Question

64 You are to enter up the necessary accounts for the month of October from the following infor- mation relating to a small printing firm. Then balance-off the accounts and extract a trial balance as at 31 October 2017. 2017 1 Started in business with capital in cash of £3,600 and £8,400 in the bank. October 2 Bought goods on time from: A. Bell £1,220; J. Smith £1,030; T. Hand £348; L. Smart £690; S. Tong £1,084 4 Sold goods on time to: P. Hunt £680; A. Dexter £1,440; P. Spin £2,304. 6 Paid rent by cash £820. 9 P. Hunt paid us his account by cheque £680. 10 P. Spin paid us £2,000 by cheque. 12 We paid the following by cheque: T. Hand £348; A. Bell £1,220. 15 Paid carriage in cash £76. 18 Bought goods on time from J. Smith £582; L. Smart £1,880. 21 Sold goods on time to A. Dester £1,620. 31 Paid rent by cheque £980.

Answer 1

Date	Particulars	L.F	Dr.	Cr.
October 1	Cash a/c Dr. Bank A/c Dr. To Capital a/c		3600 8400	12000
October 2	Purchase a/c Dr. To Bell a/c To Smith a/c To Hand a/c To Smart a/c To Tong a/c		4372	1220 1030 348 690 1084
October 4	Hunt a/c Dr. Dexter a/c Dr. Spin a/c Dr. To Sales a/c		680 1440 2304	4424
October 6	Rent a/c Dr. To Cash a/c		820	820
October 9	Bank a/c Dr. To Hunt a/c		680	680
October 10	Bank a/cDr. To Spin a/c		2000	2000
October 12	Hand alc Dr. Bell a/c Dr. To bank a/c		348 1220	1568

October 15	Carriage a/cDr. To Cash a/c		76	76
October 18	Purchase alc Dr. To Smith a/c To Smart a/c		2462	582 1880

October 21	Dester a/cDr. To Sales a/c		1620	1620
October 31	Rent alc Dr. To bank a/c		980	980

Ledger accounts

Cash a/c

Particulars	Amount	Particulars	Amount
To capital a/c	3600	By rent By carriage By balance c/d	820 76 2704
	3600		3600

Bank a/c

Particulars	Amount	Particulars	Amount
To capital a/c To Hunt a/c To spin a/c	8400 680 2000	By hand a/c By bell a/c By Rent a/c By balance c/d	348 1220 980 8532
	11080		11080

Capital a/c

Particulars	Amount	Particulars	Amount
To balance c/d	12000	By bank a/c By cash a/c	8400 3600
	12000		12000

Purchase a/c

Particulars	Amount	Particulars	Amount
To Bell a/c To Smith a/c To Hand a/c To Smart a/c To Tong a/c To Smith a/c To Smart a/c	1220 1030 348 690 1084 582 1880	By balance c/d	6834
	6834		6834

Sales a/c

Particulars	Amount	Particulars	Amount
To balance c/d	6044	By Hunt By Dexter By spin By Dexter	680 1440 2304 1620
	6044		6044

Rent a/c  

Particulars	Amount	Particulars	Amount
To cash To bank	820 980	By balance c/d	1800
	1800		1800

Carriage a/c

Particulars	Amount	Particulars	Amount
To cash	76	By balance c/d	76
	76		76

Trial balance

	Debit	Credit
Capital Cash bank Sales Purchases Rent Carriage Smith Smart Tong Dexter Spin	2704 8532 6834 1800 76 3060 304	11080 6834 1612 2570 1084
Total	23310	23310