Here are some transactions in respect of a new business that was started on Day 1:

Required

(a) Make a list of the names of the accounts required to record these transactions.

(b) Write up the transactions in the T-accounts you have identified in part

(a) above:
You will need to create an account for drawings to record the removal from the business of £1,500 by the owner. Drawings are recorded in the account as debit entries.

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2345 Day 1 6 19 Transaction Started business by paying a cheque for 80,000 into the business bank account. Purchase of machinery by cheque 20,000. Purchase of inventory on credit 46,000. Goods are sold for 10,000. The customer pays by cheque. Payment of 30,000 to the supplier of the goods purchased on Day 3. This is a part-payment of the total amount due. Goods are sold on credit for 10,500. 7 The owner of the business writes a cheque to withdraw 3,000 from 8 the business. A business loan of 100,000 is received by cheque.