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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. According to Simpson Ltd'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.
Transcribed Image Text:1. According to Simpson Ltd'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.
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