Elvis commences trading 1 August 2014 preparing accounts to 31 August. His transactions in his first month were as follows: 1/08 - Started business with £2,000 in the bank. 2/08 - Purchased goods £175 on credit from M Mills. 3/08 - Bought fixtures and fittings £150 paying by cheque. 5/08 - Sold goods for cash £275. 6/08 - Bought goods on credit £114 from S Waites. 10/08 - Paid rent by cash £15. 12/08 - Bought stationery £27, paying in cash. 18/08 - Goods returned to M Mills £23. 21/08 - Let off part of the premises receiving rent by cheque £5. 23/08 - Sold goods on credit to U Henry for £77. 24/08 - Bought a motor van paying by cheque £300. 30/08 - Paid the month’s wages by cash £117. 31/08 - Elvis took cash for himself £44. REQUIRED: With double entry record the transactions in T-accounts Balance the accounts and bring down an opening balance as at 1st September 2014 Prepare a Trial balance as at 31st August 2014
Elvis commences trading 1 August 2014 preparing accounts to 31 August. His transactions in his first month were as follows: 1/08 - Started business with £2,000 in the bank. 2/08 - Purchased goods £175 on credit from M Mills. 3/08 - Bought fixtures and fittings £150 paying by cheque. 5/08 - Sold goods for cash £275. 6/08 - Bought goods on credit £114 from S Waites. 10/08 - Paid rent by cash £15. 12/08 - Bought stationery £27, paying in cash. 18/08 - Goods returned to M Mills £23. 21/08 - Let off part of the premises receiving rent by cheque £5. 23/08 - Sold goods on credit to U Henry for £77. 24/08 - Bought a motor van paying by cheque £300. 30/08 - Paid the month’s wages by cash £117. 31/08 - Elvis took cash for himself £44. REQUIRED: With double entry record the transactions in T-accounts Balance the accounts and bring down an opening balance as at 1st September 2014 Prepare a Trial balance as at 31st August 2014
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Elvis commences trading 1 August 2014 preparing accounts to 31 August. His transactions in his first month were as follows:
1/08 - Started business with £2,000 in the bank.
2/08 - Purchased goods £175 on credit from M Mills.
3/08 - Bought fixtures and fittings £150 paying by cheque.
5/08 - Sold goods for cash £275.
6/08 - Bought goods on credit £114 from S Waites.
10/08 - Paid rent by cash £15.
12/08 - Bought stationery £27, paying in cash.
18/08 - Goods returned to M Mills £23.
21/08 - Let off part of the premises receiving rent by cheque £5.
23/08 - Sold goods on credit to U Henry for £77.
24/08 - Bought a motor van paying by cheque £300.
30/08 - Paid the month’s wages by cash £117.
31/08 - Elvis took cash for himself £44.
REQUIRED:
- With double entry record the transactions in T-accounts
- Balance the accounts and bring down an opening balance as at 1st September 2014
- Prepare a
Trial balance as at 31st August 2014
Assuming inventory at 31st August 2014 is £120 –
- Prepare an Income statement (P&L account) for the period ended 31st August 2014 and a
Statement of Financial Position (Balance Sheet) as at that date for Elvis.
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