Assignment- 1

SHA1

ACT 201

WOW Momo started selling momo of various flavours on July 1, 2020. Listed below are the

transactions that occurred in WOW Momo during the month of July:

i. Started business by investing £25,000 in cash.

ii. Purchased equipments worth of £8000 with cash to make momos.

iii. During the month WOW Momo sold momos worth of £3600.

iv. Paid rent of £300 for the month of July, in cash.

v. Sold momos worth of £500 to a regular official client, on account.

vi. Paid restaurant staffs monthly salary of £1600 in cash.

vii. The owner of WOW Momo withdrew £1000 cash from the business for personal use.

viii. Utility bills of £400 incurred, on account.

ix. Advertising cost amounting to £200 was paid for.

x. Collected £500 from clients previously billed (refer to V).

a. Prepare a tabular analysis of WOW Momo’s transactions for the month of July with the aid of the

Accounting Equation.

b. Prepare the Financial Statements for WOW Momo for the month ending July 31, 2020. (Prepare

all the financial statements, except for Statement of Cashflow).

Submission : 26 June, Saturday (5 PM).