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

Question Two (2)

Prepare a three-column cash book of from the transactions below extracted from the books of Nyamedie Enterprise.

April 1: Balances brought forward: Cash GHS1,260; Bank GHS14,820.

April 2: The following paid us by cheque, in each case deducting a 5% cash discount:

Akowuah GHS 960; Nhyira GHS 3,120.

April 3: Cash sales paid direct into the bank GHS 2,220.

April 5: Paid rent by cash GHS1,020.

April 6: We paid the following accounts by cheque, in each case deducting 20% cash

discount: Laura GHS1,080; Ofosu GHS2,880; Karen GHS1,200.

April 8: Withdrew cash from the bank for business use GHS1,200.

April10: Cash sales GHS3,780.

April 12: John paid us their account of GHS840 by cheque less GHS12 cash discount.

April 14: Paid wages by cash GHS1,620.

April 16: We paid the following accounts by cheque: Nyameye GHS930 less cash discount GHS45; Nyametease GHS1,236 less cash discount GHS36.

April 20: Bought fixtures by cheque GHS12,960 and Motor Vehicles GHS4,290 by cash. April 29: Received GHS972 cheque from Akosua.

April 30: Bought stationery paying by cash GHS168.

N.B. ASSUME ALL AMOUNTS ARE STATED IN THOUSANDS OF GHANA CEDIS (GHS 00