accounting , Accounting Basics

Assignment Help:
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.

Related Discussions:- accounting

Prepare a system flowchart - systems analysis, GILCO rents DVDs and DVD pla...

GILCO rents DVDs and DVD players (players) on a short term basis to airline passengers through GILCO locations at every large commercial airport throughout the world.  A passenger

Journal, Why to and by using in journal, trading a/c, p&l a/c and ledger?

Why to and by using in journal, trading a/c, p&l a/c and ledger?

Show double-entry procedure or duality, Q. Show double-entry procedure or d...

Q. Show double-entry procedure or duality? In every business transaction we record the total dollar amount of debits must equal the total dollar amount of credits. While we deb

The total revenue of the month of june amounted, The total revenue of the m...

The total revenue of the month of June amounted to $6,500; total expenses amounted to $3,500; and withdrawals amounted to $600. The net income for the month amounted to $6,000. $

The capital accounts of hawk and martin have balances of, The capital accou...

The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Hawk inve

Management, briefly explain management process

briefly explain management process

The beginning capital of the business totals $4, The beginning capital of t...

The beginning capital of the business totals $4,000. If the net income for the period totals $14,000 and the withdrawals by the owner total $3,000, what will be the new capital b

Ledger, ledger is said to be the principal book entry and the transactions ...

ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account. elaborate on the statement and explain why journal is neces

Nance''s restaurant, Nance's Restaurant, a local independent restaurant, is...

Nance's Restaurant, a local independent restaurant, is evaluating new point-of-sale (POS) systems and must determine if a new installation is feasible. A new POS installation wou

Starting , Define Accounting. Briefly explain the accounting concept which...

Define Accounting. Briefly explain the accounting concept which guide the accounting at the recording stage?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd