BOOKS OF ORIGINAL OR PRIME ENTRY: GROUP ASSIGNMENT Question One (1) Frankie Bobo, a top Bank executive, started business on 1st January 2020 with high hopes of success following a company-wide redundancy exercise which left most employees stranded. Frankie Bobo had a flare for business as he used to sell shirts and other imported items to his colleagues before the redundancy exercise. On the day he officially commenced business, he had the following assets and liabilities which he gathered from his personal savings and support received from a couple of family and friends GHS'000 Land and Buildings Furniture and Fittings 8,000 5,000 Motor Vehicle 1,400 Debtors - Koo Fori 800 1,600 3,200 Apalahara Inventory Cash in hand 400 Bank Overdraft 2,400 1,000 Creditors - Angela Debbie 600 The following transactions took place during the month of January 2020. GHS'000 Jan.1 Received a cheque from Apalahara Jan. 2 Sold goods on credit to Maatso Jan. 4 Paid Insurance via a bank transfer 1,400 2,400 80 Jan. 7 Maatso paid her account in full through the bank Jan. 8 Bought goods for cash 2,300 200 Jan. 9 Banked cash 600 Jan. 9 Sold goods for cash Jan. 13 Bought goods on credit from Debbie Jan. 22 Paid salaries via direct debit from the company's bank account Jan. 24 Paid Debbie by cheque the balance due to her at 1 January, less 5% cash 1,000 800 100 discount Jan. 25 Sold goods on credit to Maatso Jan. 26 Paid Angela by cash in full, less 10% discount Jan. 27 Cash sales paid directly to the bank Jan. 29 Bought goods on credit from Debbie Jan. 30 Paid rent and rates by cash 400 800 1,000 40 Required a) Prepare the opening journal to ascertain the opening capital of Frankie Bobo's business. b) Enter the above transactions in the books of prime entries c) Post to the respective ledgers
BOOKS OF ORIGINAL OR PRIME ENTRY: GROUP ASSIGNMENT Question One (1) Frankie Bobo, a top Bank executive, started business on 1st January 2020 with high hopes of success following a company-wide redundancy exercise which left most employees stranded. Frankie Bobo had a flare for business as he used to sell shirts and other imported items to his colleagues before the redundancy exercise. On the day he officially commenced business, he had the following assets and liabilities which he gathered from his personal savings and support received from a couple of family and friends GHS'000 Land and Buildings Furniture and Fittings 8,000 5,000 Motor Vehicle 1,400 Debtors - Koo Fori 800 1,600 3,200 Apalahara Inventory Cash in hand 400 Bank Overdraft 2,400 1,000 Creditors - Angela Debbie 600 The following transactions took place during the month of January 2020. GHS'000 Jan.1 Received a cheque from Apalahara Jan. 2 Sold goods on credit to Maatso Jan. 4 Paid Insurance via a bank transfer 1,400 2,400 80 Jan. 7 Maatso paid her account in full through the bank Jan. 8 Bought goods for cash 2,300 200 Jan. 9 Banked cash 600 Jan. 9 Sold goods for cash Jan. 13 Bought goods on credit from Debbie Jan. 22 Paid salaries via direct debit from the company's bank account Jan. 24 Paid Debbie by cheque the balance due to her at 1 January, less 5% cash 1,000 800 100 discount Jan. 25 Sold goods on credit to Maatso Jan. 26 Paid Angela by cash in full, less 10% discount Jan. 27 Cash sales paid directly to the bank Jan. 29 Bought goods on credit from Debbie Jan. 30 Paid rent and rates by cash 400 800 1,000 40 Required a) Prepare the opening journal to ascertain the opening capital of Frankie Bobo's business. b) Enter the above transactions in the books of prime entries c) Post to the respective ledgers
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:BOOKS OF ORIGINAL OR PRIME ENTRY: GROUP ASSIGNMENT
Question One (1)
Frankie Bobo, a top Bank executive, started business on 1st January 2020 with high hopes of success
following a company-wide redundancy exercise which left most employees stranded. Frankie Bobo had a
flare for business as he used to sell shirts and other imported items to his colleagues before the
redundancy exercise. On the day he officially commenced business, he had the following assets and
liabilities which he gathered from his personal savings and support received from a couple of family and
friends
GHS'000
Land and Buildings
Furniture and Fittings
Motor Vehicle
8,000
5,000
1,400
800
Debtors - Koo Fori
1,600
3,200
Apalahara
Inventory
Cash in hand
400
Bank Overdraft
2,400
1,000
Creditors - Angela
Debbie
600
The following transactions took place during the month of January 2020.
Jan.1 Received a cheque from Apalahara
Jan. 2 Sold goods on credit to Maatso
Jan. 4 Paid Insurance via a bank transfer
GHS'000
1,400
2,400
80
2,300
Jan. 7 Maatso paid her account in full through the bank
Jan. 8 Bought goods for cash
Jan. 9 Banked cash
200
600
1,000
Jan. 9 Sold goods for cash
Jan. 13 Bought goods on credit from Debbie
Jan. 22 Paid salaries via direct debit from the company's bank account
Jan. 24 Paid Debbie by cheque the balance due to her at 1 January, less 5% cash
800
100
discount
Jan. 25 Sold goods on credit to Maatso
Jan. 26 Paid Angela by cash in full, less 10% discount
Jan. 27 Cash sales paid directly to the bank
Jan. 29 Bought goods on credit from Debbie
Jan. 30 Paid rent and rates by cash
400
800
1,000
40
Required
a)
Prepare the opening journal to ascertain the opening capital of Frankie Bobo's business.
b)
Enter the above transactions in the books of prime entries
Post to the respective ledgers
c)
d)
Extract a Trial Balance at the end of the month of January 2020
Question Two (2)
Prepare a three-column cash book onrom the transactionsS below extracted from the books of
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