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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F30b2ccc2-b070-4823-af86-b358202777b0%2Fgwh5w4a_processed.jpeg&w=3840&q=75)
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
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education