Frankie Bobo, a top Bank executive, started business on 1st January 2020 with high hopes of success following a company-wide redundancy exercise which left most employees stranded. Frankie Bobo had a flare for business as he used to sell shirts and other imported items to his colleagues before the redundancy exercise. On the day he officially commenced business, he had the following assets and liabilities which he gathered from his personal savings and support received from a couple of family and friends

Land and Buildings Furniture and Fittings Motor Vehicle Debtors - Koo Fori

Apalahara Inventory

Cash in hand Bank Overdraft Creditors - Angela

Debbie

The following transactions took place during the month of January 2020.

GHS'000 8,000 5,000 1,400 800 1,600 3,200 400 2,400 1,000 600

GHS'000 1,400 2,400 80 2,300 200 600 1,000 800 100

400

800 1,000 40

Jan.1 Jan. 2 Jan. 4 Jan. 7 Jan. 8 Jan. 9 Jan. 9

Jan. 13 Jan. 22 Jan. 24

Jan. 25 Jan. 26 Jan. 27 Jan. 29 Jan. 30

Required

Received a cheque from Apalahara

Sold goods on credit to Maatso

Paid Insurance via a bank transfer

Maatso paid her account in full through the bank Bought goods for cash

Banked cash

Sold goods for cash

Bought goods on credit from Debbie

Paid salaries via direct debit from the company's bank account

Paid Debbie by cheque the balance due to her at 1 January, less 5% cash discount

Sold goods on credit to Maatso

Paid Angela by cash in full, less 10% discount

Cash sales paid directly to the bank

Bought goods on credit from Debbie

Paid rent and rates by cash

a) Prepare the opening journal to ascertain the opening capital of Frankie Bobos business.

b) Enter the above transactions in the books of prime entries

c) Post to the respective ledgers

d) Extract a Trial Balance at the end of the month of January 2020