Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mr. Youssef has started business as a trader on 1 October 2017. The following transactions and events of trading for his first month are as
Mr. Youssef has started business as a trader on 1 October 2017. The following transactions and events of trading for his first month are as follows: Date Transaction 1 He sets up a business as a sole trader by introducing $200,000 into a business bank account. 2 He pays rent for a shop, $2,000 in cash. 8 He purchases delivery van for $14,000 paid in cash. 10 He purchases goods costing $65,000 on credit from Adam (invoice no Adam123). 12 He sells goods for $85,000 in cash to John. 15 H e sells goods for $35,000 on credit to Jack (invoice no Jack001) 16 He paid $5,000 van insurance. 24 He pays the amount, taking advantage of a 10% settlement discount with respect to invoice no. Adam123. 25 Jack paid to Mr. Youssef, taking advantage of a 5 % settlement discount with respect to invoice no. jack001. 28 He pays energy bill, $260 in cash. 30 He sells goods for $25,000 in cash. Required: 1- Enter the above transactions into an appropriate cash book. 2- Post the transactions directly to the appropriate nominal ledger accounts. 3- Prepare the trial balance as at October 31, 2017
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started