Double Entry System – Practice Question 04
This is a question from the grade 10 Business and Accounting Studies textbook.
Chapter 06 – Activity 04 – page, 76
The following cash book has been prepared by the accounting clerk of Sameera’s business by including transactions that have occurred during the month of January 20xx.
Required:
- Describe the transaction for each entry listed in the cash account in
chronological order. - Record the other entries relevant to the transactions listed in the above
cash account in the respective other accounts in the ledger of Sameera’s business.
Answers
1.
01.01 Owner invested Rs. 80 000 as capital to the business
06.01 Sold stock of goods for Rs. 60 000
07.01 Obtained a bank loan of Rs. 100 000
09.01 Purchased stock for Rs. 50 000
12.01 Purchased equipment for Rs. 80 000
15.01 Paid electricity chargers Rs. 10 000
18.01 Opened an investment of Rs. 40 000
22.01 Paid bank loan interest Rs. 10 000
25.01 Paid to a creditor Rs. 5 000
27.01 Received interest income Rs. 12 000
30.01 Received Rs. 4 000 from a debtor.
2.
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