- 14 Marks
FA – MAY 2015 – L1 – SB – Q1b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)
Provide journal entries for transactions in a trading company.
Question
Babariga Trading Company has the following extracts from its financial records as at 31 January 2014:
| Date | Transaction Description | Amount (N’000) |
|---|---|---|
| Jan 1 | Cash in hand | 50 |
| Jan 1 | Cash at bank | 150 |
| Jan 1 | Receivables | 300 |
| Jan 1 | Inventory | 100 |
| Jan 2 | Purchased goods for cash | 70 |
| Jan 5 | Goods bought from Faleye | 500 |
| Jan 9 | Bought shop fittings and paid by cheque | 27 |
| Jan 12 | Cash sales | 129 |
| Jan 15 | Goods sold to Okonkwo | 100 |
| Jan 16 | Paid Faleye by cheque on account | 400 |
| Jan 17 | Cash sales | 350 |
| Jan 18 | Paid cash into bank | 150 |
| Jan 20 | Bought goods from Faruk | 140 |
| Jan 25 | Sold goods to Shola | 150 |
| Jan 28 | Bought desk-top computer by cheque | 70 |
| Jan 31 | Paid for stationery in cash | 40 |
Required:
Use Journal entries to record the above balances and transactions in the books of Babariga Trading Company. (14 Marks)
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