You are a trainee accountant working for a small firm of accountants. You have been asked to work on a new client, John Oteng. John recently opened a small shop through rented premises. John has supplied you with the following transactions which have taken place during January 2017, his first month of trading.

1st January	John opened a business bank account with GH¢10,000 of his own money.
2nd January	GH¢20,000 bank loan is paid directly into his bank account.
3rd January	John bought office equipment GH¢17,500 and paid by cheque.
4th January	GH¢2,000 rent paid by cheque.
5th January	Inventory is purchased on credit from Gyato Limited for GH¢5,000.
6th January	Inventory is purchased by cheque from Don-Bortey Limited for GH¢3,000.
13th January	Cash sales deposited at the bank was GH¢500.
15th January	GH¢100 cheque paid for an advert in the local newspaper.
19th January	Cash sales deposited at bank was GH¢1,200.
20th January	GH¢2,000 cheque paid to Gyato Limited.
27th January	Cash sales deposited at the bank was GH¢2,500

Required:

1. Complete the relevant nominal ledger accounts for the above transactions and extract a trial balance as at 31^st January, 2017.                                                 
2. Write out the double entry required for the goods and the cash taken by John during January, 2017.                                                                   
3. List and explain four (4) books of prime entry.   

Answer rating: 100% (QA)

Explanation 1 Ledgers Bank To Johns Capital 10000 By Office Eq... View the full answer