Question

Mr Stephens, trading as Clean View, operates a window-cleaning business with the financial year ending on 28 February. The following balances were brought forward on 1 February 2007: Advertising expense account Bank balance Capital account Cleaning liquid (stock account) Creditors Debtors Drawings Equipment Fees received Motor vehicles Petrol expense account Rags (stock account) Salaries and wages expense account 200 13 500 27 400 9 500 1 500 4 000 21 000 2 700 69 000 15 000 2 900 1 800 27 300

Answer 1

Journal Entries
Date (Feb.)	Accounts	Dr.	Cr.
2	Bank	R3,100
	Debtors		R3,100
	(Being received from debtors.)
3	Equipment	R120
	Creditors		R120
	(Being purchased ladder on account.)
6	Debtors	R2,300
	Fees Received		R2,300
	(being rendered service on account.)
10	Rags (Stock)	R80
	Bank		R80
	(Being purchased Rags by cash.)
15	Cash	R1,700
	Fees Received		R1,700
	(being rendered service for cash.)
25	Salaries and wages	R2,300
	Advertising expense	R130
	Repairs expense	R450
	Cleaning Liquid (Stock)	R800
	Bank		R3,680
	(Being expenses and purchase by cash.)
28	Salaries and wages	R250
	Petrol Expense	R400
	Creditors	R500
	Drawings	R1,000
	Bank		R2,150
	(being all payments and drawings by cash.)
28	Debtors	R1,900
	Fees Received		R1,900
	(being rendered service on account.)

Trial Balance
Accounts	Debit	Credit
Advertising Expense Account	R330
Bank Balance	R12,390
Capital Account		R27,400
Cleaning Liquid (Stock Account)	R10,300
Creditors		R1,120
Debtors	R5,100
Drawings	R22,000
Equipment	R2,820
Fees Received		R74,900
Motor Vehicles	R15,000
Petrol Expense Account	R3,300
Rags (Stock Account)	R1,880
Salaries and Wages Account	R29,850
Repairs Expense	R450
Total	R1,03,420	R1,03,420