You have just received a legacy from your late uncle with which you have purchased a tennis courtand pavilion and have started a private tennis club. Listed below are the transactions in your first yearof trading.1.2.3.4.5.6.7.8.9.10.11.12.You purchased with your own money the court and pavilion for €3,000.As the pavilion had been derelict for two years, you paid €500 with your own money on repairswhich can be deemed as structural changes to the asset.The tennis club purchased €1,000 of bar fittings and equipment on credit100 members joined the club, each paying €20 each, which entitled them to use the tennis courtand pavilion facilities for a one-year period which has then expired at the end of the financial year.(a)The tennis club paid €500 cash for wines and spirits to be sold at the club house. The tennis clubdid not own any wines and spirits stock prior to this purchase.The sales of wines and spirits during the year amounted to €1,850. The closing inventory of thewines and spirits was valued at €100.Groundsman's wages amounted to €1,250 (cash).Part-time barman's wages totalled €250 (cash).You made a drawing of €300 cash from the tennis club to pay rates on your own house.Food for the restaurant costs €500 of which €300 has been paid and €200 is still owing. No foodstock was held at the beginning of the period and none remained at the end of the period.Catering managers' wages amounted to €450 (cash).Restaurant takings amounted to €1,600.RequiredRecord the above transactions in a double entry system, opening as many suitableaccounts as you require.

Double Entry System When referring to a process where the finances are kept in a book, we use the…

10. Food for the restaurant costs €500 of which €300 has been paid and €200 is still owing. No food stock was held at the beginning of the period and none remained at the end of the period. 11. Catering managers' wages amounted to €450 (cash). 12. Restaurant takings amounted to €1,600. Required (a) Record the above transactions in a double entry system, opening as many suitable accounts as you require.

10. Food for the restaurant costs €500 of which €300 has been paid and €200 is still owing. No food stock was held at the beginning of the period and none remained at the end of the period. 11. Catering managers' wages amounted to €450 (cash). 12. Restaurant takings amounted to €1,600. Required (a) Record the above transactions in a double entry system, opening as many suitable accounts as you require.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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