David Wise is setting up a new business in January 2020 before COVID-19 outbreak was started. He is unclear about Journal entries for some transactions in February 2020 as follows: Feb 1: Office Fixtures originally bought for £350 was returned to the supplier Asma Ltd, as it was unsuitable. Full allowance will be given for this. Feb 4: A debt of £85 owing from S. Keyes was written off as a bad debt Feb 9: Bought a Machinery from TS Co. to use in the company. The total purchasing value of the machine is £2,300. The owner paid only £200 by issuing a cheque and rest of the purchasing value would remain as credit. Feb 13: The business is owed £270 by S. Hill. He is declared bankrupt and we received £220 in full settlement of the debt. Feb 20: The owner takes goods costing £180 out of the business inventory for personal use without paying for them. Feb 26: in Jan 2020, the owner paid an insurance bill thinking that it was in respect of the business. We now discover that £85of the amount paid was in fact insurance of our private house. Feb 28 The owner paid half of the machinery debt to TS Co.by issuing a cheque. Required: You are required to show the Journal entries (only) (with narrative) necessary to record the following items which occur in Feb 2020
David Wise is setting up a new business in January 2020 before COVID-19 outbreak was started.
He is unclear about
Feb 1: Office Fixtures originally bought for £350 was returned to the supplier Asma Ltd, as it
was unsuitable. Full allowance will be given for this.
Feb 4: A debt of £85 owing from S. Keyes was written off as a
Feb 9: Bought a Machinery from TS Co. to use in the company. The total purchasing value of
the machine is £2,300. The owner paid only £200 by issuing a cheque and rest of the
purchasing value would remain as credit.
Feb 13: The business is owed £270 by S. Hill. He is declared bankrupt and we received £220 in
full settlement of the debt.
Feb 20: The owner takes goods costing £180 out of the business inventory for personal use
without paying for them.
Feb 26: in Jan 2020, the owner paid an insurance bill thinking that it was in respect of the
business. We now discover that £85of the amount paid was in fact insurance of our
private house.
Feb 28 The owner paid half of the machinery debt to TS Co.by issuing a cheque.
Required:
You are required to show the Journal entries (only) (with narrative) necessary to record the
following items which occur in Feb 2020
please send the answres within 30 mins
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
