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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.

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
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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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
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