7.5 Henry York is a sole trader who keeps records of his cash and bank transactions in a three- column cash book. His transactions for the month of March were as follows: March 1 Cash in hand £100, Cash at bank £5,672 4 York received a cheque for £1,246 from W Abbot which was paid directly into the bank. This represented sales. 6 Paid wages in cash £39 8 Sold goods for cash £152 10 Received cheque from G Smart for £315, in full settlement of a debt of £344; this was paid directly into the bank. Paid sundry expenses in cash £73 11 14 Purchased goods by cheque for £800 18 Paid J Sanders a cheque of £185 in full settlement of a debt of £201 23 Withdrew £100 from the bank for office purposes 24 Paid wages in cash £39 26 Sold goods for cash £94 28 Paid salaries by cheque £230 31 Retained cash amounting to £150 and paid the remainder into the bank Required: (a) Enter the above transactions within T-accounts and bring down the balances. (b) Assuming no opening debtors, creditors or stock, prepare a trading and profit and loss account for the month of March.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

Subject : Accounting

 

 

7.5 Henry York is a sole trader who keeps records of his cash and bank transactions in a three-
column cash book. His transactions for the month of March were as follows:
March
1 Cash in hand £100, Cash at bank £5,672
4
York received a cheque for £1,246 from W Abbot which was paid directly into the bank.
This represented sales.
Paid wages in cash £39
Sold goods for cash £152
6
8
10
Received cheque from G Smart for £315, in full settlement of a debt of £344; this was
paid directly into the bank.
Paid sundry expenses in cash £73
14
Purchased goods by cheque for £800
18 Paid J Sanders a cheque of £185 in full settlement of a debt of £201
23 Withdrew £100 from the bank for office purposes
24
Paid wages in cash £39
26 Sold goods for cash £94
28
31
Required:
(a) Enter the above transactions within T-accounts and bring down the balances.
(b)
Assuming no opening debtors, creditors or stock, prepare a trading and profit and loss
account for the month of March.
Paid salaries by cheque £230
Retained cash amounting to £150 and paid the remainder into the bank
Transcribed Image Text:7.5 Henry York is a sole trader who keeps records of his cash and bank transactions in a three- column cash book. His transactions for the month of March were as follows: March 1 Cash in hand £100, Cash at bank £5,672 4 York received a cheque for £1,246 from W Abbot which was paid directly into the bank. This represented sales. Paid wages in cash £39 Sold goods for cash £152 6 8 10 Received cheque from G Smart for £315, in full settlement of a debt of £344; this was paid directly into the bank. Paid sundry expenses in cash £73 14 Purchased goods by cheque for £800 18 Paid J Sanders a cheque of £185 in full settlement of a debt of £201 23 Withdrew £100 from the bank for office purposes 24 Paid wages in cash £39 26 Sold goods for cash £94 28 31 Required: (a) Enter the above transactions within T-accounts and bring down the balances. (b) Assuming no opening debtors, creditors or stock, prepare a trading and profit and loss account for the month of March. Paid salaries by cheque £230 Retained cash amounting to £150 and paid the remainder into the bank
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education