COURSE TITLE : PRINCIPLES OF ACCOUNTING

COURSE CODE : ITC 114

LECTURER : MR.FRANK Y. GBADAGO
NAME :
INDEX NUMBER : 5201040
CLASS : ITE 1E

Question 1.
Mafua commenced a trading at Sefwi, near Bibiani at the beginning at the beginning of 2017 known
as M-Venture. The M-Ventures carried out the following transactions in the month of March 2017:

March
1 Started a trading business with cash of GHȼ 150,000.00
2 Opened a business bank account with UMB, Bibiani with the capital
3 Put up a shop at Sefwi for the business costing GHȼ72,000.00, which was paid for with a
cheque drawn on the bankers
4 Purchased trading stocks from Esinam on credit amounting to GHȼ150,000.00
5 Paid GHȼ550 cash for light bills in respect of the shop
10 Returned items amounting to GHȼ5,000.00 to Etornam
11 Sold goods for GHȼ14,500.00 cash
13 Sold goods on credit to Agya Mawuli GHȼ60,000.00, William K GHȼ50,000, Anice
GHȼ45,000.00
16 Received cheque payments from Agya Mawuli GHȼ50,000.00 and William K GHȼ50,000.00
and Anice GHȼ42,000.00
17 Purchased goods from Ama GHȼ50,000.00 on credit
18 Paid Esinam GHȼ55,000.00 a cheque
19 Goods received from Esinam GHȼ239,500.00
20 Paid Esinam GHȼ55,000.00 cheque
21 Paid Esinam a cheque of GHȼ89,500.00
22 Sold goods for GHȼ35,200.00 to cash customers
23 Banked all sales proceeds
25 Cash customer returned goods bought amounting to GHȼ2,100.00
30 Paid the shop assistant wages of GHȼ500.00
31 Goods unsold amounted to GHȼ25,000.00

REQUIRED:
Open the necessary T – accounts for the above transactions.

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 Capital Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
31/03/2017 Bal c/d 150,000 1/03/2017 Cash 150,000

150,000 150,000
01/04/2017
Bal b/d 150,000

Cash Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
1/03/2017 Capital 150,000 2/03/2017 Bank 150,000
11/03/2017 Sales 14,500 5/03/2017 Light bills 550
22/03/2017 Sales 35,200 23/03/2017 Bank 49,700
31/03/2017 Bal c/d 3150 25/03/2017 Refund 2,100
30/03/2017 Wages 500
202850 202850

01/04/2017 Bal b/d 3150

Bank Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
02/03/201 Cash 150,000 3/03/2017 Shop 72,000
7 Agya Mawuli 50,000 18/03/201 Esinam 120,000
16/03/201 William K 50,000 7 Esinam 55,000
7 Anice 42,000 20/03/201 Esinam 89,500
16/03/201 Cash 49,700 7 Bal c/d 70,000
7 341,700 21/03/201 341,700
16/03/201 Bal b/d 7
7 31/03/201
23/03/201 70,000 7
7

01/04/201
7

Shop Account
FOLI NARRATION AMOUN DAT FOLI NARRATION AMOUN
DATE
O S T E O S T
GHȼ GHȼ
3/03/2017 Bank 72,000 Bal c/d 72,000

72,000 72,000
01/04/201 Bal b/d 72,000
7
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 Light Bill Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
5/03/2017 Cash 550 31/03/2017 I/S 550

550 550

Purchase Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
4/03/2017 Esinam 150,000
17/03/2017 Ama 50,000 31/03/2017 I/S 439,500
Esinam 239,500
439,500 439,500

Esinam’s Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
18/03/2017 Bank 120,000 4/03/2017 Purchase 150,000
20/03/2017 Bank 55,000 19/03/2017 Purchases 239,500
21/03/2017 Bank 89,500 31/03/2017 Bal c/d 125,000
389,500 389,500
125,000
1/04/2017 Bal b/d

Returned Outward Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
31/03/201 I/S 5,000 10/03/201 Etornam 5,000
7 7
5,000 5,000

Etornam’s Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
10/03/2017 Returned Outward 5,000 Bal c/d 5,000

5,000 5,000

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 5,000
31/03/2017 Bal b/d

Sales Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
11/03/2017 Cash 14,500
Bal c/d 204700 13/03/2017 Agya Mawuli 60,000
13/03/2017 William K 50,000
13/03/2017 Anice 45,000
22/03/207 Cash 35,200
204700 204700

Bal b/d 204,700

Agya Mawuli’s Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
13/03/2017 Sales 60,000 16/03/2017 Bank 50,000
Bal c/d 10,000
60,000 60,000

Bal b/d 10,000

Williams K. Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
13/03/201 Sales 50,000 16/03/201 Bank 50,000
7 7
50,000 50,000

Anice Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
13/03/2017 Sales 45,000 16/03/2017 Bank 42,000
Bal c/d 3000
45,000 45,000
Bal b/d 3000

Ama’s Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT

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 GHȼ GHȼ
17/03/2017 Purchase 50,000

50,000 50,000

Returned Inwards Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
25/03/2017 Refund Cash 2,100 31/03/2017 I/S 2,100

2,100 2,100

Wages Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
30/03/2017 Cash 500 31/03/2017 I/S 500
500 500

Question 2.
Mr. Etornam Kwame William started a small trading business in Kumasi somewhere at the beginning
of 2018. Etornam registered his business as sole proprietor under business name known as BEK
Ventures. Below are the details of the business transactions for the month of July 2018.

