Prepare General journal

• June 1 2008 commenced business with a cash of ₵20,000

• June 2 2008 paid rent expense by cheque ₵750

• June 3 2008 Purchase stock of books ₵1,500 and paid by cheque

• June 5 2008 Bought office furniture ₵2,400 paid cheque

• June 10 2008 bought computer ₵1,250 paid by cash

• June 20 2008 sold books for cash ₵850.00

• June 25 2008 paid cash into bank ₵1,750

Show the effect of these transaction on the accounting equation and prepare a balance sheet.
GH₵
1. July started business with cash 30,000
2. Sales on cash 50,000
3. Stock of materials paid by cash 10,000
4. Paid cash into bank 20,000
5. Withdrew cash for office use 10,000
6. Loan received by cash 20,000
7. Sales of goods received cheque 30,000
8. Cash sales 80,000
9. Charles (debtor)paid us by cash 50,000
10. Sales, received cheque 40,000


Prepare 2 column cash book

• June 1 2008 commenced business with a cash of ₵20,000
• June 2 2008 paid rent expense by cheque ₵750
• June 3 2008 Purchase stock of books ₵1,500 and paid by cheque
• June 5 2008 Bought office furniture ₵2,400 paid cheque
• June 10 2008 Bought computer ₵1,250 paid by cash.
• June 20 2008 sold books for cash ₵850.00
• June 25 2008 paid cash into bank ₵ 1,750

Answer rating: 100% (QA)

1 General Journal Date Description Debit Credit June 1 Cash 20000 Capital 20000 June 2 Rent Expense 750 Cash 750 June 3 Purchase of Stock Books 1500 Cash 1500 June 5 Office Furniture 2400 Cash 2400 Ju... View the full answer