Trial balance, Financial Accounting

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:- Trial balance

Cash flow statement, does closing balance of cash flow statement equals to ...

does closing balance of cash flow statement equals to cash in balance sheet

Conversion into a company-partnership, CONVERSION INTO A COMPANY The part...

CONVERSION INTO A COMPANY The partners may convert their business and trade in form of a company. This may be due to some of the advantages a company has over a partnership. E.g.

Cash budget, Beginning balance 24,000 cash Sales 250,000 Gross profit 45% o...

Beginning balance 24,000 cash Sales 250,000 Gross profit 45% of sales Accounts receivable increase by 24,000 Accounts payable increased by 51,000 Inventory increased by 98,000 Sell

International accounting, the role of international accounting toward promo...

the role of international accounting toward promotion of generally accepted accounting principle

What is its wacc, You were hired as a consultant to Giambono Company, whose...

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost

Google, how do i find info about google inc

how do i find info about google inc

Persons who may petition-liquidation of companies, Persons Who May Petition...

Persons Who May Petition A petition may be presented by any of the following: A Creditor : A creditor may petition if his debt exceeds Shs 1,000 and is undisputed. The ord

Versions of roi, A huge number of variations of ROT are determined in pract...

A huge number of variations of ROT are determined in practice, based upon how "Investment" and "Return" are explained "Investment" may be explained to comprise any of the subsequen

What is credit analysis, Q. What is Credit Analysis? Potential credit c...

Q. What is Credit Analysis? Potential credit customers must be carefully screened using such methods as bank references, trade references, credit reports from credit reference

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