Question

Question 1:

Draft a balance sheet as at 31 March 2006 for the following:

2006

March 1 Started business with $800 in the bank

March 2 Bought goods on credit $156

5 Cash sales $87

6 Sold goods on credit to H Elliot $35

9 Bought goods for cash $46

10 Bought goods on credit from MHyatt $57

15 Bought shop fixtures on credit from Betta Bhd $50

17 Paid MHyatt by cheque $84

18 We returned goods to T Braham $20

20 Paid Betta Bhd a cheque for $50

Question 2:

The following transactions for M Booker were completed during the month:

May 1 Started business with $13,000 in the bank and $5000 cash

2 Paid rent by cheque $350

Bought office equipment $2,500, paid by cheque

3 Bought goods on credit from: W Piper $2,500, L Price $1,900.

4 Bought goods for cash $120

7 Sold goods on credit to A Flowers $820

8 Returned goods to W Piper $200

11 Paid $600 cash into the bank

13 Paid by cheque: W Piper $1500, L Price $1500

15 Paid wages in cash $50

17 Sold goods for cash $600

18 A Flowers returned goods valued at $120 and paid $700 by internet transfer.

Answer 1

Solution 1:

Balance sheet as at 31 March 2006 for the following is as prepared below:

Balance Sheet
As at Mar 31, 2006
Particulars	Amount ($)	Amount ($)
ASSETS
Current Assets:
Cash	707
Inventory	239
Account Receivable	35
Total Current Assets		981
Fixtures	50	50
Total Assets		1,031
LIABILITIES AND STOCKHOLDERS EQUITY
Liabilities :
Current Liabilities
Accounts Payable	109
Total Current Liabilities		109
Total Stockholders' Equity
Capital (800+122)	922	922
Total Stockholders' Equity		922
Total Liabilities and stockholders’ equity		1,031

Working:

	Cash	Inventory	Fixtures	Account Receivable	Accounts Payable	Capital	Sales Revenue
March 1 Started business with $800 in the bank	800					800
March 2 Bought goods on credit $156		156			156
5 Cash sales $87	87						87
6 Sold goods on credit to H Elliot $35				35			35
9 Bought goods for cash $46	-46	46
10 Bought goods on credit from MHyatt $57		57			57
15 Bought shop fixtures on credit from Betta Bhd $50			50		50
17 Paid MHyatt by cheque $84	-84				-84
18 We returned goods to T Braham $20		-20			-20
20 Paid Betta Bhd a cheque for $50	-50				-50
Totals	707	239	50	35	109	800	122