According to a company's accounting records, the opening bank balance on 1 August was £17,000. The company’s activities during the first week of August were as follows: Sales made on credit, with a total value of £26,400. Purchases made on credit, with a total value of £18,500. Cheques received from customers with a total value of £19,800. Cheques paid to suppliers with a total value of £13,200. Wages paid totalling £4,000 In addition, a solicitor’s letter informed the company that following investigation, a client invoice for £500 should be written off as irrecoverable. Devise the pair of double-entry postings required to record each transaction. Proceed to post all relevant entries to the bank T account and close this off to identify the bank balance at the end of the week.
According to a company's accounting records, the opening bank balance on 1 August was £17,000.
The company’s activities during the first week of August were as follows:
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Sales made on credit, with a total value of £26,400.
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Purchases made on credit, with a total value of £18,500.
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Cheques received from customers with a total value of £19,800.
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Cheques paid to suppliers with a total value of £13,200.
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Wages paid totalling £4,000
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In addition, a solicitor’s letter informed the company that following investigation, a
client invoice for £500 should be written off as irrecoverable.
Devise the pair of double-
entry postings required to record each transaction.
Proceed to post all relevant entries to the bank T account and close this off to identify the bank balance at the end of the week.
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