FA – L1 – Q12 – Double entry bookkeeping

Record Leah's March 20X9 transactions in main ledger T accounts and prepare a trial balance as at 31 March 20X9.

Question

Enter the following transactions in the main ledger accounts of Leah, and extract a trial balance as at 31 March 20X9.
Assume that all receipts and payments are by cheque unless told otherwise.

March 20X9

Date	Transaction
1	Started business with GH₵80,000 in the bank
2	Bought goods on credit from: K&H Supplies GH₵7,600; Hatton Traders GH₵2,700; Tobias Traders GH₵5,600
5	Cash sales GH₵8,700. The cash was kept in a safe in Leah’s office.
6	Paid wages GH₵1,400 by cheque.
7	Sold goods on credit to: Elliott Enterprises GH₵3,500; L. Lang GH₵4,200; Carter Leisure GH₵7,200
9	Bought goods for cash GH₵4,600 using cash from Leah’s safe.
10	Bought goods on credit from: K&H Supplies GH₵5,700; Tobias Traders GH₵9,800
12	Paid wages GH₵1,400 by cheque.
13	Sold goods on credit to: L. Lang GH₵3,200; Carter Leisure GH₵2,300
15	Bought shop fixtures on credit from Betta Fittings GH₵5,000
17	Paid K&H Supplies GH₵8,400
18	Goods returned to Tobias Traders GH₵2,000
21	Paid Betta Fittings GH₵5,000
24	Payment received from Carter Leisure GH₵9,500
27	Goods returned to K&H Supplies GH₵2,400
30	Royal Bank provides a loan of GH₵6,000
31	Bought a motor van, paying by cheque GH₵40,000

Answer

Main Ledger Accounts

Capital

Date	Details	GH₵	Date	Details	GH₵
31 Mar	Balance c/d	80,000	1 Mar	Bank	80,000
Total		80,000	Total		80,000
			1 Apr	Balance b/d	80,000

Cash at Bank

Date	Details	GH₵	Date	Details	GH₵
1 Mar	Capital	80,000	6 Mar	Wages	1,400
24 Mar	Carter Leisure	9,500	12 Mar	Wages	1,400
30 Mar	Loan	6,000	17 Mar	K&H Supplies	8,400
			21 Mar	Betta Fittings	5,000
			31 Mar	Motor Van	40,000
			31 Mar	Balance c/d	39,300
Total		95,500	Total		95,500
1 Apr	Balance b/d	39,300

Cash in Hand

Date	Details	GH₵	Date	Details	GH₵
5 Mar	Sales	8,700	9 Mar	Purchases	4,600
			31 Mar	Balance c/d	4,100
Total		8,700	Total		8,700
1 Apr	Balance b/d	4,100

Purchases

Date	Details	GH₵	Date	Details	GH₵
2 Mar	K&H Supplies	7,600	31 Mar	Balance c/d	25,000
2 Mar	Hatton Traders	2,700
2 Mar	Tobias Traders	5,600
9 Mar	Cash in Hand	4,600
10 Mar	K&H Supplies	5,700
10 Mar	Tobias Traders	9,800
Total		35,000	Total		25,000
1 Apr	Balance b/d	25,000

Sales

Date	Details	GH₵	Date	Details	GH₵
31 Mar	Balance c/d	25,900	5 Mar	Cash in Hand	8,700
			7 Mar	Elliott Enterprises	3,500
			7 Mar	L. Lang	4,200
			7 Mar	Carter Leisure	7,200
			13 Mar	L. Lang	3,200
			13 Mar	Carter Leisure	2,300
Total		25,900	Total		25,900
			1 Apr	Balance b/d	25,900

Wages

Date	Details	GH₵	Date	Details	GH₵
6 Mar	Bank	1,400	31 Mar	Balance c/d	2,800
12 Mar	Bank	1,400
Total		2,800	Total		2,800
1 Apr	Balance b/d	2,800

Shop Fixtures

Date	Details	GH₵	Date	Details	GH₵
15 Mar	Betta Fittings	5,000	31 Mar	Balance c/d	5,000
Total		5,000	Total		5,000
1 Apr	Balance b/d	5,000

Motor Van

Date	Details	GH₵	Date	Details	GH₵
31 Mar	Bank	40,000	31 Mar	Balance c/d	40,000
Total		40,000	Total		40,000
1 Apr	Balance b/d	40,000

Loan

Date	Details	GH₵	Date	Details	GH₵
31 Mar	Balance c/d	6,000	30 Mar	Bank	6,000
Total		6,000	Total		6,000
			1 Apr	Balance b/d	6,000

Payables – K&H Supplies

Date	Details	GH₵	Date	Details	GH₵
17 Mar	Bank	8,400	2 Mar	Purchases	7,600
27 Mar	Purchase Returns	2,400	10 Mar	Purchases	5,700
31 Mar	Balance c/d	2,500
Total		13,300	Total		13,300
			1 Apr	Balance b/d	2,500

Payables – Hatton Traders

Date	Details	GH₵	Date	Details	GH₵
31 Mar	Balance c/d	2,700	2 Mar	Purchases	2,700
Total		2,700	Total		2,700
			1 Apr	Balance b/d	2,700

Payables – Tobias Traders

Date	Details	GH₵	Date	Details	GH₵
18 Mar	Purchase Returns	2,000	2 Mar	Purchases	5,600
31 Mar	Balance c/d	13,400	10 Mar	Purchases	9,800
Total		15,400	Total		15,400
			1 Apr	Balance b/d	13,400

Payables – Betta Fittings

Date	Details	GH₵	Date	Details	GH₵
21 Mar	Bank	5,000	15 Mar	Shop Fixtures	5,000
Total		5,000	Total		5,000

Receivables – Elliott Enterprises

Date	Details	GH₵	Date	Details	GH₵
7 Mar	Sales	3,500	31 Mar	Balance c/d	3,500
Total		3,500	Total		3,500
1 Apr	Balance b/d	3,500

Receivables – L. Lang

Date	Details	GH₵	Date	Details	GH₵
7 Mar	Sales	4,200	31 Mar	Balance c/d	7,400
13 Mar	Sales	3,200
Total		7,400	Total		7,400
1 Apr	Balance b/d	7,400

Receivables – Carter Leisure

Date	Details	GH₵	Date	Details	GH₵
7 Mar	Sales	7,200	24 Mar	Bank	9,500
13 Mar	Sales	2,300	31 Mar	Balance c/d	0
Total		9,500	Total		9,500

Purchase Returns

Date	Details	GH₵	Date	Details	GH₵
31 Mar	Balance c/d	4,400	18 Mar	Tobias Traders	2,000
			27 Mar	K&H Supplies	2,400
Total		4,400	Total		4,400
			1 Apr	Balance b/d	4,400

Trial Balance as at 31 March 20X9

Account	Debit GH₵	Credit GH₵
Capital		80,000
Cash at Bank	39,300
Cash in Hand	4,100
Purchases	25,000
Sales		25,900
Wages	2,800
Shop Fixtures	5,000
Motor Van	40,000
Loan		6,000
Payables – K&H Supplies		2,500
Payables – Hatton Traders		2,700
Payables – Tobias Traders		13,400
Receivables – Elliott Enterprises	3,500
Receivables – L. Lang	7,400
Purchase Returns		4,400
Total	127,100	134,900

Tags: Capital, Double Entry, Inventory, Ledger accounts, Non-current Assets, Payables, Purchases, Receivables, Sales, T accounts, Trial Balance
Level: Level 1

Topic: Double entry bookkeeping

Uploader: Samuel Duah