transactions into relevant ledger accounts. Balance them off at the end of the month
and prepare a trial balance.
2007
Oct 1 The proprietor started the business with cash $20000.She put half of this
amount into the bank account immediately.
3 Bought goods from Rainbow Ltd for $21000. One-third of the amount was
paid by cheque and the balance was on credit.
4 Sold goods on credit to Peter for $2400. 7 Peter returned all the goods to Winnie because the goods were damaged. 8 Borrowed a loan of $3000 from Mr Li and paid this amount to Rainbow Ltd.
10 Bought three motor lorries on credit from Speedy Garage for $8000 each. 15 Cash sales $2000. 19 Winnie paid insurance of $2,500 from her own saving on behalf of the business.
23 The insurance paid by Winnie on 19 October included an amount of $700, which was the insurance for her own house. 24 The owner took good costing $500 from the business without paying for them.
26 The owner paid the amount owing to Rainbow Ltd by transferring a motor lorry at cost price and the balance was paid by cheque. 29 Settled Mr Li’s loan by cheque.
31 The owner put half of the balance of cash in hand into the bank account at the end of the month.