Question Three The following transactions relate to Kwaabota Enterprise for the month of March 2021. March: 1 commenced business with GHc 18,000 at the bank 2 purchased office computers GHc 3,000 3 bought goods worth GHc 8,000 4 cash sales GHc 12,000 5 cash deposited at bank GHc 7,000 6 paid commission for salesmen GHc 500 7 sold goods to Asare on credit GHc 1,500 8 bought goods on credit from Adwoa Ayongo GHc 20,000 9 received GHc 800 from Asare 10 paid for utilities GHc 200 11 paid by cheque an amount of GHc16,000 to Adwoa Ayongo 12 cash sales immediately deposited at bank Ghc 4,000 13 paid salaries by cheque Ghc 1,100 14 injected additional Ghc22,000 into the business 15 Withdrew Ghc1, 500 from the bank for office use. Question Four A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. It is also called the second book of entry. The ledger contains the information that is required to prepare financial statements. It includes accounts for assets, liabilities, owners’ equity, revenues and expenses. This complete list of accounts is known as the chart of accounts. The ledger represents every active account on the list. a) From the transactions in question three (Q.3) above, post the journal entries to their respective ledgers b) Prove the accuracy of the entries made using the trial balance.

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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Question Three The following transactions relate to Kwaabota Enterprise for the month of March 2021. March: 1 commenced business with GHc 18,000 at the bank 2 purchased office computers GHc 3,000 3 bought goods worth GHc 8,000 4 cash sales GHc 12,000 5 cash deposited at bank GHc 7,000 6 paid commission for salesmen GHc 500 7 sold goods to Asare on credit GHc 1,500 8 bought goods on credit from Adwoa Ayongo GHc 20,000 9 received GHc 800 from Asare 10 paid for utilities GHc 200 11 paid by cheque an amount of GHc16,000 to Adwoa Ayongo 12 cash sales immediately deposited at bank Ghc 4,000 13 paid salaries by cheque Ghc 1,100 14 injected additional Ghc22,000 into the business 15 Withdrew Ghc1, 500 from the bank for office use. Question Four A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. It is also called the second book of entry. The ledger contains the information that is required to prepare financial statements. It includes accounts for assets, liabilities, owners’ equity, revenues and expenses. This complete list of accounts is known as the chart of accounts. The ledger represents every active account on the list. a) From the transactions in question three (Q.3) above, post the journal entries to their respective ledgers b) Prove the accuracy of the entries made using the trial balance.

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