Jared Investments CC, a sole trader, recorded the following transactions during the financial year ending December...
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Jared Investments CC, a sole trader, recorded the following transactions during the financial year ending December 2021. 1. Received a cheque from Ben King N$ 1 755 and deduct 2% cash discount. 2. Ruth Long who is owed N$ 950 was paid by cheque, deducting 4% cash discount. 3. Withdrew N$1 000 cash from the bank for business use. 4. Angela Bell bought merchandise for NS$ 2 500, after being allowed a 2% trade discount. 5. Repaid Karthy N$ 5 500 in cash for amount lent to the business. 6. Purchased goods on credit from AD Dealers, N$8 420. 7. The business received N$5 000 cash from a tenant for rent. 8. Ava owed the business N$4 520. She was declared insolvent and the business received 30 cents in the dollars, the balance was written off. 9. Ava paid the outstanding balance in cash in September 2021 10. Charge Joy Faure, a debtor, with 5% interest per annum on her overdue account of N$4 500 for 4 months. The payment was received on 30 November 2021. You are required to: a. Analyse the transaction above and record them on the Accounting Equation. Indicate an increase with "+" and a decrease with - e.g. + 400 or -400. The account affected and the amount concerned should be shown in each case. (24 marks) Present your answer in the format below: Received N$4 000 from Anna for settlement of her account Assets Owner's equity Liabilities Cash (+4 000) Anna (-4 000) b. Record the transactions in the General Journal of Jared Investments CC. (24 marks) Jared Investments CC, a sole trader, recorded the following transactions during the financial year ending December 2021. 1. Received a cheque from Ben King N$ 1 755 and deduct 2% cash discount. 2. Ruth Long who is owed N$ 950 was paid by cheque, deducting 4% cash discount. 3. Withdrew N$1 000 cash from the bank for business use. 4. Angela Bell bought merchandise for NS$ 2 500, after being allowed a 2% trade discount. 5. Repaid Karthy N$ 5 500 in cash for amount lent to the business. 6. Purchased goods on credit from AD Dealers, N$8 420. 7. The business received N$5 000 cash from a tenant for rent. 8. Ava owed the business N$4 520. She was declared insolvent and the business received 30 cents in the dollars, the balance was written off. 9. Ava paid the outstanding balance in cash in September 2021 10. Charge Joy Faure, a debtor, with 5% interest per annum on her overdue account of N$4 500 for 4 months. The payment was received on 30 November 2021. You are required to: a. Analyse the transaction above and record them on the Accounting Equation. Indicate an increase with "+" and a decrease with - e.g. + 400 or -400. The account affected and the amount concerned should be shown in each case. (24 marks) Present your answer in the format below: Received N$4 000 from Anna for settlement of her account Assets Owner's equity Liabilities Cash (+4 000) Anna (-4 000) b. Record the transactions in the General Journal of Jared Investments CC. (24 marks)
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Answer to part A Assets Bank 1755 Discount Allowed 35 Bank 912 Discount received 38 ... View the full answer
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
Posted Date:
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