Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Adnan has started as a sole trader on 1 March 2018. The following transactions and events of trading for his first month are as

image text in transcribed
image text in transcribed
a. Adnan has started as a sole trader on 1 March 2018. The following transactions and events of trading for his first month are as follows: Date Transaction 1 He started the business by depositing a cheque for $250,000 into the business bank account. 2 He purchases machinery worth $20,000 by cheque. He purchases inventory on credit for $6,000. 10 He sells good for $8,000 in cash. 12 He pays $3,000 to the supplier of the goods purchased on 8th March. This is the part of payment of the total amount due. 15 He sells goods on credit for $17,000. 24 Owner withdrew of worth $2,000 for personal use. 25 He borrows money from his friend of $100,000. Required: 1- Post the transactions directly to the appropriate nominal ledger accounts. 2- Prepare the trial balance as at March 31, 2018. [Marks: (18+6)=24]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Business Risk Approach

Authors: Larry E. Rittenberg, Karla Johnstone, Audrey Gramling

7th Edition

0324663722, 978-0324663723

More Books

Students also viewed these Accounting questions

Question

Do neural networks process information sequentially? Explain.

Answered: 1 week ago