Royston starts his own business on 1 September, operating as a wholesaler of novelty goode His...

Transcribed Image Text:

Royston starts his own business on 1 September, operating as a wholesaler of novelty goode His transactions during September were as follows: Transfers £750 of his savings into a business bank account. Borrows £3,000 from LloydWest Bank, repayable in three years' time. Pays £320 to hire a van for September, using debit card. Sep 1 7 Buys essential IT equipment for the business, paying £2,200 by debit card. 9. Buys goods for resale, paying by cheque £760. Buys goods for resale £570 on time from J. Collins. 13 11 Sells goods for £930; customer pays by cheque. Returns unsatisfactory goods to J. Collins, original cost of which was £120. 17 15 Buys goods for resale on time from M. Pembridge, £890. 19 Sells goods on time £1,770 to E. Barrett. 21 Pays £450 cheque to J. Collins. 23 Receives £590 cheque from E. Barrett on account. Takes £280 from business bank account to pay for personal living expenses. Pays staff wages for September, £410 by cheque. 25 27 Required: (a) Record all the transactions and balance-off the accounts. (b) Prepare a Trial Balance as at the end of the month. (c) Assuming that the closing inventory has been counted and valued at cost totalling £570, prepare an Income Statement for the month. Royston starts his own business on 1 September, operating as a wholesaler of novelty goode His transactions during September were as follows: Transfers £750 of his savings into a business bank account. Borrows £3,000 from LloydWest Bank, repayable in three years' time. Pays £320 to hire a van for September, using debit card. Sep 1 7 Buys essential IT equipment for the business, paying £2,200 by debit card. 9. Buys goods for resale, paying by cheque £760. Buys goods for resale £570 on time from J. Collins. 13 11 Sells goods for £930; customer pays by cheque. Returns unsatisfactory goods to J. Collins, original cost of which was £120. 17 15 Buys goods for resale on time from M. Pembridge, £890. 19 Sells goods on time £1,770 to E. Barrett. 21 Pays £450 cheque to J. Collins. 23 Receives £590 cheque from E. Barrett on account. Takes £280 from business bank account to pay for personal living expenses. Pays staff wages for September, £410 by cheque. 25 27 Required: (a) Record all the transactions and balance-off the accounts. (b) Prepare a Trial Balance as at the end of the month. (c) Assuming that the closing inventory has been counted and valued at cost totalling £570, prepare an Income Statement for the month. Royston starts his own business on 1 September, operating as a wholesaler of novelty goode His transactions during September were as follows: Transfers £750 of his savings into a business bank account. Borrows £3,000 from LloydWest Bank, repayable in three years' time. Pays £320 to hire a van for September, using debit card. Sep 1 7 Buys essential IT equipment for the business, paying £2,200 by debit card. 9. Buys goods for resale, paying by cheque £760. Buys goods for resale £570 on time from J. Collins. 13 11 Sells goods for £930; customer pays by cheque. Returns unsatisfactory goods to J. Collins, original cost of which was £120. 17 15 Buys goods for resale on time from M. Pembridge, £890. 19 Sells goods on time £1,770 to E. Barrett. 21 Pays £450 cheque to J. Collins. 23 Receives £590 cheque from E. Barrett on account. Takes £280 from business bank account to pay for personal living expenses. Pays staff wages for September, £410 by cheque. 25 27 Required: (a) Record all the transactions and balance-off the accounts. (b) Prepare a Trial Balance as at the end of the month. (c) Assuming that the closing inventory has been counted and valued at cost totalling £570, prepare an Income Statement for the month. Royston starts his own business on 1 September, operating as a wholesaler of novelty goode His transactions during September were as follows: Transfers £750 of his savings into a business bank account. Borrows £3,000 from LloydWest Bank, repayable in three years' time. Pays £320 to hire a van for September, using debit card. Sep 1 7 Buys essential IT equipment for the business, paying £2,200 by debit card. 9. Buys goods for resale, paying by cheque £760. Buys goods for resale £570 on time from J. Collins. 13 11 Sells goods for £930; customer pays by cheque. Returns unsatisfactory goods to J. Collins, original cost of which was £120. 17 15 Buys goods for resale on time from M. Pembridge, £890. 19 Sells goods on time £1,770 to E. Barrett. 21 Pays £450 cheque to J. Collins. 23 Receives £590 cheque from E. Barrett on account. Takes £280 from business bank account to pay for personal living expenses. Pays staff wages for September, £410 by cheque. 25 27 Required: (a) Record all the transactions and balance-off the accounts. (b) Prepare a Trial Balance as at the end of the month. (c) Assuming that the closing inventory has been counted and valued at cost totalling £570, prepare an Income Statement for the month.

Answer rating: 100% (QA)

a Date General Journal Debit Credit 1Sep Bank Dr 750 To Capital 750 Being cash invested in the business 3Sep Bank Dr 3000 To Bank Loan 3000 Being Bank ... View the full answer