Enter the following transactions in the ledger of A Baker and prepare a trial balance at 31
Question:
Enter the following transactions in the ledger of A Baker and prepare a trial balance at 31 May, together with a calculation of the profit for the month and a balance sheet at 31 May.
May 1 Started in business with £1,500 in the bank and £500 cash
May 2 Purchased goods to the value of £1,750 from C Dunn, agreeing credit terms of 60 days
May 3 Bought fixtures and fittings for the bakery for £150, paying by cheque
May 6 Bought goods on credit from E Farnham for £115
May 10 Paid rent of £300 paying cash
May 12 Bought stationery – cash book and invoices – for £75 – paying by cash
May 14 Sold goods on credit, value £125, to G Harlem
May 20 Bought an old van for deliveries for £2,000 on credit from I Jumpstart
May 30 Paid wages of £450 net for the month by cheque, Inland Revenue deductions of £75 to be paid in the following month
May 31 Summarised cash sales for the month and found them to be £2,500. Took a cheque for £500 as own wages for the month. Banked £2,000 out of the cash sales over the month
May 31 Closing stock was £500
Expert Answer:
May 20 Transaction It shall affect Van AC and that I Jumpstart AC May 30 Transactio... View the full answer
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
