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Hi, I need help with this accounting question, May 2 QUESTION ONE Mr Jared Onyach commenced trading as a wholesaler stationer on 1 May 2010
Hi, I need help with this accounting question,
May 2 QUESTION ONE Mr Jared Onyach commenced trading as a wholesaler stationer on 1 May 2010 with a capital of Shs. 50,000.00 with which he opened a bank account for his business. During May the following transactions took place. May 1 Bought shop fittings from store fitments Ltd. Paid via cheque Shs.2,000.00 Purchased goods on credit from Abel Shs.650.00 May 4 Sold goods on credit to Bruce Shs.700.00 May 9 Purchased goods on credit from Green Shs.300.00 May 11 Sold goods on credit to Hill Shs.580.00 May 13 Cash sales paid into bank account Shs.200.00 May 16 Received cheque from Bruce in settlement of his account May 17 Purchased goods on credit from Kay Shs.800.00 May 18 Sold goods on credit to Nailor Shs.360.00 May 19 Sent Cheque to Abel in settlement of his account May 20 Paid rent by cheque Shs.200.00 May 21 Paid delivery expenses by cheque Shs.50.00 May 24 Received from Hill a cheque of Shs.200.00 on account May 30 Drew cheque for personal expenses Shs.200.00 and assistant wages Shs.320.00 May 31 Settled the account of Green. Required a) Record the transactions in the books of prime entry journals). 10 marks b) Post the entries in the ledger accounts 10 marks C) Balance the ledger accounts where necessary Extract a trial balance as at 31 May 2000. (10 marks)
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