Draw T-account for transactions given below: Transactions 1: Businessman started

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

Bank Account Debit Credit Date Amount Date Amount 01-Aug-15 Capital 5000 03-Aug-15 Computer Equipment 600 05-Aug-15 Bank Loan 4000 04-Aug-15 Accounts Payable TKR4 Ltd 200 Balance C/d 8200 Totals 9000 Totals 9000 Capital Debit Credit Date Amount Date Amount Balance C/d 5000 01-Aug-15 Bank 5000 5000 5000 Furniture Debit Credit Date Amount Date Amount 02-Aug-15 Accounts Payable TKR4 Ltd 600 Balance C/d 600 Totals 600 Totals 600 Accounts Payable- TKR4 Ltd Debit Credit Date Amount Date Amount 04-Aug-15 Bank 200 02-Aug-15 Furniture 600 Balance C/d 400 600 600 Computer Equipment Debit Credit Date Amount Date Amount 03-Aug-15 Bank 600 Balance C/d 600 Totals 600 Totals 600 Bank Loan Debit Credit Date Amount Date Amount Balance C/d 4000 05-Aug-15 Bank 4000 4000 4000

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