Journal Entry In the attached question, kindly help in clarifying is it is necessary to create journal entries for assessts and liabilities established on 1 Sep 2021 or it is sufficient to create journal entries only for the unsure transactions.If journal entries for assessts and liabilities established on 1 Sep 2021 are to be created, kindly review if the attached answer is correct . F Polk, after being in Bakery business for some years without keeping proper records, now decidesto keep a double entry set of books. On 1 September 2021 he establishes that his assets andliabilities are as follows: Assets: Van £5,700, Fixtures £2,800, Stock £5,200, Debtors -P Mullen£105, M Abel £311, Bank £1060, Cash £85. Liabilities: Creditors - Syme Ltd £229, A Hill £80.(1)He is not sure about Journal entries for the following transactions in September 2021 as follows:Sep 1: A debt of £105 owing from P Mullen was written off as a bad debtSep 5: Office Fixtures originally bought by credit for £150 was returned to the supplier Syme Ltd., asit was unsuitable. Full allowance will be given for this.Sep 10: The business is owed £311 by M. Abel. He is declared bankrupt and we only received£180 cash in full settlement of the debt.Page | 9Sep 18: Bought a Machinery from Brown Ltd. to use in the company. The total purchasing value ofthe machine is £1,800. The owner paid £100 cash, £500 by issuing a cheque and rest ofthe purchasing value would remain as credit.Sep 26 The owner paid half of the machinery debt to Brown Ltd. by issuing a cheque.Sep 28: The owner paid £130 an insurance bill via cheque thinking that it was in respect of thebusiness. We now discover that £70 of the amount paid was in fact insurance of our privatehouse.Required:You are required to show the Journal entries (only) (with narrative) necessary to record the itemswhich occur in Sep 2021. Jounal EntryDateParticularDebitCredit01-Sep-21Vehicle A/C5700Cash570001-Sep-21Fixtures2800Cash280001-Sep-21Stock5200Cash520001-Sep-21Accounts Receivable (P Mullen)105Debtors A/C10501-Sep-21Accounts Receivable (M Abel)311Debtors A/C31101-Sep-21Capital A/C1080Bank108001-Sep-21Capital A/C85Cash8501-Sep-21Account Payable - Syme Ltd229Cash22901-Sep-21Account Payable - A Hill80Cash8001-Sep-21Allowance for Doubtful Accounts£105Accounts Receivable (P Mullen)£105To record written-off bad debtAccounts Payable - Syme Ltd05-Sep-21£150Purchase returns and allowances£150To record unsuitable office fixtures returned to supplier10-Sep-21Allowance for Doubtful Accounts£311Accounts Receivable (M. Abel)£131Cash£180To record write-off customer's accountMachinery A/CAccounts Payable - Brown Ltd.18-Sep-21£1,800£1,200Bank£500Cash£100To record the purchase of machineryAccounts Payable - Brown Ltd.26-Sep-21£600Bank£600To record payment made to machinery supplier28-Sep-21BankAccounts Receivable - Insurance A/C£60£70Bank£130To record payment made towards insurance bill£18,686£18,686

Name: Journal Entry In the attached question, kindly help in clarifying is i
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Journal Entry In the attached question, kindly help in clarifying is it is necessary to create journal entries for assessts and liabilities established on 1 Sep 2021 or it is sufficient to create journal entries only for the unsure transactions.If jo