Question

The following are the transactions of BENI’s business during her first month of trading. Record each transaction in t-accounts.

(a) BENI starts a business and pays in $5,000 as capital

(b) The business buys a car for $1,000 cash

(c) They buy goods for resale for $500 cash

(d) They buy more goods for resale for $600 on credit from Mr Stone

(e) They pay rent of $200 cash

(f) They sell half the goods for $800 cash

(g) They sell the remaining goods on credit for $900 to Mrs Kerl

(h) They pay $400 cash on account of the amount owing to Mr Stone

(i) They receive $500 from Mrs Kerl

(j) Kristine withdraws $100 cash from the business

Answer 1

SNO.	PARTICULARS	DEBIT	CREDIT
1.	CASH A/C	5000
	TO CAPITAL A/C		5000
2	FIXED ASSET (CAR)	1000
	TO CASH A/C		1000
3	PURCHASE A/C	500
	TO CASH		500
4	PURCHASE A/C	600
	TO MR. STONE		600
5	RENT A/C	200
	TO CASH		200
6	CASH A/C	800
	TO SALE		800
7	MRS. KERL	900
	TO SALE		900
8	MR. STONE	400
	TO CASH		400
9	CASH A/C	500
	TO MRS. KERL		500
10	CAPITAL A/C	100
	TO CASH		100