Question
Stella owns a boutique. The following transactions relates to her business for the month of October 2019 October 1. Started a business with $100000 in
Stella owns a boutique. The following transactions relates to her business for the month of October 2019
October 1. Started a business with $100000 in a bank and $30000 cash
1. Paid rent by cheque $4000
2. Purchased goods on credit from W. Joe $6000 and G. Tom $5000
3. Stella return some goods worth $420 to G. Tom
4. Cash sales of $3000
5. Paid W. Joe #5700 by cheque less # 300 cash discount
6. Purchased furniture from Bora furniture's on credit $ 7000
7. Sold goods on credit to S. jane $2000; P. Rosa $3500
8. Obtained a bank loan $ 50000
9. S. Jane returned goods worth 200
10. S. Jane paid her account in cash less 2% cash discount
11. P. Rosa paid $. 3000 by cheque
12. Paid G. tom $35000 cash
Require;
1. Post the above transaction in the relevant ledger accounts and balance them off as the date of transactions
2. Trial balance as at 26th October 2015
2.Describe the process of accounting for business transactions
3.Identify six qualitative characteristics of accounting information and describe how each enhances usefulness of financial information
4. Explain the following accounting assumption
i. Accrual
ii. Going concern
5.Distinguish between Cash basis of accounting and accrual basis of accounting
6.What is consistency term as used in accounting
7. What is materiality as used in accounting
8. Explain five benefits of customized accounting software
9.Highlight six application of accounting software packages
10. Explain the challenges that companies using the accountingsoftware face
Step by Step Solution
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Step: 1
1 Posting the transactions in the relevant ledger accounts and balancing them off as of the date of the transactions Note The transactions are presented in the order they occurred but the accounts are ...Get Instant Access with AI-Powered Solutions
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Step: 2
Step: 3
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