(1) These are some of the accounts for your business Cash Purchases Capital Draw
ID: 2443562 • Letter: #
Question
(1) These are some of the accounts for your business
Cash
Purchases
Capital
Drawings
Purchases Return
Debtors – Ane, Ene, Cry, Sea
Bad Debts
Sales
Stock
Wages
Rent
Sales Returns
Discount received
Advertising
Discount allowed
Furniture & Fittings
Typewriter
Stationery
Interest paid
Filing cabinet
Commission rec’d
Accounts payable – Matatufu, Eseese, Taufao
Gain on sale / Ending Stock $1,100
You are required to prepare a chart of accounts in an orderly way.
(2) On 30th June 2001, the business of Nonu Fili had the following assets and liabilities
ASSETS: LIABILITIES:
Bank 40.00 Loan 312.00
Stock 1714.00
Fixtures & Fittings 500.00
DEBTORS – Ane 96.00
Ene 56.00
You are to open up the books of First entry of Nonu Fili on 1st June 2001. Use the following columns for Cash Journals.
RECEIPTS: Sales, Debtors, Other Receipts
PAYMENTS: Purchases, Creditors, Advertising, Rent, Wages, Stationery, Drawings, Interest, Other
payments.
Transactions
2001
June 1 Sold goods on Credit to Ane, invoice # 200 for $72.00
2 Bought goods from Matatufu invoice # 302 for $188.00
3 Sold goods to Ene invoice # 201, $48.00
Paid cash to Matatufu of $141.00, cheque #501, rec’d a discount of $3.00
Paid cash to Taufao, cheque # 502, allowed a discount of $3 for $165.00
6 Sold goods to Cry, invoice # 202, $56.00
7 Paid advertising cheque # 503 for $14.00
8 Bought goods from Eseese invoice #405, $126.00
9 Paid Rent, cheque #504 for $80.00
10 Bought goods from Taufao invoice #605 for $156.00
12 Return goods from Ane, credit note #4 for $8.00
Bought goods for cash, cheque #505, $78.00
13 Return goods to Matatufu credit not #10, $10.00
Received cash from Ane $96.00 allowed a discount of $2.00, receipt #71
15 Nonu Fili draw goods for his personal use, $44.00
Cash Sales $436.00, receipt #72
Paid wages $32.00, cheque #506
16 Wrote off Ene’s account credit note #30 for $4.00
17 Return goods to Eseese credit note #30 for $4.00
18 Paid stationery, cheque #507 for $18.00
19 Goods returned from Ene, credit note #5 for $14.00
20 Received cash from Ene receipt #73 for $14.00
24 Further capital introduced by owner, receipt #74, $700.00
Received commission $20.00
28 Nonu Fili draw cash for his personal use, cheque #508 for $148.00
29 Bought filing cabinet for cash at $36.00 cheque #509
Paid Interest $15.00
(a) Prepare the seven (7) Journals.
(b) Post to the Ledge account as set out in the chart of accounts. (Using three columns)
(c) Prepare a Trial Balance.
ADJUSTMENTS:
2001
June 1 For rent due but not paid $80.00
2 Prepaid wages $2.00
3 For commission due but not yet received $20.00
4 Debts written off as bad as a doubtful debts $8.00
5 Depreciation on fixture & fittings $100.00
(3) Prepare a worksheet.
(4) Prepare classified financial statements from the worksheet.
Explanation / Answer
1. Income Statement Sales ***** Less: sales returns *** Net sales -(A) **** Less: Cost of goods sold Opening stock *** Add: Purchase *** Less: returns *** Net purchase *** Wages *** Cost of goods sold -(B) ***** Gross profit - (A - B) ***** Less: Operating Expences Rent *** Advertising *** Discount allowed *** Stationary *** Interest paid *** Filing cabinate *** Baddebts *** Total Operating Expences **** Operating Income ***** Add: Income Discount received *** Commission received *** *** Net Income ****** Balance Sheet Assets Current Assets: Cash *** Debtors: Ane *** Ene *** Cry *** Sea *** Less: Baddebts *** *** Closing stock *** Total Current Assets: ***** Fixed assets: Furniture & Fittings *** Type writer *** **** Total Assets ****** Liabilities and Equities: Accounts payble: Matatuful *** Eseese *** Taufao *** Total liabilities **** Equities: Capital ***** Less: Drawings *** Total Equity: **** Total Liabilities and Equity: ****** 2. Journel Entries 1-Jun Ane 72 Sales 72 (Being Credit sales) 2-Jun Purchase 188 Matatufu 188 (Being Credit Purchases) 3-Jun Ene 48 Sales 48 (Being Credit sales) Matatufu 141 Cash 138 Discount 3 (Being cash paid) Taufao 165 Cash 162 Discount 3 (Being cash paid) 6-Jun Cry 56 Sales 56 (Being credit sales) 7-Jun Advertising 14 Bank 14 (being paid advertising exp) 8-Jun Purchase 126 Eseese 126 (being credit purchases) 9-Jun Rent 80 Bank 80 (Being rent paid ) 10-Jun Purchase 156 Taufao 156 (Being credit purchase) 12-Jun Sales returns 8 Ane 8 (Being sales returns) Purchase 78 Bank 78 (being cash purchase) 13-Jun Matatufu 10 Purchase returns 10 (being purchase returns) Cash 96 Discount allowed 2 Ane 98 (being cash received) 15-Jun Drawings 44 Purchase 44 (being goods used for personel) Bank 436 sale 436 (being cash sales) Wages 32 Bank 32 (being wages paid) 16-Jun Sales returns 4 Ene 4 (Being credit note) 17-Jun Eseese 4 Purchase returns 4 (being purchase returns) 18-Jun Stationery 18 bank 18 (Being stationery paid) 19-Jun Sales returns 14 Ene 14 (being sales returns) 20-Jun Cash 14 Ene 14 (being cash received) 24-Jun Cash 700 Capital 700 (being additional capital) Cash 20 Commission 20 (being commission received) 28-Jun Drawings 148 Bank 148 (being drawings) 29-Jun Filing cabinate 36 bank 36 (being asset purchased) Interest 15 cash 15 (being interest paid) You are posted multiple questions, could you please give separate posts..... we con't answer for multiple questions.... Thank you..... Income Statement Sales ***** Less: sales returns *** Net sales -(A) **** Less: Cost of goods sold Opening stock *** Add: Purchase *** Less: returns *** Net purchase *** Wages *** Cost of goods sold -(B) ***** Gross profit - (A - B) ***** Less: Operating Expences Rent *** Advertising *** Discount allowed *** Stationary *** Interest paid *** Filing cabinate *** Baddebts *** Total Operating Expences **** Operating Income ***** Add: Income Discount received *** Commission received *** *** Net Income ****** Balance Sheet Assets Current Assets: Cash *** Debtors: Ane *** Ene *** Cry *** Sea *** Less: Baddebts *** *** Closing stock *** Total Current Assets: ***** Fixed assets: Furniture & Fittings *** Type writer *** **** Total Assets ****** Liabilities and Equities: Accounts payble: Matatuful *** Eseese *** Taufao *** Total liabilities **** Equities: Capital ***** Less: Drawings *** Total Equity: **** Total Liabilities and Equity: ******Related Questions
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