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    September 9th, 2024 - Practice Work

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    sahil.rambarose001

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    September 9th, 2024 - Practice Work

    Uploaded by

    sahil.rambarose001
    14 views4 pages

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    Download as docx, pdf, or txt
    14 views4 pages

    September 9th, 2024 - Practice Work

    Uploaded by

    sahil.rambarose001

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Accounting Unit 1 – September 9th, 2024

    Anushka began a sole trade business on 1 January 20X1. During the first
    month of trading, the following transactions took place.
    1. She started the business with $5,000 of cash.
    2. She took out a loan from the bank of $10,000.
    3. She purchased a van for $12,000 cash.
    4. She purchased 100 units of inventory on credit at a total of $2,500 (i.e.
    $25 per unit)
    5. She sold 10 units of inventory to a customer on credit for a total of
    $400 (i.e. $40 per unit.
    6. She paid interest on the loan of $60.
    7. She paid $250 of the loan.
    8. She took $10 from the business bank account to cover a personal
    expense.

    Transactio Liabilities Expenses


    Assets (A) Income (I) Capital (C)
    n (L) (E)
    1. Started +$5,000
    +$5,000
    with $5,000 Owner's
    Cash
    cash Equity
    2. Took out a +$10,000
    +$10,000
    $10,000 Loan
    Cash
    loan Payable
    3. Purchased
    -$12,000
    van for
    Cash
    $12,000
    4. Bought +$2,500 +$2,500
    100 units of Inventory Accounts
    inventory on Payable
    credit
    Transactio Liabilities Expenses
    Assets (A) Income (I) Capital (C)
    n (L) (E)
    ($2,500)
    5. Sold 10
    units of +$400
    +$400 Sales -$250
    inventory on Accounts
    Revenue Inventory
    credit Receivable
    ($400)
    6. Paid
    +$60
    interest on
    -$60 Cash Interest
    the loan
    Expense
    ($60)
    7. Paid $250 -$250 Loan
    -$250 Cash
    of the loan Payable
    8. Took $10
    -$10
    for personal
    Drawings
    expenses
    Transaction Accounts (T-Accounts)

    Cash Account Debit ($) Credit ($)


    Jan1 - Capital 5,000
    Jan 1 - Loan 10,000
    Jan 1 - Van purchase 12,000
    Jan 1 - Interest 60
    Jan 1 - Loan repayment 250
    Jan 1 - Drawings 10
    Total 15,000 12,320
    Jan 31 - Bal c/d 15,000
    Feb 1 - Bal b/d 2,680

    Capital Account Debit ($) Credit ($)


    Jan 1 - Cash 5,000
    Total 0 5,000
    Jan 31 - Bal c/d 5,000
    Feb 1 - Bal b/d 5,000

    Bank Loan Debit ($) Credit ($)


    Jan 1 - Cash 10,000
    Jan 1 - Cash 250
    Total 10,000 250
    Jan 31 – Bal c/d 9,750
    Feb 1 - Bal b/d 9,750

    Van Account Debit ($) Credit ($)


    Van Purchases 12,000
    Total 12,000 0
    Jan 31 -Bal c/d 12,000
    Feb 1 - Bal b/d 12,000

    Inventory Account Debit ($) Credit ($)


    Purchases 2,500
    COGS 250
    Total 2,500 250
    Jan 31 – Bal c/d 2,500
    Feb 1 – Bal b/d 2,250

    Account Payable Debit ($) Credit ($)


    Purchases 2,500
    Jan 31 – Bal c/d 2,500
    Feb 1 – Bal b/d 2,500

    Loan Interest Debit ($) Credit ($)


    Account
    Interest paid 60
    Jan 31 – Bal c/d 60
    Feb 1 – Bal b/d 60

    Customer Account Debit ($) Credit ($)


    Sales 400
    Jan 31 – Bal c/d 400
    Feb 1 – Bal b/d 400

    Drawings Account Debit ($) Credit ($)


    Drawings 10
    Jan 31 – Bal c/d 10
    Feb 1 – Bal b/d 10

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