Chpt 3 Elements of Accounting Self Practice

7/24/2019 Chpt 3 Elements of Accounting Self Practice

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CHAPTER 3 ELEMENTS OF ACCOUNTING

1 Junweis Trading Company commenced business on 1St July 2015 with thefollowing capital:otor !ehicle "15#000

Cash at $an% "10#000Cash in hand "5#000

The following transactions too% place in the month of July 2015:

July2

&urchased goods worth "'#(00 from )elly on credit*

+ Junwei withdrew cash "200 to pay for wifes facial session*

( Cash Sales of "+#,00* The goods cost "2#500

10 -ecei!ed commission by che.ue "1#20011 /ithdraw money "2#000 from ban% to put into office use*

15 &urchased more goods from )elly worth "150 and paid by cash*

1, &aid ffices internet bills by che.ue "1,0

22 Sold "00 worth of goods which cost "+00 to Joel# of which half of thegoods were paid by cash and the rest on credit*

2 Joel returned defecti!e goods worth "100 to Junwei* The original costwas "50

2 &aid salaries "2#000 by che.ue*

2, &urchased more goods from )elly "2#000 on credit*

'1 &aid electricity bills "200 by cash*

REQUIRED

&repare the 3ournal entries for the month of July 2015*


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2 The following transactions appear in the boo%s of 4!an# a music retailer*

Item Transactin E!!ect n

Assets Lia"i#ities E$%it&

i 4!an contributed "20 000 cashto the business

Cash inand620 000

Capital620 000

ii 4!an paid amount owing of "500 to Simpson in cash

iii $ought a printer on credit for "'50 from Copy 7td

i! 4!an brought in his ownboo%shelf costing "1 200 foroffice use

! Too% a loan from 7eong 8inanceto purchase a machine of ",000

!i &aid 9anny the supplier "' 000for amount owing using apersonal che.ue

!ii -epaid "10 000 loan from ban%using a che.ue

REQUIRED

Copy the table in the multicolumn paper* ;ou are not re.uired to write thetransactions*

/rite down the effects of the transactions using the accounting e.uation* hasbeen done as an e?ample for you*

'Tta#( 12)


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3 @ahirah deals in fashion accessories* $elow are some of the transactions thatoccurred during the month* /rite down the accounts and the amount to debit orcredit gi!en the transactions* The first one has been done as an e?ample*

Transactin Acc%nt t *e"it Acc%nt t cre*ita Too% goods costing "50 for her

personal use*9rawings "50 -ecord the abo!e transactions using the doubleentry system*

=b> State the accounting concept that Jeremy applied when recording thetransaction on 22 April 2015* *


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- a!is 7in had the following transactions for the month of arch 2011*

1$ought goods of "' 000 on credit*2Sold goods costing "2 500 for "' (00 on credit*'-epaid ban% loan of "2 000 by che.ue*

+"00 goods were returned by the customers* These goods cost "'50*5&aid insurance of ",00 by cash*/ithdrew "1 000 from ban% for office use*


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Q1 SOLUTION

Date Partic%#ars Dr Cr 2011 " "July

1otor !ehicleCash at $an%Cash in and

Capital

15 00010 0005 000

'0 000

2


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Q2 SOLUTION

Item E!!ect n

Assets Lia"i#ities E$%it&

iiCash in hand500

Trade payable:Simpson500

iiiffice 4.uipment6'50

ther payable: Copy7td6'50

i!8urniture61200

Capital61200

!achinery6,000

7oan from 7eong8inance6,000

!iTrade payable: 9anny'000

Capital6'000

!iiCash at $an%10000

7oan from ban%10000

Q3 SOLUTION

Acc%nt t *e"it Acc%nt t cre*it

b ffice 4.uipment "2 100 Capital "2 100

c


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Q, SOLUTIONGenera# %rna#

Date Partic%#ars Dr Cr 2015 " "

April 1 Cash in $an% 15 000Capital 15 000

Cash in and '00Capital '00

ffice 4.uipment + 250Capital + 250

2 Cash in $an% 12 0007oan from $an% 12 000

+


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Cost of sales2 500

=iii> $an% loan 2 000 Cash at ban% 2 000 Eo effect=i!> Sales returns 00

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Chpt 3 Elements of Accounting Self Practice