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)

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Description: Q2) Katie is a trader and carried out followingtransactions during Oct 20-4.The following transactions took place inOctober 20-4:October 2 Bought goods on credit from Zara, $15007 Returned goods to Zara, $80 ( hint: One entrywill be purchase return

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

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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