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how do I go about this? BOOKS OF ORIGINAL OR PRIME ENTRY: GROUP ASSIGNMENT Question One (1) Frankie Bobo, a top Bank executive, started business
how do I go about this?
BOOKS OF ORIGINAL OR PRIME ENTRY: GROUP ASSIGNMENT Question One (1) Frankie Bobo, a top Bank executive, started business on 19 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 GHS'000 Land and Buildings 8,000 Furniture and Fittings 5,000 Motor Vehicle 1,400 Debtors - Koo Fori 800 Apalahara 1,600 Inventory 3,200 Cash in hand 400 Bank Overdraft 2,400 Creditors - Angela 1,000 Debbie 600 The following transactions took place during the month of January 2020. Jan.1 Received a cheque from Apalahara Jan. 2 Sold goods on credit to Maatso Jan. 4 Paid Insurance via a bank transfer Jan. 7 Maatso paid her account in full through the bank Jan. 8 Bought goods for cash Jan. 9 Banked cash Jan. 9 Sold goods for cash Jan. 13 Bought goods on credit from Debbie Jan. 22 Paid salaries via direct debit from the company's bank account Jan. 24 Paid Debbie by cheque the balance due to her at 1 January, less 5% cash discount Jan. 25 Sold goods on credit to Maatso Jan. 26 Paid Angela by cash in full, less 10% discount Jan. 27 Cash sales paid directly to the bank Jan. 29 Bought goods on credit from Debbie Jan. 30 Paid rent and rates by cash GHS 000 1,400 2,400 80 2,300 200 600 1,000 800 100 400 800 1,000 40 Required a) Prepare the opening journal to ascertain the opening capital of Frankie Bobo's 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 2020Step by Step Solution
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