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Omnibus Ltd began business on 19 Jan 2020 with capital of N50,000 at Bank. The following transactions occurred during the month of January 2020: 1-Jan
Omnibus Ltd began business on 19 Jan 2020 with capital of N50,000 at Bank. The following transactions occurred during the month of January 2020: 1-Jan Paid office rent N200,000 Cheque 1-Jan Bought goods paid by cheque N50,000 2-Jan Sold good for cash to Umeh N100,000 2-Jan Sold goods on credit to Adamu N200,000 7-Jan Adamu returned good N50,000 12-Jan Bought goods on credit from Eze N150,000 20-Jan Bought Computer from XYZ Itd on credit N400,000 23-Jan Adamu paid for goods receiving a cash discount of 10% 24-Jan Bought goods on credit from Eze N100,000 receiving a trade discount of 10% 27-Jan Paid Eze his outstanding by Cheque being allowed 5% cash discount 30-Jan Withdrew cash from bank for office use N20,000 31-Jan Paid salaries N30,000 You are required to: a. Write up book the relevant books of original entries for the month (20 marks) b. Briefly explain how the entries shall be posted into the ledger account briefly (10 marks)
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