Q2) Katie is a trader and carried out following transactions during Oct 20-4. The following transactions took place in October 20-4: October 2 Bought goods on credit from Zara, $1500 7 Returned goods to Zara, $80 (hint: One entry will be purchase return which is always credited) 14 Paid Zara a cheque for the amount owing on 1 October 20-4 21 Cash received from sales of goods, paid directly into the bank, $940 ( hint: This entry will not be added to Zara trade payable account) 28 Katie took goods for her own use, $140 -Opening balance on 1st Oct 20-4 in Zaras account was $ 1760. a) prepare general journal entries for the above transactions: b) Prepare Zaras account in the book of Katie and balance the bank account and Zara's account and bring down the balances on 1 November 20-4. Hint: Zaras account will be the Trade payable/accounts payable account)
Q2) Katie is a trader and carried out following transactions during Oct 20-4. The following transactions took place in October 20-4: October 2 Bought goods on credit from Zara, $1500 7 Returned goods to Zara, $80 (hint: One entry will be purchase return which is always credited) 14 Paid Zara a cheque for the amount owing on 1 October 20-4 21 Cash received from sales of goods, paid directly into the bank, $940 ( hint: This entry will not be added to Zara trade payable account) 28 Katie took goods for her own use, $140 -Opening balance on 1st Oct 20-4 in Zaras account was $ 1760. a) prepare general journal entries for the above transactions: b) Prepare Zaras account in the book of Katie and balance the bank account and Zara's account and bring down the balances on 1 November 20-4. Hint: Zaras account will be the Trade payable/accounts payable account)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Q2) Katie is a trader and carried out following
transactions during Oct 20-4.
The following transactions took place in
October 20-4:
October 2 Bought goods on credit from Zara, $1500
7 Returned goods to Zara, $80 ( hint: One entry
will be purchase return which is always credited)
14 Paid Zara a cheque for the amount owing on
1 October 20-4
21 Cash received from sales of goods, paid
directly into the bank, $940 (hint: This entry will not
be added to Zara trade
payable account)
28 Katie took goods for her own use, $140
-Opening balance on 1st Oct 20-4 in Zaras account
was $ 1760.
a) prepare general journal entries for the above
transactions:
b) Prepare Zaras account in the book of Katie and
balance the bank account and Zara's account and bring
down the balances on 1 November 20-4.
Hint: Zaras account will be the Trade payable/accounts
payable account)
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