NKUHLU DEPARTMENT OF ACCOUNTING

Accounting for Attorneys

AAT323E
Unit 2 – Lecture Example

IGNORE VAT

Mr. J.Ransom a started a Law Practice and entered into the following transactions during March 2010.

March

1 Ransom opens his own Law Practice with a cash investment of R 50,000. Receipt 001 was issued.

3 Pays shop rental of R 2,500 – issued cheque # 100.

5 Purchased furniture to the value of R1,200 from modern furnishers on credit. Received invoice # 212 from the
supplier.

7. Paid Modern furnishers R600 – cheque # 101 was issued

Mr. Ransom issued cheque # 104 for R 300 to start a petty cash.

15 Purchased stationery costing R 6,000 from their supplier on account. Invoice # 252 was received.

17 After inspection of the stationery it was determined that some of the stationery items were damaged and these
items were returned. The supplier issued a credit note of R1,375 for the stationery returned.

19 Invoiced the following clients for services rendered: Mr E Erasmus - R 1,600 and Mrs J. Du Toit - R 1,350. Issued
invoices 101 & 102 respectively.

25 Withdrew cash of R500 for his own use from the business – cheque 102 was issued.

28 Received cash from debtor E. Erasmus for the full invoice amount outstanding, issued receipt #003.

28 Rendered legal services for cash amounting of R 2,475, issued receipt # 004 to M Josias.

29 Paid salaries of R 600 – cheque # 103 was issued.

30 Mrs. J Du Toit was unhappy with some of the legal advice received from Mr Ransom. Mr. Ransom decided to provide
Mrs J Du Toit with a discount and issued a debit note amounting to R 350 to her.

31 Mr. Ransom needed to purchase some cleaning products for the office, issued petty cash voucher 111 for an amount
of R150.

YOU ARE REQUIRED TO:

(a) Record the above transactions in the correct journals:

 Business Cash Payments Journal
 Business Cash Receipts Journal
 Petty Cash Journal
 Fees Journal
 General Journal