BDA Co. is unclear about Journal entries. Required: You are required to show the Journal entries (only) (with narrative) necessary to record the following items which occur in June 2020: June 1: Bought a Car on credit from Pressed Garages for £8,500. June 3: A debt of £100 owing from B.Ford was written off as a bad debt June 8: Office Fixtures originally bought for £500 was returned to the supplier Kalleh Ltd, as it was unsuitable. Full allowance will be given for this. June 12: We are owed £160 by Q Hanson. She is declared bankrupt and we received £100 in full settlement of the debt. June 14: The owner takes goods costing £180 out of the business inventory without paying for them. June 28: Some time ago, the owner paid an insurance bill thinking that it was in respect of the business. We now discover that £80 of the amount paid was in fact insurance of our private house. June 28: Bought machinery for £1250 on credit from Electronics R Us.
BDA Co. is unclear about
Required:
You are required to show the Journal entries (only) (with narrative) necessary to record the following
items which occur in June 2020:
June 1: Bought a Car on credit from Pressed Garages for £8,500.
June 3: A debt of £100 owing from B.Ford was written off as a
June 8: Office Fixtures originally bought for £500 was returned to the supplier Kalleh Ltd, as it
was unsuitable. Full allowance will be given for this.
June 12: We are owed £160 by Q Hanson. She is declared bankrupt and we received £100 in full
settlement of the debt.
June 14: The owner takes goods costing £180 out of the business inventory without paying for
them.
June 28: Some time ago, the owner paid an insurance bill thinking that it was in respect of the
business. We now discover that £80 of the amount paid was in fact insurance of our
private house.
June 28: Bought machinery for £1250 on credit from Electronics R Us.
Part 3
J.Moon has the following transactions at for the month of June 2020.
Recording Business Transactions BA30592E
2 | P a g e
2019
June 1 Started business with £28,500 in the bank
2 Bought Van paying by cheque £2,100
5 Bought office fixtures £850 on credit from Office Hand Ltd
8 Bought (second) van on credit from Fast Car Ltd £3,600
12 Took £110 out of the bank and put it into the cash till
15 Bought office fixtures paying by cash £60
19 Paid Fast Car Ltd a cheque for £3,600
21 A loan of £2,500 cash is received from F. Maurice
25 Paid £160 of the cash in hand into the bank account
30 Bought more office fixtures paying by cheque £460
Required:
a. Write up the transactions in the general ledger of S. Keyes
b. Balance up the accounts and extract a
Part 4
S. Green drew up the following Trial Balance as at 30 September 2020:
DR CR
£ £
Capital 45,000
Drawings 14,500
Cash at bank 29,000
Cash in hand 3500
Accounts payable (Creditors) 12,000
Inventory (Stock): 30 September 2018 36,000
Van 21,000
Fixtures and Fittings 18,000
Sales 700,000
Purchases 450,000
Return inwards (Sales Returns) 2,000
Carriage inwards 810
Returns outwards (Purchase Returns) 600
Carriage outwards 2,400
Motor expenses 1500
Rent 54,000
Telephone charges 540
Wages and salaries 71,000
Insurance 750
Office expenses 400
Sundry expenses 200
757,600 757,600
Inventory as at 30 September 2019 was £40,000.
Required
a. Draft an Income Statement for S. Keyes for the year ending 30th September 2020 (12 marks)
b. Construct a
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