12-16-2010, 03:22 PM
Hey,
Would like some help on where I have gone wrong?
"It is 1st of August 2009, BC has decided to start up a small business selling chickens. He has an old motorbike which he has valued at 1,000 which he will put into the business together with 5,000 of his own money which he will put into a new business bank account"
<b>Actions - Open a Bank Account and debit 6000, credit captial account 6000</b>
1st August - Needed more money so asked a friend, GS, for 10,000 and banked it.
<b>Actions - Asset of bank has increased so debit bank 10,000 and credit GS 10,000</b>
3rd August - Purchesd 4 chickens for resale for 13,000 and paying by cheque
<b>Actions - Asset of purchases have increased so, open purchases account and debit purchases account 13,000 and credit bank 13,000 </b>
4th August - Cashed a cheque of 250 to give the business petty cash for future use.
<b>Actions - Asset of bank has increased, debit bank 250, credit cash 250</b>
5th August - Hired the cafe for 200 cash and displayed posts bought for 250 cash
<b>Actions - Open cafe account, asset of cafe account has increased, debt cafe account 250 and credit cash account 250 </b>
10th August - repaired car, cost 550 paying by cheque
<b>Actions - Open a repairs account, asset of bank has decreased so credit bank account 500 and debit repairs account 550</b>
12th August - Sold 3 chickens for 15000 to a Food Store by cheque
<b>Actions - Open a sales account, asset of chickens have decreased so credit sales account 8000 debit food store 8000.</b>
17th August - Bought 4 Chickens for 2000 each from GCR on credit.
<b>Actions - Asset of chickens have increased, debit purchases account 8000, credit GCR account 8000</b>
20th August - Paid 500 rent by cheque
<b>Actions - Asset of bank has decreased, credit bank account 500, debit rent account 500</b>
24th August - Cashed a cheque for 250 and bought petrol for 20 cash
<b>Actions - Asset of bank has increased, debit bank 250, credit cash 250 - Open up a petrol account, asset of cash has decreased, credit cash account 20, debit petrol account 20</b>
29th August - Sold 2 chickens for cash 7500. Repaid 7500 of GS loan in cash.
<b>Actions - Asset of cash has increased, debit cash account 15000 and credit sales account 15000. Asset of cash decreased, credit cash account 7500 debit GS account 7500</b>
30th August - Withdrew 100 cash for himself and banked remaining cash.
<b>Actions - Asset of cash has decreased, credit cash account 100, debit drawings account 100. Asset of bank has increased, debit bank account 7400, credit capital account 7400</b>
30th August - Returned one chicken to CGR, since faulty
<b>Actions - Asset of chickens have decerased, credit return outwards account 2000, debit GCR 2000</b>
30th August - Withdrew 500 drawings for the month by cheque.
<b>Actions - Asset of bank has decreased, credit bank 500, debit drawings 500</b>
________________________________________________________________________________________________________________________________________
That's the senario, here's the trial balance
DEBITS
Bank - 23,900
Purchases - 21,000
Repairs - 550
Cash - 22,520
Rent - 500
Drawings - 600
Food Store - 8000
Cafe - 250
<b>
77,320</b>
CREDITS
GCR - 8,000
Captial - 13,400
Sales - 23,000
Return Outwards - 2000
GS - 17,500
Petrol - 20
<b>
63,920</b>
Where have I misplaced 13,400?
Would like some help on where I have gone wrong?
"It is 1st of August 2009, BC has decided to start up a small business selling chickens. He has an old motorbike which he has valued at 1,000 which he will put into the business together with 5,000 of his own money which he will put into a new business bank account"
<b>Actions - Open a Bank Account and debit 6000, credit captial account 6000</b>
1st August - Needed more money so asked a friend, GS, for 10,000 and banked it.
<b>Actions - Asset of bank has increased so debit bank 10,000 and credit GS 10,000</b>
3rd August - Purchesd 4 chickens for resale for 13,000 and paying by cheque
<b>Actions - Asset of purchases have increased so, open purchases account and debit purchases account 13,000 and credit bank 13,000 </b>
4th August - Cashed a cheque of 250 to give the business petty cash for future use.
<b>Actions - Asset of bank has increased, debit bank 250, credit cash 250</b>
5th August - Hired the cafe for 200 cash and displayed posts bought for 250 cash
<b>Actions - Open cafe account, asset of cafe account has increased, debt cafe account 250 and credit cash account 250 </b>
10th August - repaired car, cost 550 paying by cheque
<b>Actions - Open a repairs account, asset of bank has decreased so credit bank account 500 and debit repairs account 550</b>
12th August - Sold 3 chickens for 15000 to a Food Store by cheque
<b>Actions - Open a sales account, asset of chickens have decreased so credit sales account 8000 debit food store 8000.</b>
17th August - Bought 4 Chickens for 2000 each from GCR on credit.
<b>Actions - Asset of chickens have increased, debit purchases account 8000, credit GCR account 8000</b>
20th August - Paid 500 rent by cheque
<b>Actions - Asset of bank has decreased, credit bank account 500, debit rent account 500</b>
24th August - Cashed a cheque for 250 and bought petrol for 20 cash
<b>Actions - Asset of bank has increased, debit bank 250, credit cash 250 - Open up a petrol account, asset of cash has decreased, credit cash account 20, debit petrol account 20</b>
29th August - Sold 2 chickens for cash 7500. Repaid 7500 of GS loan in cash.
<b>Actions - Asset of cash has increased, debit cash account 15000 and credit sales account 15000. Asset of cash decreased, credit cash account 7500 debit GS account 7500</b>
30th August - Withdrew 100 cash for himself and banked remaining cash.
<b>Actions - Asset of cash has decreased, credit cash account 100, debit drawings account 100. Asset of bank has increased, debit bank account 7400, credit capital account 7400</b>
30th August - Returned one chicken to CGR, since faulty
<b>Actions - Asset of chickens have decerased, credit return outwards account 2000, debit GCR 2000</b>
30th August - Withdrew 500 drawings for the month by cheque.
<b>Actions - Asset of bank has decreased, credit bank 500, debit drawings 500</b>
________________________________________________________________________________________________________________________________________
That's the senario, here's the trial balance
DEBITS
Bank - 23,900
Purchases - 21,000
Repairs - 550
Cash - 22,520
Rent - 500
Drawings - 600
Food Store - 8000
Cafe - 250
<b>
77,320</b>
CREDITS
GCR - 8,000
Captial - 13,400
Sales - 23,000
Return Outwards - 2000
GS - 17,500
Petrol - 20
<b>
63,920</b>
Where have I misplaced 13,400?
