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