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  3. 1. ace arch started a business on 1 may and, durin

1. ACE ARCH started a business on 1 May and, during the first month, entered...

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Question

Accounting

1. ACE ARCH started a business on 1 May and, during the first month, entered into the following transactions:

May 1 ACE ARCH starts business as a sole proprietor with $20,000 in

cash

May 2 Pays $15,000 cash into a business bank account

May 4 Purchases goods on credit from JM for $2,000

May 6 Purchases goods from ERD on credit for $3,000

May 7 Pays wages in cash $60

May 10 Pays rent by cheque $80

May 12 Sells goods for cash $210

May 16 Buys furniture for $1,500 paying by cheque

May 19 Sells goods on credit to SP for $580

May 22 Buys goods for cash $3,900

May 24 Buys fittings for cash $600

Pays carriage outwards costs by cheque $25

May 25 Pays wages by cash $110

Sells goods for cash $430

May 27 Receives part payment from SP of $330 by cheque

Pays carriage inwards costs by cheque $20

May 28 Pays advertising by cheque $25

Sells goods for cash $890

May 29 Sells goods on credit to KM for $8,090

May 30 Withdraws $100 cash for his personal use

Required:

Prepare ledger account entries to record the transactions and then balance the accounts at the end of the month

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