Explore BrainMass
Share

Explore BrainMass

    Ledger Accounts, Trial Balance and Profit/Loss Accounts

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Question 1

    The following transactions relate to K. Darkwa's business for the month of June 2010:

    1.06.10 Started the business with GH¢40,000 in cash and GH¢24,000 in bank.

    2.06.10 Bought goods on credit from the following suppliers:

    Adjoa GH¢26,000
    Yaa GH¢30,000

    10.06.10 Sold goods on credit to the following customers:

    Efe GH¢60,000
    Senyo GH¢70,000

    12.06.10 Returned goods to the following suppliers:

    Adjoa GH¢4,000
    Yaa GH¢6,000

    15.06.10 Bought additional goods on credit from Adjoa for GH¢16,000 and from Yaa for GH¢20,000.

    16.06.10 Borrowed GH¢80,000 from a bank to be repaid over a period of 5 years.

    17.06.10 Purchased Delivery Van for GH¢40,000 and paid by cheque.

    20.06.10 Sold more goods on credit to Efe for GH¢22,000 and to Senyo for GH¢32,000.

    24.06.10 Paid office expenses of GH¢16,000 in cash.

    25.06.10 Purchased office equipment for GH¢22,000 and paid by cheque.

    26.06.10 K. Darkwa granted cash discount of GH¢600 and GH¢800 to Efe and Senyo respectively.

    27.06.10 Received GH¢26,000 in cash from Efe and GH¢38,000 in cash from Senyo.

    28.06.10 K. Darkwa enjoyed a cash discount of GH¢1,200 from Yaa for prompt payment of debt.

    28.06.10 K. Darkwa paid Adjoa and Yaa GH¢22,000 and GH¢30,000 respectively, in cash.

    29.06.10 Paid salaries of GH¢14,000 by cheque.

    29.06.10 Withdrew GH¢1,500 from the business bank account for the business petty cash.

    30.06.10 Paid transport fare of GH¢150 from petty cash.

    30.06.10 Paid his child's school fees of GH¢550 from the business petty cash

    Required:

    a) Enter the above transactions in K. Darkwa's Ledger accounts.
    b) Compile a trail balance as at June 30 2010.
    c) Prepare trading, profit and loss accounts and a balance sheet for the period.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:44 am ad1c9bdddf
    https://brainmass.com/business/trial-balance/ledger-accounts-trial-balance-profit-loss-accounts-391408

    Attachments

    Solution Summary

    Ledger accounts, trial balances and profit/loss accounts are examined.

    $2.19