Q.1 The following balances were extracted from the books of ALL DIE BE DIE Enterprise for the month of August 2020.
Office Furniture
GH₵150,000
Cash on hand
GH₵ 70,000
Bank Balance
GH₵200,000
Debtors:
Ascertain
GH₵
1,200
Freeman
GH₵8,000
Creditors
Suzzy
GH₵
26,000
Pao
GH₵14,000
The following transactions took place during the month of September 2020:
1
Paid cash 13,000 for rent.
2
Credit Sales: Ascertain GH₵50,000, Joe GH₵55,000 Freeman GH₵117,000.
3
Cash Sales GH₵150,000.
4
Credit Purchases: Suzzy GH₵30,000, Jane GH₵35,000, Pao GH₵59,000.
4
Received cheques Ascertain: GH₵40,000, Joe GH₵1,000, Freeman GH₵ 96000
6
Paid cheques: Suzzy GH₵ 24,000 (Discount GH₵2,000), Jane GH₵20,000, Pao
GH₵40,000.
8
Return Inwards: Ascertain 10,000, Joe GH₵1,000, Freeman GH₵3,000
10 Return Outwards: Jane GH₵3,000, Pao GH₵1,000.
12
Credit Sales: Ascertain GH₵50,000, Joe GH₵40,000, Freeman GH₵15,000.
15
Cash Sales GH₵180,000
16
Paid Insurance GH₵50,000
16
Credit purchases: Jane GH₵12,500, Pao GH₵20,500, Suzzy GH₵18,000
17
Cash Sales GH₵120,000.
17
Received Cheques: Ascertain GH₵20,000 (Discount GH₵ 1,000) Joe
GH₵27,000, Freeman GH₵ 8,500 (Discount 1,500).
18
Paid cheques Suzzy GH₵15,000, Jane GH₵GH₵18,000 (Discount GH₵500)
Pao GH₵ 21,000 (Discount GH₵ 1,500).
20
Cash purchases GH₵120,000
2
25
Paid cash into Bank GH₵150,000
28
Purchased office furniture by cheque GH₵250,000
Required:
i. Write up the above transactions in the relevant Books of Original Entry and determine the Opening Capital
ii. Write up the three - column cash book.
iii. Post to the relevant personal and impersonal ledgers.
iv. Prepare a Trial Balance.
2