Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Ahmad has started business as a sole trader on 1 October, 2020. The following transactions and events of trading for his first month are

Question

Ahmad has started business as a sole trader on 1 October, 2020. The following transactions and events of trading for his first month are as follows:

Date Transaction

1 Started the business by introducing $360,000 into the business bank account.

3 Rent is paid by cheque $8,000 for the month.

9 Ahmad paid $40,000 in cash for a van.

11 Ahmad purchased goods costing $18,000 on credit from Sarah (invoice no. SR0123).

14 Ahmad sold goods for $7,000 in cash.

16 Ahmad sold goods for $8,000 on credit to Ali (invoice no. AL.0001)

25 Ahmad paid $17,100, taking advantage of a 5% settlement discount with respect to invoice no. SR0123.

28 Ali paid $7,760, taking advantage of a 3% settlement discount with respect to invoice no. AL.0001.

Required:

1- Enter the above transactions into their appropriate cash books.

2- Post the transactions directly into their appropriate nominal ledger accounts.

3- Prepare the trial balance as at October 31, 2020.

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions

Question

What role do hormone levels play in mood?

Answered: 1 week ago

Question

=+How can you personalize the language?

Answered: 1 week ago

Question

=+Can your message work in another locale?

Answered: 1 week ago

Question

=+Can you create an idea that spins out?

Answered: 1 week ago