July
1 Started the business with a cash of GHȼ10,000.00
2 A business account was opened with Merchant Bank Ghana Ltd at the Rain Tree Avenue,
Kumasi branch with GHȼ9,000.00
3 Put up a shop Abenkyi market at a cost of GHȼ1,000.00 for which he paid with a cheque drawn
on his bankers
4. Bought on credit trading stocks Megyefo Company Ltd amounting to GHȼ15,000.00
5. Paid GHȼ250 cash to the driver who transported the item the items from Accra to Kumasi for
him
10 He returned some of the stocks, which were not of the expected quality amounting to
GHȼ500.00
11 Sold goods on credit GHȼ3,000.00 cash
13 Sold goods on credit Master Atta and Co for GHȼ5,000, MVP Ltd GHȼ6,500
15 Sold goods on credit to Master Atta and Co for GHȼ6,500
17 Received cheque payment from Master Atta and Co for GHȼ10,000.00 and MVP Ltd for
GHȼ6,500 for goods purchased
18 Paid Megyefo Company Ltd a cheque of GHȼ15,000.00
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19 Received goods worth GHȼ12,650 from Megyefo Company Ltd
20 Paid GHȼ350.00 to the driver who brought the items from Accra to Kumasi
21 Paid Megyefo Company Ltd for goods delivered
22 Sold good for GHȼ18,120 to cash customers
23 Banked all sales proceeds
25 Cash customer returned some goods bought amounting to GHȼ100.00 cash refunds since was
not the colour they required
30 Paid wages and salaries to his workers GHȼ1,100.00

REQUIRED:
Open the necessary T – accounts for the above transactions.

Capital Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
Bal c/d 10,000 1/07/2018 Cash 10,000

10,000 10,000

Bal b/d 10,000

Cash Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
1/07/2018 Capital 10,000 2/07/2018 Bank 9,000
11/07/2018 Sales 3,000 5/07/2018 Transport 250
22/07/2018 Sales 18,120 20/07/2018 Transport 350
21/07/2018 Megyefo Company 12,650
31/07/2018 Bal c/d 12350 23/07/2018 Bank 21,120
25/07/2018 Returned Inwards 100
43470 43470

01/08/2018 Bal b/d 12350

Bank Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
2/07/2018 Cash 9,000 3/07/2018 Shop 1,000
17/07/201 Master Atta and Co 10,000 18/07/201 Megyefo 15,000
8 MVP Ltd 6,500 8 Bal c/d 9500
17/07/201 25500 31/07/201 25500
8 Bal b/d 9500 8

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0108/2018

Shop Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
3/07/2018 Bank 1,000 31/07/2018 Bal c/d 1,000

1,000 1,000
01/08/2018 Bal b/d 1,000

Megyefo Company Ltd

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
10/07/201 Returned Outward 5,000 4/07/2018 Purchases 15,000
8 Bank 15,000 19/07/2018 Purchases 12,650
18/07/201 Cash 12,650 31/07/2018 Bal c/d 5,000
8
21/07/201
32,650 32,650
8
Bal b/d 5000

01/08/201
8

Purchases Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
4/07/2018 Megyefo 15,000 31/07/2018 Bal c/d 27650
19/07/2018 Company 12,650

27650 27650

Bal b/d 27650

Transport Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
5/07/2018 Cash 250 31/07/2018 Bal c/d 600
20/07/2018 Cash 350
600 600

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01/08/2018 Bal b/d 600

Returned Outwards Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
31/07/2018 Bal c/d 5,000 10/07/2018 Megyefo 5,000

5,000 5,000

01/08/2018 Bal b/d 5,000

Sales Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
31/07/2018 Bal c/d 391290 11/07/2018 Cash 3,000
13/07/2018 Master Atta and Co 5,000
13/07/2018 MVP Ltd 6,500
15/07/2018 Master Atta and Co 6,500
22/07/2018 Cash 18,120
391290 391290

01/08/2018 Bal b/d 391290

Master Atta And Co. Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT

GHȼ GHȼ
13/07/2018 Sales 5,000 17/07/2018 Bank 10,000
15/07/2017 Sales 6,500 31/07/2018 Bal c/d 1,500

11500 11500
01/08/2018 Bal b/d 1,500

MVP Ltd Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
13/07/2018 Sales 6,500 17/07/2018 Bank 6,500

6,500 6,500

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 Returned Inwards Account
DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
25/07/2018 Refund Cash 100 I/S 100

100 100

Wages and Salaries Account

DATE FOLIO NARRATIONS AMOUNT DATE FOLIO NARRATIONS AMOUNT
GHȼ GHȼ
30/07/2018 Cash 1,100 31/07/2017 Bal c/d 1,100

1,100 1,100
01/08/2018 Bal b/d 1,100

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