accounting , Accounting Basics

Jim owns and manages a small business, which provides an office design service, as well as buying and selling office furniture. Jim is a sole trader who manages all aspects of the business. Jim balances the business accounts at the end of each month.

On 1 June, the balances on his accounts were as follows.

Account name £ Debit/credit

Capital 12,000 Credit

Equipment 7,851 Debit

Van 3,000 Debit

Bank 4,600 Debit

Receivables control 16,599 Debit

Payables control 20,050 Credit

On 1 June, the debit balances on the receivables ledger were as follows.

Receivables ledger accounts £

Tim Jones 5,800

Evans Ltd 9,000

DBC Ltd 5,250

During June, the following transactions took place.

Date Amount, as entered Transaction

In cash book

2 450 Jim buys a camera to use in the business

3 2,400 Receives payment from Sunil Ltd

4 80 Receives a credit note from Evans Ltd for damaged chair

6 3,600 Receives payment from K. Peters

8 5,800 Pays in full the amount outstanding on the account of Tim Jones 10 5,000 Receives cash from Richards plc in part settlement of amount outstanding 15 10,500 Invoices Ted Turner for design services now completed to Ted''s satisfaction 16 425 Pays cash on delivery to Smiths for two desk and chair sets, taking up 15% discount for prompt payment 20 825 Buys a sofa and chair set from Tim Jones, agreeing 30 days credit terms 21 97 Pays telephone bill immediately on receipt, taking up 3% discount for prompt payment 23 8,800 Pays in full the amount outstanding on the account of Evans Ltd 27 5,200 Pays DBC Ltd 28 480 Issues a credit note to Ted Turner to correct an error on the invoice issued on 15 June to Ted Turner

(a) Set out Jim''s nominal ledger accounts and the receivables and payables ledger accounts at 1 June.

(b) Post the June transactions and balance the nominal ledger accounts and the receivables and payables ledger accounts. Assume that the cash book and the day books are posted daily.

(c) Present the trial balance at 1 July.
Posted Date: 3/13/2013 7:43:11 PM | Location : United Kingdom







Related Discussions:- accounting , Assignment Help, Ask Question on accounting , Get Answer, Expert's Help, accounting Discussions

Write discussion on accounting
Your posts are moderated
Related Questions
Q. Example of T-accounts? Suppose that the last day of December 2010 falls on a Monday this expense account doesn't show salaries earned by employees for the last day of the mo

Explain the term- CASH SHORT AND OVER This account is used to record both a shortage and overage of cash in cash drawer. When change is made during a business day, mistakes can

Explain the term- Salaries Expense and payment The Accounting Entry for Employee Earnings and Deductions Employer is the "agent" who is responsible for withholding the a

define accounting. Briefly explain its concepts

trial balance as at may 31 19*6 dr cr sales 400000 purchases 350000 sales return 5000 purchases return

Read it once and answer, if The following items appear on a balance sheet.   $   Inventory balance at bank cash in hand trade

Q. Steps used in retail inventory method? The retail inventory method approximation the cost of the ending inventory by applying a cost/retail price ratio to ending inventory s

journal entry fire insurance claim received for previous year is 50% of its original claim

During the current year, Mast Corporation expects to produce 10,300 units and has budgeted the following: net income $350,376; variable costs $1,080,800; and fixed costs $105,000

Q. What do you mean by Stock? Stock -- a certificate (or electronic or other record) which indicates ownership of a portion of acorporation; a share of stock. Preferred stock p