Teaching supplies a/c	50
	To cash a/c		50
	(being tecahing supplies bought)
May 5	Advertising expense a/c	100
	To bank a/c		100
	(being advertising expense paid)
May 9	Textbook a/c	250
	To bank a/c		250
	(being 5 textbooks bought)
May 12	Fixture a/c	400
	To melcom a/c		400
	(being fixture bought on credit from melcom)
May 15	Cash a/c	15000
	To tuition fees a/c		15000
	(being tuition fees received)
May 18	Income receivable a/c	25000
	To Tuition fees a/c		25000
	(being tuition fees receivable)
May 26	Salaries a/c	2500
	To Bank a/c		2500
	(being salaries paid)
May 28	Electricity expense a/c	150
	To cash a/c		150
	(being electricity expense paid)
May 30	Bank a/c	14000
	To cash a/c		14000
	(being cash deposited in bank)

2.

Dr.       Capital a/c    Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 30	To balance a/c	5000	May 1	By bank a/c	5000
	Total	5000		Total	5000

Dr.       Bank a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 1	To capital a/c	5000	May 2	By Cash a/c	2000
May 30	To cash a/c	14000	May 5	By advertising expense a/c	100
			May 9	By textbooks a/c	250
			May 26	By salaries a/c	2500
			May 30	By balance c/d	14150
	Total	19000		Total	19000

Dr.       Rent a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 3	To cash a/c	500	May 30	By Profit & loss a/c	500
	Total	500		Total	500

Dr. Teaching Supplies a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 4	To cash	50	May 30	By Profit & loss a/c	50
	Total	50		Total	50

Dr. Advertising expense a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 5	To bank a/c	100	May 30	By Profit & loss a/c	100
	Total	100		Total	100

Dr. Textbook a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 9	To textbooks a/c	250	May 30	By balance c/d	250
	Total	250		Total	250

Dr.       Fixture a/c    Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 12	To melcom a/c	400	May 30	By Balance c/d	400
	Total	400		Total	400

Dr.       Tuition fees a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 30	To Profit & loss a/c	40000	May 15	By cash a/c	15000
			May 18	By income receivable a/c	25000
	Total	40000		Total	40000

Dr.       Salary a/c    Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 26	To bank a/c	2500	May 30	By Profit & loss a/c	2500
	Total	2500		Total	2500

.

Dr.       Electricity a/c     Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 28	To cash a/c	150	May 30	By Profit & loss a/c	150
	Total	150		Total	150

Dr.       Melcom a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 30	To balance c/d	400	May 12	By fixture a/c	400
	Total	400		Total	400

Dr.    Income receivable a/c Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 18	To tuition income a/c	25000	May 30	By balance c/d	25000
	Total	25000		Total	25000

3.

Trial Balance

Particulars	Debit	Credit
Capital a/c	-	5000
Bank a/c	14150	-
Rent a/c	500	-
Teaching supplies a/c	50	-
Advertising expense a/c	100	-
Textbook a/c	250	-
Fixture a/c	400	-
Tuition fees a/c	-	40000
Salary a/c	2500	-
Electricity a/c	150	-
Melcom a/c	-	400
Income receivable a/c	25000	-
Cash a/c	2300	-
Total	45400	45400

4.

Dr.       Cash a/c     Cr.

Date	Particulars	Amount	Date	Particulars	Amount
May 2	To bank a/c	2000	May 3	By rent a/c	500
May 15	To tuition fees a/c	15000	May 4	By teaching supplies a/c	50
			May 28	By electricity expense a/c	150
			May 30	By bank a/c	14000
			May 30	By balance c/d	2300
	Total	17000		Total	17000