MUNCHIES CATERER Munchie's caterers are a small sole trading business which will be operated from the owner's home and which will employ four people. The starting capital consists of the owner's savings of $20,000 in the bank. OPERTING DESCIONS: B The business will supply lunches daily, Monday to Friday, to a factory owned by Naz Rudeen. Payment will be received at the end of the month. The business plans to take a small catering job. Payments for these jobs will be received on delivery. O Purchase of perishable goods will be made weekly for cash and non-perishable will be purchased on credit and monthly basis B Employees are to be paid monthly. The bank account will be used for all payments for purchases and wages E The cash account will be used for all other payments ACCOUTING PROCEDURES Financial periods for which accounts will be kept: 1-30 September and 1-31 October. Accounting records kept: General Journal, three-column cash book purchases and sales journals and a general Journal. Business Transactions for both periods: ACTI VITY 1- record in the General Journal the entries on September 1 and 3. September 1 started business by depositing cash in the business bank account $20,000 September 2 withdrew cash from bank for office use $1,000 September 3 an electric deep fryer was purchased on credit from Peters Appliances in Princes town for $1,385 AVTIVITY 2a- draw up purchase invoice with the information given on September 3rd. (Students can create the other information to be included on the invoice such as address and invoice number) September 3 the firm received a purchase invoice from Mega Foods traders for the following 1 case of whole Milk @ 72 per case 2 Cases of seedless raisins $98 per case 1 bale rice $80 50 Ibs sugar @112 A 10% discount is to be applied and the terms of trade are 2½% cash discounts paid in 15 days. ACTIVITY 2b-Enter invoice information into appropriate ledgers and journals. ACTIVITY 3 - draw up a sales invoice for Septembers 30th. Record the relevant transactions in the day books including cash book. (Remember transaction of 1stSept and 2 Nd Sept. September 7th Received cheque $5000 for private catering job September 9th Cash purchases $450
MUNCHIES CATERER Munchie's caterers are a small sole trading business which will be operated from the owner's home and which will employ four people. The starting capital consists of the owner's savings of $20,000 in the bank. OPERTING DESCIONS: B The business will supply lunches daily, Monday to Friday, to a factory owned by Naz Rudeen. Payment will be received at the end of the month. The business plans to take a small catering job. Payments for these jobs will be received on delivery. O Purchase of perishable goods will be made weekly for cash and non-perishable will be purchased on credit and monthly basis B Employees are to be paid monthly. The bank account will be used for all payments for purchases and wages E The cash account will be used for all other payments ACCOUTING PROCEDURES Financial periods for which accounts will be kept: 1-30 September and 1-31 October. Accounting records kept: General Journal, three-column cash book purchases and sales journals and a general Journal. Business Transactions for both periods: ACTI VITY 1- record in the General Journal the entries on September 1 and 3. September 1 started business by depositing cash in the business bank account $20,000 September 2 withdrew cash from bank for office use $1,000 September 3 an electric deep fryer was purchased on credit from Peters Appliances in Princes town for $1,385 AVTIVITY 2a- draw up purchase invoice with the information given on September 3rd. (Students can create the other information to be included on the invoice such as address and invoice number) September 3 the firm received a purchase invoice from Mega Foods traders for the following 1 case of whole Milk @ 72 per case 2 Cases of seedless raisins $98 per case 1 bale rice $80 50 Ibs sugar @112 A 10% discount is to be applied and the terms of trade are 2½% cash discounts paid in 15 days. ACTIVITY 2b-Enter invoice information into appropriate ledgers and journals. ACTIVITY 3 - draw up a sales invoice for Septembers 30th. Record the relevant transactions in the day books including cash book. (Remember transaction of 1stSept and 2 Nd Sept. September 7th Received cheque $5000 for private catering job September 9th Cash purchases $450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:MUNCHIES CATERER
Munchie's caterers are a small sole trading business which will be operated from the owner's home and
which will employ four people. The starting capital consists of the owner's savings of $20,000 in the
bank.
