Question

4.4A Write up the following transactions in the T-accounts of F. Fernandes Started in business with £11.000 in the bank and £1,600 cash. 2 Bought goods on time: J. Biggs £830; D. Martin £610; P. Lot 1590 3 Bought goods for cash £370. 4 Paid rent in cash £75. 5 Bought stationery paying by cheque £62. 6 Sold goods on time: D. Twigg £370; B. Hogan £290; K. Fletcher £410. 7 Paid wages in cash £160. 10 We returned goods to D. Martin £195. 11 Paid rent in cash £75. 13 B. Hogan returns goods to us £35. 15 Sold goods on time to: T. Lee £205; F. Sharp £280; G. Rae £426. 16 Paid business rates by cheque £970. 18 Paid insurance in cash f280. 19 Paid rent by cheque £75. 20 Bought van on time from B. Black £6,100. 21 Paid motor expenses in cash £24. 23 Paid wages in cash £170. 24 Received part of amount owing from K. Fletcher by cheque £250. 28 Received refund of business rates £45 by cheque. 28 Paid by cheque: J. Biggs £830; D. Martin £415; B. Black £6,100.

how to solve that question?
thank you.

Answer 1

You Have to prepare T- Account Based on given transaction.

T Account is presentation for double entry bookkeeping showing Debit and credit transaction.

Debit Means - Increase in Assets, Expenses and Capital

Decrease in Liability, Expenses and capital

Credit Means - Increase in Liability, Income and Capital

Decrease in Assets, Income,and capital

Assume that all purchase material Sold.

To Solve this You have to first understand the accounting entries of each transaction which is as follows.

Date Accounting entries in the books of Mr. F Fernandes Particulats Debit £ | Credit £ Cash 1600 Bank 11000 To Capital Account 12600 2030 Purchase To J. Biggs To D Martin To P Lot 590 Purchase To Cash 370 Rent Exp To Cash Stationery exp TO Bank D. Twigg B. Hogan K. Fletcher To Sales Wages To Cash D Martin To Purchase Rent Exp To Cash Sales B I . Hogan 35 T. Lee F. Sharp G. Rae To Sales 911 Rates To Cash 970 280 nsurance Exp To Cash 280 Rent Exp To Bank 75 6100 Van- Fixed Assets To B. Black 6100 Motor Exp To Cash Wages To Cash 170 Bank 250 To K. Fletcher 250 Bank To Rates 830 J. Biggs D. Martin B. Black To Bank 415 6100 7345

Following are the different T Account as per above Transaction

Mr. F Femades Capital Account Amount Date Credit Profit and loss (LOSS Profit and Loss Pro Balance CHF Dare Debit Capital Purchase Deze bebit Ketcher Purchase des A D. Vain Balance Balance Vie Fernades AR OTWE E Cat Pere Debt Total Balance Date Credit ernades AR F. Sharp Date Credit Total Balance Clt Amour Iced unt Date Credit Varsin E dit Pratt and Loss Beta Debit IEBER B Profit and Loss Mr. F Femades Wages Exp Account Date Credit Dare Debit Profit and Loss Politando