You are to enter up the necessary accounts for the month of May 2007 from the following details, and then balance off the accounts and extract a trial balance as at 31 May 2007.

Question

You are to enter up the necessary accounts for the month of May 2007 from the following details, and then balance off the accounts and extract a trial balance as at 31 May 2007. 

2007 

May 

 1 Started firm with capital in cash £500 and cash at bank £9500. 

 4 Bought goods on credit from the following persons: D. Darma £410 and K.     

   Gibson £ 970. 

 5 Paid rent by cash £380 

 9 Sold goods on credit to : C. Carls £780, B. Booth £670. 

10 B. Booth paid us by cheque £600. 

12 Paid carriage by cash £50 

16 Received commission by cheque £340 

20 Paid D. Darma by cash £350. 

23 Received bank loan £2000. 

26 Cash sales £560 

27 Bought a motor van paying by cheque £2500. 

30 Proprietor brings a further cash £300 into the business .     

Answer 1

The account tittles may be different for American business vs English, but here is what I calculated.

Cash      10520   

Supplies              1380      

Equipment          2500      

AR-C. Carls          780        

AR-B. Booth        70          

Loans Payable                  2000

AP-D Darma                       60

AP-K. Gibson                     970

Capital                  10300

Sales                      2350

Carriage Expense   50          

Rent Expense    380        

Totals    15680   15680