On 1 October 2016, the owner of the USS Enterprise, Mr Kirk, decides that he will boldly
Question:
On 1 October 2016, the owner of the USS Enterprise, Mr Kirk, decides that he will boldly go and keep his records on a double entry system. His assets and liabilities at that date were:
Kirk's transactions during October were as follows:
1 Sold faulty phasers, original cost £500, to Klingon Corp, for cash £5,000
2 Bought Photon Torpedoes (weapons), on time from Central Council £2,500
3 Sold goods to Aardvarks, original cost £250, on time, £1,500
4 Bought Cloaking Device (Fixture and Fittings) from Klingon Corp £3,500
5 Paid the balance owed to Spock at 1 October less a 5 per cent cash discount
6 Paid Central Council full amount due by cheque
7 Received full amount due from Aardvarks by cheque
8 Paid Klingon Corp by cheque after deducting 20 per cent trade discount
9 Paid, by bankers order, £10,000 for repairs to Enterprise following disagreement over amount owing to Klingon Corp and faulty phasers.
Required:
Open Enterprise's ledger accounts at 1 October, record all transactions for the month, balance the ledger accounts, and prepare a trial balance as at 31 October.
Step by Step Answer:
Frank Woods Business Accounting Volume 1
ISBN: 9781292084664
13th Edition
Authors: Alan Sangster, Frank Wood