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Part A Mr. Yannick has started business as a trader on 1 October 2019. The following transactions and events of trading for his first month
Part A Mr. Yannick has started business as a trader on 1 October 2019. 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 $20,000 into a business bank account. 2 He pays rent for a shop, $200 in cash. He purchases delivery van for $1,000 paid in cash. He purchases goods costing $5,000 on credit from Adam (invoice no Adam123). He sells goods for $5,000 in cash to John. He sells goods for $3,000 on credit to Jack (invoice no Jack001) He pays the amount, taking advantage of a 10% settlement discount with respect to invoice no. Adam 123. 25 Jack paid to Mr. Yannick, taking advantage of a 5% settlement discount with respect to invoice no. jack001. 28 He pays energy bill, $600 in cash. 30 He sells goods for $2,500 in cash. Required: I- 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 31,2019. [Marks: (10+10+6)=26]
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