Draw T-account for transactions given below: Transactions 1: Businessman started
ID: 2514383 • Letter: D
Question
Draw T-account for transactions given below:
Transactions 1: Businessman started his business with $5000 paid into a business bank on 1 Aug 2015.
Transaction 2: The businessman purchase furniture with amount of $600 on credit from TKR4 ltd on 2 Aug 2015.
Transaction 3: The businessman purchases a PC computer with a cheque for $600 on 3 Aug 2015.
Transaction 4: The businessman pays TKR4 ltd $200 by cheque on 4 Aug 2015.
Transaction 5: The businessman borrows $4,000 on loan from a bank on 5 Aug 2015. The money is paid into the business bank account.
Explanation / Answer
Answer
Cash
Capital [Transaction 1]
$ 5,000.00
Computer [transaction 3]
$ 600.00
Bank Loan [transaction 5]
$ 4,000.00
Accounts payable [transaction 4]
$ 200.00
Ending Balance
$ 8,200.00
Total
$ 9,000.00
Total
$ 9,000.00
Furniture
Accounts payable [Transaction 2]
$ 600.00
Ending Balance
$ 600.00
Total
$ 600.00
Total
$ 600.00
Accounts payable
Cash [trasnaction 4]
$ 200.00
Furniture [transaction 2]
$ 600.00
Ending Balance
$ 400.00
Total
$ 600.00
Total
$ 600.00
Computer
Cash [Transaction 3]
$ 600.00
Ending balance
$ 600.00
Total
$ 600.00
Total
$ 600.00
Bank Loan
Ending balance
$ 4,000.00
Cash [Trasnaction 5]
$ 4,000.00
Total
$ 4,000.00
Total
$ 4,000.00
Cash
Capital [Transaction 1]
$ 5,000.00
Computer [transaction 3]
$ 600.00
Bank Loan [transaction 5]
$ 4,000.00
Accounts payable [transaction 4]
$ 200.00
Ending Balance
$ 8,200.00
Total
$ 9,000.00
Total
$ 9,000.00
Furniture
Accounts payable [Transaction 2]
$ 600.00
Ending Balance
$ 600.00
Total
$ 600.00
Total
$ 600.00
Accounts payable
Cash [trasnaction 4]
$ 200.00
Furniture [transaction 2]
$ 600.00
Ending Balance
$ 400.00
Total
$ 600.00
Total
$ 600.00
Computer
Cash [Transaction 3]
$ 600.00
Ending balance
$ 600.00
Total
$ 600.00
Total
$ 600.00
Bank Loan
Ending balance
$ 4,000.00
Cash [Trasnaction 5]
$ 4,000.00
Total
$ 4,000.00
Total
$ 4,000.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.