Ledger Accounts, Trial Balance and Profit/Loss Accounts
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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.
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Solution Summary
Ledger accounts, trial balances and profit/loss accounts are examined.
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