WORKED EXAMPLE
The following transactions took place in the business of Jack Sparrow during the month of January 2019.
Account to debit | Account to credit | |||
Jan | 1 | Started business with cash $ 13 500 | ||
3 | Purchased goods by cash $ 4 400 | |||
5 | Sold goods for cash $ 5 300 | |||
7 | Purchased equipment by cash $ 800 | |||
10 | Paid wages by cash $ 1 500 | |||
13 | Purchased goods by cash $ 3 500 | |||
18 | Paid insurance by cash $ 600 | |||
25 | Sold goods for cash $ 3 700 | |||
29 | Received commission by cash $ 700 | |||
31 | Withdrew cash for own use $ 600 |
DR In the ledger of Jack Sparrow CR
Date | Details | Amount | Date | Details | Amount |
CASH ACCOUNT | |||||
CAPITAL ACCOUNT | |||||
PURCAHSES ACCOUNT | |||||
REVENUE(SALES) ACCOUNT | |||||
EQUIPMENT ACCOUNT | |||||
WAGES ACCOUNT | |||||
INSURANCE ACCOUNT | |||||
COMMISSION RECEIVABLE ACCOUNT | |||||
DRAWINGS ACCOUNT | |||||
Trial Balance as at 31st January 2019 | ||
Title of Account | DR | CR |
Cash | ||
Capital | ||
Purchases | ||
Revenue(Sales) | ||
Equipment | ||
Wages | ||
Insurance | ||
Commission Received | ||
Drawings | ||
Q1. The following transactions took place during the month of January 2012. | ||
Jan | 1 3 7 10 15 18 20 24 27 31 | Started business with cash $ 11 000. Purchased goods for cash $ 2 300 Sold goods for cash $ 3 500 Purchased motor van by cash $ 2 400. Paid wages by cash $ 2 50 Paid electricity by cash $ 400 Received commission by cash $ 200 Withdrew cash for personal use $ 300 Purchased goods by cash $ 2 800 Sold goods for cash $ 3 500 |
