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Record the following transactions for the month of January of a small finishing retailer, balance off...

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Accounting

Record the following transactions for the month of January of asmall finishing retailer, balance off all the accounts, and thenextract a trial balance as at 31 January 20X8: 20X8

Jan 1 Started in business with £10,500 cash.

2 Put £9,000 of the cash into a bank account.

3 Bought goods for cash £550.

4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith£160; G Low £510.

5 Bought stationery on credit from Buttons Ltd £89.

6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh£326; A Tom £204.

8 Paid rent by cheque £220.

10 Bought fixtures on credit from Chiefs Ltd £610.

11 Paid salaries in cash £790.

14 Returned goods to: F Hood £30; M Smith £42.

15 Bought van by cheque £6,500.

16 Received loan from B Barclay by cheque £2,000.

18 Goods returned to us by: R Tong £5; M Singh £20.

21 Cash sales £145.

24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat£158.

26 We paid the following by cheque: F Hood £900; M Smith£118.

29 Received cheques from: R Pleat £158; L Fish £370.

30 Received a further loan from B Barclay by cash £500.

30 Received £614 cash from A Tom.

Answer & Explanation Solved by verified expert
4.0 Ratings (520 Votes)

Recording of transactions in T-Accounts:
DEBIT AMOUNT $ CREDIT AMOUNT $
Cash a/c
1-Jan 10500 2-Jan 9000
21-Jan 145 3-Jan 550
30-Jan 500 11-Jan 790
30-Jan 614 CB 1419
Bank a/c
2-Jan 9000 8-Jan 220
16-Jan 2000 15-Jan 6500
29-Jan 528 26-Jan 1018
CB 3790
Capital a/c
1-Jan 10500
Inventory a/c
3-Jan 550 CB 2950
4-Jan 2400
AP a/c
14-Jan 72 4-Jan 2400
26-Jan 1018 5-Jan 89
CB 2009 10-Jan 610
Stationery a/c
5-Jan 89
Sales revenue a/c
CB 1783 6-Jan 940
21-Jan 145
24-Jan 698
AR a/c
6-Jan 940 18-Jan 25
24-Jan 698 29-Jan 528
29-Jan 614
CB 471
Rent a/c
8-Jan 220
Furniture and Fixtures a/c
10-Jan 610
Salary a/c
11-Jan 790
Inventory return a/c
14-Jan 72
Van a/c
15-Jan 6500
Loan a/c
CB 2500 16-Jan 2000
30-Jan 500
Sales return a/c
18-Jan 25
Trial Balance:
Accounts Title Debit Credit
Cash 1419
Bank 3790
Inventory 2950
Stationery 89
AR 471
Fixtures 610
Van 6500
AP 2009
Loan 2500
Capital 10500
Sales revenue 1783
Sales return 25
Rent expense 220
Salary expense 790
Inventory return            72
Total 16864 16864

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