2.1 The double entry system of book-keeping (3)

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1.

Question 3

A company uses the following ledger accounts:

  • Equipment: £10,000
  • Cash: £2,000
  • Debtors: £3,000
  • Creditors: £1,500
  • Revenue: £8,000
  • Rent Expense: £1,000
Prepare a trial balance as at 31st December 2023.
2.

Question 3

The following transactions occurred at Green Grocers during January 2024:

  • Received £3,000 cash from customers.
  • Made a payment of £800 to suppliers on credit.
  • Received £1,500 from customers on account.
  • Paid £400 for advertising.
  • Received £2,000 from the bank as a loan.

Prepare a statement of changes in the balances of the following accounts as at 31st January 2024:

  • Cash on Hand
  • Accounts Payable
  • Loan from Bank
3.

Question 2: The following transactions occurred at XYZ Ltd during the month of June 2024:

  • 1st June: Cash balance = £4,000
  • 5th June: Sales on credit = £6,000
  • 10th June: Payment to suppliers = £2,500
  • 15th June: Receipt from debtors = £3,000
  • 20th June: Purchase of inventory for cash = £1,800
  • 25th June: Payment of rent = £800

Required: Prepare ledger accounts for Cash, Debtors, Creditors and Inventory.