Revision

part 1- the Journal

RECORDING BUSINESS TRANSACTIONS

Week 7
• 1st Bought fixture on credit from Big Bang Co £1,153.
•  
• 4th David take goods costing £340 out of the business inventory without paying for them.
•  
• 12th B. McLay owes us £640. He is unable to pay his debt. We agree to take some computer equipment from him at that value and
so cancel the debt.
•  
• 18th Some of the fixtures bought from Big Bang Co. £42 worth, are found to be unsuitable and are returned to them for full
allowance.
•  
• 24th A debt owing to us by P. Carl of £124 is written off as a bad debt.
•  
• 30th Office equipment bought on credit from furniture Comfort Ltd for £1,710.
•  
• Required:
•
• Record the various transactions via journal entries with narratives
1st Bought fixture on credit from Big Bang Co £1,153.

 Date Double entry Dr   Cr

01/01/2020 Fixtures
1,153
Big Bang Co.
 
  1,153
 
Being fixtures bought on credit from Big Bang Co    
4th David take goods costing £340 out of the business inventory without paying for them.

 Date Double entry Dr   Cr

Drawings
3/1/2020 340 

  Purchases 340

Being Inventory taken for personal use     

12th B. McLay owes us £640. He is unable to pay his debt. We agree to take some computer equipment from him at that value and so cancel the debt.

Computer
12/1/2020 640 
B. McLay
  640
Being Computer received in payment of
debt    
18th Some of the fixtures bought from Big Bang Co. £42 worth, are found to be unsuitable and are returned to
them for full allowance.

Big Bang Co.  42

18/1/2020  
 42
  Fixtures

 Being return of fixtures unsuitable for use  

24th A debt owing to us by P. Carl of £124 is written off as a bad debt.

Bad debt
24/1/2020 124 
P. Carl
124

Being Bad debt written off.     

 30th Office equipment bought on credit from furniture Comfort Ltd for £1,710.

30/1/2020 Office equipment 1,710 

Furniture Comfort Ltd   1,710
Being office furniture bought on credit from Furniture
Comfort Ltd.    
Date Double entry Dr Cr
01/01/2020 Fixtures 1,153
1,153
Big Bang Co. 1,153 1,153
Being fixtures bought on credit from Big Bang Co

b. Drawings 340
Purchases 340
Being Inventory taken for personal use

c. Computer 640
B. McLay 640
Being Computer received in payment of debt

d. Big Bang Co.

Fixtures 42 42
Being return of fixtures unsuitable for use 42

Bad debt 124

P. Carl 124
Being Bad debt written off.

d. Offi ce equipment 1,710

1,710
Furniture Comfort Ltd 1,710 1,710
Being offi ce furniture bought on credit from Furniture Comfort Ltd.
 Revision
part 2- the Ledger (T accounts) and Trial Balance

RECORDING BUSINESS TRANSACTIONS

Week 7
Questions
• J. Maurice has the following transactions at for the month June 2017.
•  
• 2017
• June 1 Started business with £16,000 in the bank
• 2 Bought van paying by cheque £6,400
• 5 Bought office fixtures £900 on credit from Old Ltd
• 8 Bought van on credit from Carton Cars Ltd £7,100
• 12 Took £180 out of the bank and put it into the cash till
• 15 Bought office fixtures paying by cash £120
• 19 Paid Carton Cars Ltd a cheque for £7,100
• 21 A loan of £500 cash is received from B. Berry
• 25 Paid £400 of the cash in hand into the bank accounts
• 30 Bought more office fixtures paying by cheque £480

• Required:
•  
• Write up the transactions in the general ledger of J. Maurice
 Capital Van Old Ltd Carton Cars
  1/6 16,000 2/6 Bank 6,400    
  8/6 Carton 7,100   5/6 Fixtures 900 19/6 Bank 7,100 8/6 Van 7,100
       
       
   
       
bal c/d 16,000     bal c/d 13,500    
16,000 16,000 13,500 13,500 bal c/d 900      
b/d 16,000 b/d 13,500 900 900 7,100 7,100
bal c/d 900

Bank Office Fixtures

1/6 Capital 16,000 2/6 Van 6,400 5/6 Old 900 Cash B. Berry Loan
5/6 Cash 400 12/6 Cash 180 15/6 Cash 120    
  10/6 Carton 7,100 30/6 Bank 480 12/6 Bank 180 15/6 Fixtures 120   21/6 Cash 500
  30/6 Fixtures 480   21/6 Loan 500 23/6 Bank 400  
   
       
       
  bal c/d 2,240   bal c/d 1,500    
16,400 16,400 1,500 1,500   bal c/d 160 bal c/d 500  
b/d 2,240 bal b/d 1,500 680 680 500 500
bal b/d 500
 J. Maurice
Trial Balance as at 31 December 2019
Accounts
DR CR
Fixtures 1,500
Van 13,500
Bank 2,240
Cash 160
Old Ltd 900
Loan (B. Berry) 500
Capital 16,000

17,400 17,400