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    Hit A Century

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    JP Morgan
    Hit-a-Century Ltd is a cricket bat dealer that experienced the following transactions in April 2022: 1) They hired a purchase manager, purchased bats and office furniture on credit, paid rent and insurance, and sold bats to customers. 2) Transactions included purchases and sales of bats, payment of suppliers, receipt of payment from customers, and payment of expenses like salaries and auditors fees. 3) By the end of the month, they had prepared journal entries and updated their trial balance.

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    Hit A Century

    Uploaded by

    JP Morgan
    10 views2 pages
    Hit-a-Century Ltd is a cricket bat dealer that experienced the following transactions in April 2022: 1) They hired a purchase manager, purchased bats and office furniture on credit, paid rent and insurance, and sold bats to customers. 2) Transactions included purchases and sales of bats, payment of suppliers, receipt of payment from customers, and payment of expenses like salaries and auditors fees. 3) By the end of the month, they had prepared journal entries and updated their trial balance.

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    Hit a Century

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    Hit-a-Century Ltd is a cricket bat dealer that experienced the following transactions in April 2022: 1) They hired a purchase manager, purchased bats and office furniture on credit, paid rent and insurance, and sold bats to customers. 2) Transactions included purchases and sales of bats, payment of suppliers, receipt of payment from customers, and payment of expenses like salaries and auditors fees. 3) By the end of the month, they had prepared journal entries and updated their trial balance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    10 views2 pages

    Hit A Century

    Uploaded by

    JP Morgan
    Hit-a-Century Ltd is a cricket bat dealer that experienced the following transactions in April 2022: 1) They hired a purchase manager, purchased bats and office furniture on credit, paid rent and insurance, and sold bats to customers. 2) Transactions included purchases and sales of bats, payment of suppliers, receipt of payment from customers, and payment of expenses like salaries and auditors fees. 3) By the end of the month, they had prepared journal entries and updated their trial balance.

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    of 2

    Hit- a- Century Ltd

    Googly started Hit a century Ltd as a dealer in special cricket Bats. The opening balance sheet as on
    31/3/2022 at the beginning of the year is given below. The following transactions took place during the month
    of April 2022.

    1. Apr 3rd : Appointed Fowler purchase manager at a salary of Rs. 10,000 per month. Salary is usually paid
    on the last day of the month.
    2. 4th The company entered into an agreement with M/s. Lee Inc for supply of Bats. The price for each Bat
    was fixed at Rs. 304/-
    4th : Issued a cheque for Rs.50,000 towards deposit for the business premises taken on a rent of Rs.5000 per
    month. Rent for each month is payable on the first day of the following month .(Generous)
    3. 5 Apr Bought office furniture costing Rs.30,000/- under the “special bank loan’ scheme. The loan is
    repayable in 3 installments of Rs.10,000/- from June. The annual simple interest was fixed at 18 % per
    annum. Interest is payable on the last date of the month.
    5th April Purchased on credit, 100 Bats @ Rs.304 per Bat from M/s. Lee Inc.
    4. M/s Lee Inc wrote to the company and informed them of the increase in prices of Bats to Rs. 360. They
    were however willing to give a discount of Rs. 4 per Bat on a minimum order of 50 Bats.
    5. 7th Purchased on Credit 50 Bats @ Rs. 356 per Bat . Amount payable after 15 days.
    6. 8th April Purchased on credit 50 Bats @ Rs.256 per Bat from Lee Inc. Lee Inc was able to reduce the prices
    due to reduction in GST rates.
    7. 14th Sold 150 Bats on credit, Rs.400 per Bat to Lara Inc. Credit terms 15 days.
    8. 15th Paid Rs.30,000 by cheque to suppliers of Bats M/s. Lee Inc
    9. 16th: Paid cash Rs.6000 being premium for insurance of office premises etc. for one year.
    10. Lara Inc returned 10 Bats sold for Rs. 400 per Bat.
    11. 2th Lara Inc settled all the dues. A 1% sales discount was given for early payment.
    12. Koli paid Rs. 10000 advance in cash for supply of bats on 2nd May.
    13. 30th Paid Salary to employee for April, Rs. 3000 by cheque.
    14. An invoice of Rs. 2000 raised by the auditor remained unpaid.
    15. 19 Depreciation on furniture to be provided @ 12% p.a. on cost

    Prepare Journal Entries for the above transaction. Post them in Ledger and Prepare a Trial Balance

    Opening Balance Sheet as on April 1

    Assets

    PPE 25000

    Trade Receivables -Alpha 30000


    Cash 20000
    Bank Balance 23000
    Total 98000

    Share Capital 45000


    Retained Earnings 12000
    Borrowings @ 12% pa 20000
    Trade Payable - CCIL 21000

    Total 98000

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