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Question 1
This is a Books of First Entry, Ledger and Trial Balance Question. Answer all parts of this question: GOLD Ltd, a plumbing business, had both credit and cash trans... show full transcript
Step 1
Answer
In the Purchases Book:
Date | Details | Invoice No. | Net (€) | VAT (€) | Total (€) |
---|---|---|---|---|---|
01/05/2016 | HAND Ltd | 6 | 60,000 | 13,800 | 73,800 |
20/05/2016 | HAND Ltd | 17 | 16,000 | 3,680 | 19,680 |
In the Sales Book:
Date | Details | Invoice No. | Net (€) | VAT (€) | Total (€) |
---|---|---|---|---|---|
12/05/2016 | SUM Ltd | 94 | 48,000 | 11,040 | 59,040 |
Step 2
Answer
In the Analysed Cash Book:
Receipts Side:
Date | Details | Bank (€) | Sales (€) | VAT (€) | Share Capital (€) |
---|---|---|---|---|---|
06/05/2016 | Share Capital | 110,000 | 110,000 | ||
10/05/2016 | Sales | 55,350 | 55,350 | 10,350 |
Payments Side:
Date | Details | Bank (€) | Purchases (€) | VAT (€) | Creditors (€) | Insurance (€) |
---|---|---|---|---|---|---|
16/05/2016 | HAND Ltd | 54,000 | 54,000 | |||
27/05/2016 | Purchases for resale | 8,300 | 8,300 | 1,909 | ||
31/05/2016 | Insurance | 12,000 | 12,000 |
Step 3
Answer
To balance the accounts on 31 May 2016:
Account | Dr (€) | Cr (€) |
---|---|---|
Share Capital | 110,000 | |
Sales | 93,000 | |
HAND Ltd | 39,480 | |
Bank | 52,610 | |
SUM Ltd | 59,040 | |
Purchases | 114,000 | |
VAT | 4,830 | |
Insurance | 12,000 | |
Total | 242,480 | 242,480 |
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