Question 4 A trader by name Vera Amankwah has recorded the following details on transactions that took place in the month of May 2010. May 1 Started business with GH19,000 cash 2 Received a loan from Quao GH15,700 cash 5 Bought goods on credit from Kwakye GH 1700 10 Bought a motor van GH12,500 cash 15 Sold goods for cash GH11,000 20 Paid Kwakye GH1700 cash 24 Paid wages and salaries GH11,500 cash 28 Bought premises for GH15,000 cash 30 Bought goods for cash GH11,500 You are required to i. Prepare the cash book (cash column only) from the books of Vera Amankwah for the month of May. ii. Analyse the results of the cash book balance and comment on the decision making prospects of the balance. iii. Vera Amankwah does not understand why the accounts clerk used a cash only column, explain in detail the reason for the use of the cash column as against two and three column cash books. QUESTION 3 The following transactions has been extracted from the books of Banson & Sons for April 2013: Apr. 1: Commenced business with 140,000. Apr. 4: Bought goods for cash 14,000 Apr. 7: Sold goods 1700 (for Cash) Apr. 10: Bought goods from Nora Bros. 13.000 at 10% trade discount. Apr. 14: Purchased machinery of 15,000 from Umar Bros. Apr. 16: Paid for transportation of machinery 1500 & installation charges 300 on it. Apr. 20: Paid quarterly interest on borrowed amount of 13,000 at 12% p.a. Apr. 24: Supplied goods to Daniel & Sons 12,500. Apr. 27: Paid to Umar Bros. 11600 in full settlement of account. Apr. 28: Banson & Sons returned goods worth 200 & paid for 11.100 on account. Apr. 29: Received commission 1150. Apr. 30: Paid conveyance to manager 1150 Required: a) Prepare the journal entries for the transactions above b) Balance off all accounts c) Etraxt a trial balance from the balances