Advanced Placement (AP), 28.11.2020 09:10 haftjnd9156
Henry York is a sole trader who keeps records of his cash and bank transactions in a three column cash book. His transactions for the month of March were as follows:
March
1 Cash in hand £100, Cash at bank £5,672
4 York received a cheque for £1,246 from W Abbot which was paid directly into the bank.
This represented sales.
6 Paid wages in cash £39
8 Sold goods for cash £152
10 Received cheque from G Smart for £315, in full settlement of a debt of £344; this was
paid directly into the bank.
11 Paid sundry expenses in cash £73
14 Purchased goods by cheque for £800
18 Paid J Sanders a cheque of £185 in full settlement of a debt of £201
23 Withdrew £100 from the bank for office purposes
24 Paid wages in cash £39
26 Sold goods for cash £94
28 Paid salaries by cheque £230
31 Retained cash amounting to £150 and paid the remainder into the bank
Required:
(a) Enter the above transactions within T-accounts and bring down the balances.
(b) Assuming no opening debtors, creditors or stock, prepare a trading and profit and loss
account for the month of March.
Answers: 2
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Henry York is a sole trader who keeps records of his cash and bank transactions in a three column ca...
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