Question 2

J. Bank is a sole Trader started his business January 1 2022. You are being asked to enter the following transactions in the ledger by means of double entry and extra a Trial Balance as at that date (marks 20)

Jan 1 Started business with $35,000 cash in the bank and $30,000 cash in hand

Bought machinery $8000, furniture $3000, and fittings $2000 by cheque

Bought goods for resale $4000 by cheque

Bought goods on credit from T. Lassalle $2400. Paid for stationary $300 cash

Sold good on credit to A Pontian $1200 and J Joplin $1600

Cash sales $900

A. Pontian returned good $180

J. Bank withdrew $2000 cash for his personal use

Bought calculator $2000 and computer $3700 both by cheque

Purchased goods for resale $3000 by cheque

Cash sales $2400. Deposited $2000 cash in the bank

Paid for stationery $380 cash

Paid sundry expenses $400 cash

Sold goods on credit to A. Pontian $4000

Paid wages $1000 cash.