Question

Record the following transactions for the month of January of a small finishing retailer, balance off all the accounts, and then extract a trial balance as at 31 January 20X8: 20X8

Jan 1 Started in business with £10,500 cash.

2 Put £9,000 of the cash into a bank account.

3 Bought goods for cash £550.

4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.

5 Bought stationery on credit from Buttons Ltd £89.

6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.

8 Paid rent by cheque £220.

10 Bought fixtures on credit from Chiefs Ltd £610.

11 Paid salaries in cash £790.

14 Returned goods to: F Hood £30; M Smith £42.

15 Bought van by cheque £6,500.

16 Received loan from B Barclay by cheque £2,000.

18 Goods returned to us by: R Tong £5; M Singh £20.

21 Cash sales £145.

24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat £158.

26 We paid the following by cheque: F Hood £900; M Smith £118.

29 Received cheques from: R Pleat £158; L Fish £370.

30 Received a further loan from B Barclay by cash £500.

30 Received £614 cash from A Tom.

Answer 1

Recording of transactions in T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Cash a/c
1-Jan	10500	2-Jan	9000
21-Jan	145	3-Jan	550
30-Jan	500	11-Jan	790
30-Jan	614	CB	1419
Bank a/c
2-Jan	9000	8-Jan	220
16-Jan	2000	15-Jan	6500
29-Jan	528	26-Jan	1018
		CB	3790
Capital a/c
		1-Jan	10500
Inventory a/c
3-Jan	550	CB	2950
4-Jan	2400
AP a/c
14-Jan	72	4-Jan	2400
26-Jan	1018	5-Jan	89
CB	2009	10-Jan	610
Stationery a/c
5-Jan	89
Sales revenue a/c
CB	1783	6-Jan	940
		21-Jan	145
		24-Jan	698
AR a/c
6-Jan	940	18-Jan	25
24-Jan	698	29-Jan	528
		29-Jan	614
		CB	471
Rent a/c
8-Jan	220
Furniture and Fixtures a/c
10-Jan	610
Salary a/c
11-Jan	790
Inventory return a/c
		14-Jan	72
Van a/c
15-Jan	6500
Loan a/c
CB	2500	16-Jan	2000
		30-Jan	500
Sales return a/c
18-Jan	25

Trial Balance:
Accounts Title	Debit	Credit
Cash	1419
Bank	3790
Inventory	2950
Stationery	89
AR	471
Fixtures	610
Van	6500
AP		2009
Loan		2500
Capital		10500
Sales revenue		1783
Sales return	25
Rent expense	220
Salary expense	790
Inventory return		72
Total	16864	16864