Unit 10 - Recording business transactions in the ledger


Notes and activities on recording business transactions


Answer of Activities and Questions


CASH TRANSACTIONS

1. The following transactions took place in the business of Sam during the month of December 2015




Receipts

Payments

Account to Debit

Account to Credit

Dec

1

Started business with cash $ 2 500.






4

Purchased goods by cash $ 1 450.






7

Purchased equipment by cash $ 300.






9

Sold goods for cash $ 1 900.






14

Paid insurance by cash $ 400.






18

Received commission by cash $ 250.






31

Withdrew cash for own use $ 150.






2. The following transactions took place in the business of John Snow during the month of January 2018




Receipts

Payments

Account to Debit

Account to Credit

Jan

1

Started business with cash $ 2 700.






5

Purchased equipment by cash $800.






9

Purchased goods by cash $ 1 250.






10

Paid insurance by cash $ 600.






15

Withdrew cash for own use $ 900.






23

Received commission by cash $ 150.






31

Sold goods for cash $ 1 800.






3. The following transactions took place in the business of Jack Sparrow during the month of December 2018




Receipts

Payments

Account to Debit

Account to Credit

Dec

1

Started business with cash $ 8 000.






6

Purchased goods by cash $ 1 950.






7

Purchased  van by cash $ 1 300.






11

Sold goods for cash $ 2 300.






13

Paid wages by cash $ 200.






19

Received rent by cash $ 650.






30

Withdrew cash for family use $ 350.






BANK TRANSACTIONS

Q1. The following transactions took place in the business of Samiyah during the month of January 2017.




Account to debit

Account to credit

Jan

1

Started business with bank balance $ 13 800




3

Purchased goods by cheque $ 4 200




5

Sold goods and received cheque of $ 5 100




7

Purchased equipment by cheque $1 800




15

Paid wages by cheque $ 1 800




17

Received commission by cheque $ 1 700




31

Withdrew cash from bank for own use $ 500



 

DR

In the ledger of Samiyah            

CR

Date

Details

Amount

Date

Details

Amount

BANK ACCOUNT























































CAPITAL ACCOUNT



















PURCHASES ACCOUNT

























 

 


REVENUE(SALES) ACCOUNT

























EQUIPMENT ACCOUNT



















WAGES ACCOUNT



















COMMISSION RECEIVABLE ACCOUNT



















DRAWINGS ACCOUNT




















Trial Balance as at 31st January 2017

Title of Account

DR

CR

Bank



Capital



Purchases



Revenue(Sales)



Equipment



Wages



Commission Received



Drawings







Q2. The following transactions took place in the business of Fernandez during the month of January 2017.




Account to debit

Account to credit

Jan

1

Started business with bank balance $ 11 800




5

Purchased goods by cheque $ 4 200




7

Sold goods and received cheque of $ 6 800




9

Purchased equipment by cheque $3 800




18

Paid wages by cheque $ 1 700




20

Received commission by cheque $ 1 500




31

Withdrew cash from bank for own use $ 900



 

DR

In the ledger of Samiyah            

CR

Date

Details

Amount

Date

Details

Amount

BANK ACCOUNT























































CAPITAL ACCOUNT



















PURCHASES ACCOUNT

























 

 


REVENUE(SALES) ACCOUNT

























EQUIPMENT ACCOUNT



















WAGES ACCOUNT



















COMMISSION RECEIVABLE ACCOUNT



















DRAWINGS ACCOUNT




















Trial Balance as at 31st January 2017

Title of Account

DR

CR

Bank



Capital



Purchases



Revenue(Sales)



Equipment



Wages



Commission Received



Drawings








CREDIT TRANSACTIONS

Q1. The following transactions took place in the business of Sam during the month of December 2015




Receipts

Payments

Account to Debit

Account to Credit

Dec

1

Started business with cash $ 2 500.






4

Purchased goods by cash $ 1 450.






5

Purchased goods on credit from Raj $ 300






7

Purchased equipment by cash $ 300.






9

Sold goods for cash $ 1 900.






11

Sold goods on credit to Shyam $ 400






14

Paid insurance by cash $ 400.






18

Received commission by cash $ 250.






31

Withdrew cash for own use $ 150.






Q2. The following transactions took place in the business of John Snow during the month of January 2018




Receipts

Payments

Account to Debit

Account to Credit

Jan

1

Started business with cash $ 2 700.






5

Purchased equipment by cash $800.






9

Purchased goods by cash $ 1 250.






12

Purchased goods on credit from Ram $ 650






13

Paid insurance by cash $ 600.






15

Withdrew cash for own use $ 900.






23

Received commission by cash $ 150.






28

Sold goods for cash $ 1 800.






31

Sold goods on credit to Lucky $ 750