FINANCIAL ACC 101

SOLUTION TO QUESTION 1.

Hey Guyz, Happy Thursday to you all. Wow, What a Beautiful Day, don’t you think. I Thank God for the Grace to see this day and to share it with you all, Beautiful in every right.

So hope you guyz were able to try out the questions I gave on yesterday? Any way today, we will provide the solution to the first Question. Here is the Question Below.

QUESTION 1:

You are required to enter up the following transactions for June 1999 in the books of Sharon Ltd. The accounts are then to be balanced off and a trial balance extracted as
at 30^th June 1999.

June 1- Sharon started business by depositing N 25, 000 in a bank a/c.

June 2- Bought motor van on credit from Bilikisu Enterprises N 3, 400.

June 3- Paid rent by cheque N 70.

June 4- Received Loan of N 300 in cash from Kosoko.

June 7- Bought Office equipment on credit from UTC Nig Ltd N 470.

June 10- Cash Sales N 17, 000.

June 11- Cash purchases N 5, 000.

June 13- Sold goods on credit to Tola N 150, Bella N 60.

June 15- Paid Bilikisu Enterprises by cheque N 3, 400.

June 16- Bought Goods for cash N 90.

June 17- The Proprietor took N 500 drawings in cash

June 19- Paid sundry expenses by cash N 50.

June 22- Bought another motor van paying by cheque immediately N 3, 000

June 23- Withdrew N 600 from the bank for business use.

June 30- Goods returned to us by Tola N 30, Bella N 10.

SOLUTION.

DR			CASH BOOK						CR
DATE	PARTICULARS	F	CASH	BANK	DATE	PARTICULARS	F	CASH	BANK
1-Jun	Capital			25,000	3-Jun	Rent			70
4-Jun	Kosoko		300		11-Jun	Purchases		5,000
10-Jun	Sales		17,000		15-Jun	Bilikisu			3,400
					16-Jun	Goods		90
					17-Jun	Proprietor		500
					19-Jun	Sundry Expenses		50
					22-Jun	Motor Van			3,000
					30-Jun	Drawings			600
						Bal c/d		11,660	17,930
			17,300	25,000				17,300	25,000
	Bal b/d		11,660	17,930

LEDGER ENTRIES:

DR		Capital A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	25,000	1-Jun	Capital	25,000
				Bal b/d	25,000
DR		Rent A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
3-Jun	Cheque	70		Balance c/d	70
	Bal b/d	70
DR		Loan A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	300	4-Jun	Kosoko	300
				Bal b/d	300
DR		Sales A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	17,000	10-Jun	Cash	17,000
				Bal b/d	17,000
DR		Purchases A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
11-Jun	Cash	5,000		Balance c/d	5,000
	Bal b/d	5,000
DR		Bilikisu A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
15-Jun	Cheque	3,400		Balance c/d	3,400
	Bal b/d	3,400

DR		Goods A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
16-Jun	Cash	90		Balance c/d	90
	Bal b/d	90
DR		Drawings A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
17-Jun	Proprietor	500		Balance c/d	1.1
23-Jun	Bank	600
		1,100
DR		Sundry Expenses A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
19-Jun	Cash	50		Balance c/d	50
	Bal b/d	50
DR		Motor Van A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
22-Jun	Cheque	3,000		Balance c/d	3,000
	Bal b/d	3,000

DAY BOOKS:

	Purchases Day Book
DATE	PARTICULARS	F	DETAILS	TOTAL
2-Jun	Bilikisu Enterprises		3,400
7-Jun	UTC Nig. Ltd		470
				3,870

DR		Sundries A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
7-Jun	Sundries	3,870		Balance c/d	3,870
	Bal b/d	3,870
DR		Bilikisu A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	3,400	2-Jun	Purchases	3,400
				Bal b/d	3,400
DR		UTC'S A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	470	7-Jun	Purchases	470
				Bal b/d	470

	Sales Day Book
DATE	PARTICULARS	F	DETAILS	TOTAL
13-Jun	Tola		150
	Bella		60
				210

DR		Sundries A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	210	13-Jun	Sundries	210
				Bal b/d	210
DR		Tola's A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
13-Jun	Sales	150		Balance c/d	150
	Bal b/d	150
DR		Bella's A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
13-Jun	Sales	60		Balance c/d	60
	Bal b/d	60

	Returns Inwards Day Book
DATE	PARTICULARS	F	DETAILS	TOTAL
30-Jun	Tola		30
	Bella		10
				40

DR		Sundries A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30-Jun	Sundries	40		Balance c/d	40
	Bal b/d	40
DR		Tola's A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	30	30-Jun	Returns	30
				Bal b/d	30

DR		Bella's A/C			CR
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
	Balance c/d	10	30-Jun	Returns	10
				Bal b/d	10

PARTICULARS	DR	CR
Cash	12,260
UTC		470
Capital		25,000
Bank	17,930
Rent	70
Purchases	5,090
Drawings	500
Sundry Expenses	50
Motor Van	6,400
Kosoko		300
Equipment	470
Tola	120
Bella	50
Returns Inwards	40
Sales		17,210
	42,980	42,980

This concludes our session for today. I know this is long and can be tedious but still you can do it. You can master this topic and be a guru at it with believe and a little more work.

Until we meet again remain ever Blessed and remember you are for SIGNS & WONDERS. God Bless You.