You are a trainee accountant working for a small firm of accountants You have been asked to work on a new client, John Oteng John recently opened a small shop through rented premises John has supplied you with the following transactions which have taken place during January 2017, his first month of trading 1 st January John opened a business bank account with GH10,000 of his own money 2 nd January GH20,000 bank loan is paid directly into his bank account 3 rd January John bought office equipment GH17,500 and paid by cheque 4 th January GH2,000 rent paid by cheque 5 th January Inventory is purchased on credit from Gyato Limited for GH5,000 6 th January Inventory is purchased by cheque from Don Bortey Limited for GH3,000 13 th January Cash sales deposited at the bank was GH500 15 th January GH100 cheque paid for an advert in the local newspaper 19 th January Cash sales deposited at bank was GH1,200 20 th January GH2,000 cheque paid to Gyato Limited 27 th January Cash sales deposited at the bank was GH2,500 Required Complete the relevant nominal ledger accounts for the above transactions and extract a trial balance as at 31 st January, 2017 Write out the double entry required for the goods and the cash taken by John during January, 2017 List and explain four (4) books of prime entry

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Posted on Sep 06, 2024

You are a trainee accountant working for a small firm of accountants. You have been asked to work on a new client, John Oteng. John

You are a trainee accountant working for a small firm of accountants. You have been asked to work on a new client, John Oteng. John recently opened a small shop through rented premises. John has supplied you with the following transactions which have taken place during January 2017, his first month of trading.

1^st January	John opened a business bank account with GH10,000 of his own money.
2^nd January	GH20,000 bank loan is paid directly into his bank account.
3^rd January	John bought office equipment GH17,500 and paid by cheque.
4^th January	GH2,000 rent paid by cheque.
5^th January	Inventory is purchased on credit from Gyato Limited for GH5,000.
6^th January	Inventory is purchased by cheque from Don-Bortey Limited for GH3,000.
13^th January	Cash sales deposited at the bank was GH500.
15^th January	GH100 cheque paid for an advert in the local newspaper.
19^th January	Cash sales deposited at bank was GH1,200.
20^th January	GH2,000 cheque paid to Gyato Limited.
27^th January	Cash sales deposited at the bank was GH2,500

Required:

Complete the relevant nominal ledger accounts for the above transactions and extract a trial balance as at 31^st January, 2017.
Write out the double entry required for the goods and the cash taken by John during January, 2017.
List and explain four (4) books of prime entry.