In August, Lukus Bird started as a wildlife consultant. He called his business Bird Prolife Consultancy.

Transactions for the month:

2 Started business with R60 000 in the business’s bank account.

3 Cashed a cheque for cash float, R150.

4 Purchased delivery van from ZIP Motors and paid by cheque, R26 000.

9 Paid rent by cheque to B. Slade, R450.

10 Cash receipts for consultancy with the local zoo, R465.

12 Purchased equipment for measuring air pollution, R12 500.

14 Paid wages by cheque, R90.

16 Owner cashed cheque for personal use, R43.

18 Paid The Earth Herald by cheque for advertising, R210.

22 Cash receipts for bird sanctuary consultancy, R655.

24 Paid Eskom by cheque for electricity, R87.

25 Paid CAN by cheque for stationery bought, R145.

27 Paid for petrol by cheque (consumable stores) bought from Tokai Motors, R55. Treated as an expense at acquisition date.

28 Cash receipts from public lecture, R235.

You are required to:

1. Enter the transactions into appropriate ledger accounts using the format in Figure 6.4.

2. Prepare a classified trial balance as at 31 August.

Figure 6.4.

Transcribed Image Text:

Dr. Asset account + BANK 38 000 5 600 24 900 EQUIPMENT 12 000 11 500 VEHICLES 37 100 36 200 MATERIALS INVENTORY 600 Cr. 1 500 12 000 5 200 500 900 ACCOUNTS RECEIVABLE 3 800 = Owner's equity account + Liability account Dr. CAPITAL + RENT EXPENSE 1.500 900 300 Cr. 38 000 CLEANING MATERIALS EXPENSE 600 CLEANING REVENUE DEPRECIATION 500 900 5 600 3 800 9 400 1 400 WAGES & SALARIES 5 200 Dr. ACCOUNTS PAYABLE Cr. 900 37 100 38 000