Answer to Question #283615 in Accounting for Mala

Question

Ifesinachi started business on 1/1/99 with the following:

 

Building                N 100,000

Stock of goods N 40,000

Motor van N 50,000

Cash N 10,000

During the month, he undertook the following transaction

5/1/99 Sold goods for cash   N 5, 000

10/1/99 Sold goods on credit N 20, 000

12/1/99 Bought goods on credit N 10, 000

15/1/99 Cash sales banked N 15, 000

18/1/99 Paid cash for office stationery N 2, 000

20/1/99 Received cash from debtors for goods N 5, 000

22/1/99 Paid cash for office expenses N 1, 000

23/1/99 Paid salaries by cheque N 4, 000

24/1/99 Sold goods for cash N 7, 000

25/1/99 Sold goods on credit N 5, 000

26/1/99 Bought goods on credit N 3, 000

27/1/99 Bought goods for cash N 2, 500

28/1/99 Withdrew money from bank for owner’s use N 1, 500

29/1/99 Office cash banked N 5, 000

31/1/99 Paid electricity by cheque N1, 500

Required to record the above transactions in the appropriate books of original entry and post them to the ledger.

Answer 1

Solution:

The journal entries have been entered as below: