These balances and totals appeared in the books of Young Beauty Salon on 1 August: The businesss financial year ended


These balances and totals appeared in the books of Young Beauty Salon on 1 August:

The business’s financial year ended on 31 August.

Transactions for August:

1 Issued a cheque to pay the August rent to Kindo Properties, R500.

Received a cheque for R10 000 from the owner as capital. Receipt 06 issued.

4 Bought new equipment for the office from Manzini Shopfitters and paid by cheque, R4 720.80.

6 Current income according to the cash register roll, R4 010.35.

7 Purchased consumable stores from Tait Ltd for R1 210.24.

10 Drew a cash cheque to put petrol in the personal vehicle of the owner, R66.

12 Fees for services rendered, according to cash register roll, R5 860.44.

14 The owner increased his capital with a cheque for R7 000. Issued receipt 07.

15 Issued a cheque to pay for consumable stores bought from Tait Ltd, R640.89.

18 Cash banked (service fees), R3 215.13.

22 Bought a vehicle form Park Motors and paid by cheque, R18 700.

24 Services rendered, R4 000.

27 Paid the following by cheque:

31 Cash received for services rendered, R6 300.23.

You are required to:

1. Open the general ledger on 1 August with the opening balances given.

2. Post the above transactions to the general ledger.

3. Extract a trial balance.

4. Prepare the statement of profit or loss & other comprehensive income and statement of financial position.

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Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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Problem: 7
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Question Posted: August 30, 2023 03:45:46