Question

Draw T-account for transactions given below:

Transactions 1: Businessman started his business with $5000 paid into a business bank on 1 Aug 2015.

Transaction 2: The businessman purchase furniture with amount of $600 on credit from TKR4 ltd on 2 Aug 2015.

Transaction 3: The businessman purchases a PC computer with a cheque for $600 on 3 Aug 2015.

Transaction 4: The businessman pays TKR4 ltd $200 by cheque on 4 Aug 2015.

Transaction 5: The businessman borrows $4,000 on loan from a bank on 5 Aug 2015. The money is paid into the business bank account.

Answer 1

• All working forms part of the answer
• Left side of each T account is DEBIT side, right side of each T account is CREDIT side.

Cash
Capital [Transaction 1]	$              5,000.00	Computer [transaction 3]	$               600.00
Bank Loan [transaction 5]	$              4,000.00	Accounts payable [transaction 4]	$               200.00
		Ending Balance	$            8,200.00
Total	$              9,000.00	Total	$            9,000.00
Furniture
Accounts payable [Transaction 2]	$                 600.00	Ending Balance	$               600.00
Total	$                 600.00	Total	$               600.00
Accounts payable
Cash [trasnaction 4]	$                 200.00	Furniture [transaction 2]	$               600.00
Ending Balance	$                 400.00
Total	$                 600.00	Total	$               600.00
Computer
Cash [Transaction 3]	$                 600.00	Ending balance	$               600.00
Total	$                 600.00	Total	$               600.00
Bank Loan
Ending balance	$              4,000.00	Cash [Trasnaction 5]	$            4,000.00
Total	$              4,000.00	Total	$            4,000.00