Question

6.3A Record the following details relating to a carpet retailer for the month of November 2017 and extract a trial balance as at 30 November 2017. 2017 Nov 1 3 5 6 7 Started in business with £15,000 in the bank. Bought goods on time from: J. Small £290; F. Brown £1,200; T. Rae E610: R. Charles £530. Cash sales £610. Paid rent by cheque £175. Paid business rates by cheque £130.

Answer 1

	Journal entries;
Date	Account's tittle	Debit £	Credit £
2017
1-Nov	Bank	15,000
	Owner's Capital		15,000.00
	( To be record owner's capital )
3-Nov	Merchandise Inventory ( 290 + 1,200 + 610 + 530 )	2,630
	Accounts payable		2,630
	( To be record purchase of inventory from various parties on credit )
5-Nov	Cash	610
	Sales Revenue		610
	( To be record cash sales )
6-Nov	Rent Expenses	175
	Bank		175
	(To record payment of rent by cheque )
7-Nov	Business Rates	130
	Bank		130
	( To record paid business rates by cheque )
11-Nov	Accounts Receivable ( 85 + 48 + 1,640 )	1,773
	Sales Revenue		1,773
	( To record sales to various customers on credit )
17-Nov	Wages Expenses	290
	Cash		290
	( To record payment of wages by cash )
18-Nov	Accounts payable ( 18 + 27 )	45
	Merchandise Inventory		45
	( Goods returned )
19-Nov	Merchandise Inventory ( 110 + 320 + 165 )	595
	Accounts payable		595
	( To be record purchase of inventory from various parties on credit )
20-Nov	Sales Revenue ( 6 + 14 )	20
	Accounts Receivable		20
	(Goods returned to us)
21-Nov	Van	4,950
	Accounts payable - Turnkey Motors		4,950
	(To record purchase of Van on credit)
23-Nov	Accounts Payable ( 272 + 1,200 + 500 )	1,972
	Bank		1,972
	( To record issue of cheques to the suppliers)
25-Nov	Van	6,200
	Bank		6,200
	(To record purchase of Van by cash)
26-Nov	Cash	750
	Loan payable- B. Bennet		750
	( To record loan from B. Bennet )
28-Nov	Bank ( 71 + 42 )	113
	Accounts Receivable		113
	( To record cheque received from customers )
30-Nov	Bank	900
	Owner's capital		900
	( To record additional capital )
	Trial Balance
	ended 30 November 2017
		Debit £	Credit £
	Bank	7,536
	Cash	1,070
	Owner's Capital		15,900
	Accounts Receivable	1,640
	Accounts Payable		1,208
	Accounts payable - Turnkey Motors		4,950
	Loan payable- B. Bennet		750
	Van	11,150
	Merchandise Inventory	3,180
	Sales Revenue		2,363
	Rent Expenses	175
	Business Rates	130
	Wages Expenses	290
	TOTAL	25,171	25,171