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.

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.

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

a) Make the journal entries for the above transactions b) Examine the role of accounting concepts and conventions in the preparation of financial statements

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.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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