Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mercy started her grocery business on 1 December 2019. The following is a list of her transactions for her first month of trading: 1.12.19 Mercy

Mercy started her grocery business on 1 December 2019. The following is a list of her transactions for her first month of trading:

1.12.19 Mercy opened a business account with 60,000 obtained from private resources.

2.12.19 Mercy paid one months rent of 8,000 by cheque.

3.12.19 Mercy bought goods costing 10,000 on credit from Michael.

4.12.19 Mercy purchased a motor car from General Motors for 12,000 on credit.

5.12.19 Mercy then purchased goods costing 5,000 on credit from Linda.

10.12.19 Mercy made cash sales of 10,000.

15.12.19 Mercy purchased more goods costing 12,000 from Michael on credit

20.12.19 Goods worth 10,000 were sold on credit to Felix.

22.12.19 Mercy returned 2,500 of goods to Michael.

23.12.19 Mercy paid 8,000 in cash into the bank.

24.12.19 Felix returned 2,000 of goods.

25.12.19 Mercy withdrew 1,000 in cash from the bank to open a petty cash account.

26.12.19 Mercy received a cheque from Felix for 6,000. Felix also claimed a cash discount of 1000.

28.12.19 Mercy paid office expenses of 500 out of petty cash.

29.12.19 Mercy sent a cheque to General Motors for 12,000.

30.12.19 Mercy sent cheques to Michael and Linda for 10,000 and 2,000 respectively.

Cash discounts were also claimed from Michael and Linda of 900 and 200,

respectively.

31.12.19 Mercy paid a cheque of 8,000 for another months rent.

31.12.19 Mercy introduced 20,000 additional capital into the business by cheque.

required :

Compile a trial balance as at 1 January 2020 10 marks

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

Essential Bookkeeping And Financial Accounting

Authors: Emile Woolf International

1st Edition

1848437552, 978-1848437555

More Books

Students also viewed these Accounting questions

Question

a. What are you looking for? b. For what are you looking?

Answered: 1 week ago

Question

How to solve maths problems with examples

Answered: 1 week ago