Tutorial 1c
Kate Convey
Kate Convey has set up a business and the following transactions have
occurred:
March 1st
March 2nd
March 4th
March 5th
March 6th
March 9th
March 15th
March 17th
March 18th
March 21st
March 24th
March 25th
March 26th
March 28th
March 30th
Started her business with €50,000 capital lodged to bank
Purchased €2,000 of stock paying by cheque
Paid Insurance for the current month €125
Paid rent for premises for March using cheque, €1,000
Bought a new car for €16,000 paying by cheque
Paid rates of €400 by cheque
Bought €25,000 of stock on credit
Sold goods for cash to the value of €9,000(goods cost €7,000)
Sold goods on credit for €10,000 (goods cost €8,500)
Paid electricity bill for €500
Paid for advertising €240
Sold goods on credit for €5,000 (goods cost €4,000)
Received from customers cash of €4,000
Kate Convey paid suppliers of stock €2,500
Kate withdrew €3,000 from the business for private use
Closing Stock at 31 March 2013 is valued at €7,500.
Required:
(a)
Record the transactions in Kate Convey’s ledger using T accounts and
balance the ledger accounts at 31 March 2013.
(b)
Extract a trial balance as at 31 March 2013.
J. E. Cairnes School of Business & Economics, NUI Galway