Chapter 3 - Double entry for credit transactions


Q1. The following transactions occurred in the business of Mr. Sparrow during the month of January 2016.

Jan

1

Started business with cash $ 12 000.


3

Purchased goods on credit from Sam $ 3 750.


5

Returned goods to Sam $ 550.


7

Paid Sam by cash $ 1 250


9

Purchased goods by cash $ 3 250


11

Purchased equipment on credit from ABC Ltd for $ 1400.


13

Sold goods on credit to Jack $ 4 450.


15

Jack returned goods to us $ 600.


17

Received $1 300 cash from Jack.


20

Paid wages by cash $ 700


22

Paid insurance by cash $ 300


24

Sold goods on credit to Shyam $ 1 300


26

Received cash from Shyam $ 500


28

Withdrew cash for own use $ 400


29

Sold goods for cash $1 600.


30

Received commission by cash $ 350


31

The balance in Shyam account is to be written off as bad debts.


Record all the transactions in the ledger of Mr Sparrow. Balance off all the accounts at 31 January 2016 and draft a trial balance as at that date


Q2. The following transactions occurred in the business of Mr. Grey during the month of March 2017.

Mar

1

Started business with cash $ 13 500.


3

Purchased goods on credit from Samir $ 2 550.


5

Returned goods to Samir $ 300.


7

Paid Samir by cash $ 1 500


9

Purchased goods by cash $ 2 250


11

Purchased machinery on credit from FB Ghoorah Ltd for $ 1700.


13

Sold goods on credit to Fernandez $ 4 500.


15

Fernandez returned goods to us $ 700.


17

Received $1 400 cash from Fernandez.


20

Paid electricity by cash $ 600


22

Paid advertising by cash $ 500


24

Sold goods on credit to Naina $ 1 500


26

Received cash from Naina $ 300


28

Withdrew cash for own use $ 600


29

Sold goods for cash $1 200.


30

Received commission by cash $ 250


31

The balance in Naina account is to be written off as bad debts.


Record all the transactions in the ledger of Mr. Grey. Balance off all the accounts at 31 March 2017 and draft a trial balance as at that date.