Question

a Following
are the transactions for the period April 20x1 to
March 20x2 in the books of michael Traders.
(i) Journalize the above transactions and post them in ledgers
a Trial Balance.
(ii) Prepare Trading No a profit & loss Ale and balonce sheet.
and prepare
1 - Apr
Michael started business with cash 60,00poo cash
at Bank of America 7000,0. furniture 200000 .
1 - Apr
Purchased plant & Machinery worth 250,000 by cheque
25- Apr
Purchased goods from ABC Ltd worth 809000 @10%
trade discount.​

Answer 1

Answer:

1 .04.01 - cash acc ..............Dr 6000000

To capital acc 6000000

1.04.01 - plant and machinery .....Dr. 250000

To bank. 250000

( being plant and machinery purchased by cheque).

25.04.01 - purchase acc .....Dr. 809000

To discount. 80900

To ABC LTD. 728100

( being good purchased at trade discount)