Mr. John Murphy commenced business as a sole trader by opening a coffee shop on...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Mr. John Murphy commenced business as a sole trader by opening a coffee shop on the 1st December 2017. He commenced the business by investing 25,000 and lodging it to the business bank account. He also registered for VAT with the revenue commissioners. The following transactions occurred during the month of December 2017:
(i) 2 nd December bought a coffee machine for the business costing 5,000 plus VAT of 20%, paying by cheque.
(ii) 3 rd December bough goods on credit from ABC Catering for 2,150 plus VAT of 20%.
(iii) 5 th December paid rent of 1,500 for the month of December by cheque.
(iv) 12th December paid ABC Catering Ltd 2,000 on their account by cheque.
(v) 28th December it was noted that the total cash sales lodged to the bank for the month was 5,500 including VAT of 10%.
(vi) 30th December staff were paid wages for the month by bank transfer totalling 1,800.
Requirement: (a) Record the above transactions for the month of December and balance the accounts at the end of the month.
(b) Extract a Trial Balance as at 31st December 2017.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
