Question

The following balances were taken from the books of Bocket Traders on 30 April 2017 Bocket Traders Trial Balance On 30 April 2017 DEBIT CREDIT NS NS Capital 100 000 Drawings 10 000 Vehicles 110 000 Equipment 45 000 Bank 50 000 Debtors Control 10 000 30 000 Inventory 25 000 Creditors Control 290 000 Sales 133 000 Purchases 2 000 Stationary 3 000 Telephone expenses 15 000 Salaries and Wages 7 000 Water and Electricity 415 000 415 000 The following transaction took place during May 2017: Purchased stationary and paid by cheque, NS 2 000 02 May Purchased goods and paid by cheque, N$6 000 06 May Sold goods on credit, N$ 9 000 08 May Purchased goods on credit, N$14 000 and paid delivery costs of N$ 1 000 by cheque comacg 12 May Received NS 1 000 damaged goods sold on the 8th 14 May Sold goods for cash, N$ 6 000 15 May 16 May Returned N $ 3 000 damaged goods returned on credit Paid the Telephone account by cheque, N$ 2 000 The owner took goods for personal use, N$ 3 000 19 May 22 May 26 May Received N$ 5 000 from a debtor Paid water and Electricity account by cheque, N$ 3 000 Paid salaries by cheque, NS 11 000 27 May 30 May Paid N$ 13 000 in settlement of a creditor's account 31 May Inventory on hand on 31 May 2017 amounts to N$ 25 000 You are required to: for May 2017, balance off the accounts and extract a trial balance as at 31 May (20 marks) Record the above transactions in the general ledger (T accounts) of Bocket traders (Total 20 marks) 2017.

Answer 1

1.

Bank
Beginning Balance	50,000	May 2	2,000
May 15	6,000	May 6	6,000
May 26	5,000	May 12	1,000
		May 19	2,000
		May 27	3,000
		May 30	24,000
Ending balance	23,000

Debtors Control
Beginning Balance	10,000	May 14	1,000
May 8	9,000	May 26	5,000
Ending balance	13,000

Stationary
Beginning balance	2,000
May 2	2,000
Ending balance	4,000

Equipment
Beginning balance	45,000
Ending balance	45,000

Vehicles
Beginning balance	110,000
Ending balance	110,000

Creditors Control
May 16	3,000	Beginning balance	25,000
May 30	13,000	May 12	14,000
		Ending balance	23,000

Capital
		Beginning balance	100,000
		Ending balance	100,000

Drawings
Beginning balance	10,000
May 22	3,000
Ending balance	13,000

Sales
		Beginning balance	290,000
		May 8	9,000
		May 15	6,000
		Ending balance	305,000

Sales Returns & Allowances
May 14	1,000

Purchases
Beginning balance	133,000	May 22	3,000
May 6	6,000	May 31	25,000
May 12	14,000
May 31	30,000
Ending balance	155,000

Telephone Expense
Beginning balance	3,000
May 19	2,000
	5,000

Salaries and Wages
Beginning balance	15,000
May 30	11,000
	26,000

Water and Electricity
Beginning balance	7,000
May 27	3,000
	10,000

2.

Bocket Traders Trial Balance May 31, 2017
Account Titles	Debit	Credit
	N$	N$
Bank	23,000
Debtors Control	13,000
Inventory	25,000
Stationary	4,000
Equipment	45,000
Vehicles	110,000
Creditors Control		23,000
Capital		100,000
Drawings	13,000
Sales		305,000
Sales Returns and Allowances	1,000
Purchase	155,000
Purchase Returns		3,000
Delivery Cost	1,000
Salaries & Wages	26,000
Telephone	5,000
Water & Electricity	10,000
Totals	431,000	431,000