Question

4. The following transactions relate to Smith Electronics Ltd, which commenced business on 1 December 2017. Dec.1 Capital invested 3 Purchased equipment 5 Purchased fixtures 6 Purchased stock 9 Cash sales 12 Paid wages 15 Purchased stock 18 Purchased stationery 21 Cash Sales 24 Paid motor expenses 26 Purchased stock 28 Paid wages 29 Cash sales 31 Paid telephone bill 5,000 2,000 1,500 3,000 4,000 1,000 2,000 1,000 5,000 1,000 2,000 2,000 3,000 200 All purchases were paid for by cheque. All money received was lodged. Required: Record the above transactions in the ledger accounts of Smith Electronics Ltd. and prepare a closing trial balance. (30 marks)

Answer 1

A0e4 In the book of Smith Blectronics [td. Ledger Accounts Equipment Alc PTT TecT Bish sooo 2000. Byl • Capital Alc Dec. 5000 l 1. Dec . 131 To Balance </ IS003 Fixtures 40 Wages Ak O . s To Dyke (50) 31078nce 100 1. 18. To Bagh y By 14 3000 Isha 00 300 Sales Alc Purchases Ale 1 Dec. 1 zbalague Dev 4000 3000 7000 31 TBalance | 20 Oes 1. To bank 45. To bank 26 Т• взуп 2009 1 0, Bagh 21 Eg Eynk 64914 soos 3000 2.000 120 1000 Tooo stato _Alc Des Motor Expenser Als Dec 31. Pyyhe 100 Op Des h 124. To byghe 99 17.ToBalk 1000 317 09794 100 1900 10 Telephone Bill Al Dec 34. 97 Balance N Dec 3-00 31. | To aggh 2.00 Bank Ak Dec SOOO 2030 To capital | To sales To sales 29. | To sgles 4900 5000 3000 97 Equipment y Fixtwer By Purchases Woges ay purchares by stationery By Motor Expenses в fth ге! By Wages By Telephone Bill ез 914де і co 100 2004 2000 1900 7000 FOOD

Amt. $) L Closing Trigl Balance 95 on December 31, 2017 Amt.() Credit Balance 2000 | Capity I 1500 Sales 7000 S000 2000 12000 3000 . Debit Balance Equipment Fixtures Purchases Wages Cash Motov Expenses Stationery Telephone Bill 1300 1000 1000 200 17000 17000