OPERTING DESCIONS: E The business will supply lunches daily, Monday to Friday, to a factory owned by
Naz Rudeen. Payment will be received at the end of the month. B The business plans to take a small
catering job. Payments for these jobs will be received on delivery. I Purchase of perishable goods will be
made weekly for cash and non-perishable will be purchased on credit and monthly basis E Employees
are to be paid monthly. B The bank account will be used for all payments for purchases and wages E The
cash account will be used for all other payments
ACCOUTING PROCEDURES Financial periods for which accounts will be kept: 1-30 September and 1-31
October. Accounting records kept: General Journal, three-column cash book purchases and sales
journals and a general Journal. Business Transactions for both periods:
ACTI VITY 1- record in the General Journal the entries on September 1 and 3.
September 1 started business by depositing cash in the business bank account $20,000
September 2 withdrew cash from bank for office use $1,000
September 3 an electric deep fryer was purchased on credit from Peters Appliances in Princes town for
$1,385
AVTIVITY 2a- draw up purchase invoice with the information given on September 3rd. (Students can
create the other information to be included on the invoice such as address and invoice number)
September 3 the firm received a purchase invoice from Mega Foods traders for the following
1 case of whole Milk @ 72 per case
2 Cases of seedless raisins $98 per case
1 bale rice $80
50 Ibs sugar @112
A 10% discount is to be applied and the terms of trade are 2 2% cash discounts paid in 15 days.
ACTIVITY 2b-Enter invoice information into appropriate ledgers and journals.
ACTIVITY 3 – draw up a sales invoice for Septembers 30th. Record the relevant transactions in the day
books including cash book. (Remember transaction of 1stSept and 2 Nd Sept.
September 7th Received cheque $5000 for private catering job
September 9th Cash purchases $450

Transcribed Image Text:September 30th paid wages by Cheque $2,896
September 30th sent the following invoice for meals supplied to Naz Rudeen for the month of
September. 8 meals per day @ $10 per meal for 20 days. A 5% cash discount will be given if the bill is
paid by 10th October
ACTIVITY 4- Post entries to the ledgers, balance all accounts and prepare a trial balance as at 30th
September. Prepare a trading and profit and loss account and balance sheet for the period.
ACTIVITY 5 - Draw up either a receipt or bank withdrawal slip for any appropriate transaction. Record all
transactions in the relevant day books.
ACTICITY 6- Post entries to the ledger, balance all accounts and prepare a trial balance
ACTIVITY 7- Draw up a credit note to be sent to Mega Food Traders on 31 October
ACTIVITY 8- prepare a trading and profit And Loss account and Balance sheet as at 31st October.
October 3rd- Rainbow caterers purchased supplies on credit From Mega Food Traders $748
October 9th- Cash Purchases $227
October 15th - Received cheque from Naz Rudeen $1,600
October 17th-Withdrew cash from bank for business use $1,500
October 18th- Received a cheque for $3,000 as payment for private catering job.
October 30th – paid wages 2,896 by cheque
October 30th - Withdrew cash from bank for personal use $500
October 31st- Received a credit note from mega Food Traders for returned good worth $98. These
goods were damaged by water.
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Transcribed Image Text:MUNCHIES CATERER
Munchie's caterers are a small sole trading business which will be operated from the owner's home and
which will employ four people. The starting capital consists of the owner's savings of $20,000 in the
bank.
OPERTING DESCIONS: B The business will supply lunches daily, Monday to Friday, to a factory owned by
Naz Rudeen. Payment will be received at the end of the month. B The business plans to take a small
catering job. Payments for these jobs will be received on delivery. E Purchase of perishable goods will be
made weekly for cash and non-perishable will be purchased on credit and monthly basis Employees
are to be paid monthly. B The bank account will be used for all payments for purchases and wages B The
cash account will be used for all other payments
ACCOUTING PROCEDURES Financial periods for which accounts will be kept: 1-30 September and 1-31
October. Accounting records kept: General Journal, three-column cash book purchases and sales
journals and a general Journal. Business Transactions for both periods:
AVTIVITY 2a- draw up purchase invoice with the information given on September 3rd. (Students can
create the other information to be included on the invoice such as address and invoice number)
September 3 the firm received a purchase invoice from Mega Foods traders for the following
1 case of whole Milk @ 72 per case
2 Cases of seedless raisins $98 per case
1 bale rice $80
50 Ibs sugar @112
A 10% discount is to be applied and the terms of trade are 2 ½% cash discounts paid in 15 days.
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