Ch 4.5 - Interpreting Ledger Accounts

Refer to the Cash at bank account.

State the journal entry for 2 Mar 2023.

• Dr Inventory

  Cr Cash at bank

• Dr Cash at bank

  Cr Inventory

• Dr Capital

  Cr Inventory

Refer to the Cash at bank account in the picture.

Interpret the entry on 2 March 2023

• The business bought goods on credit for $2000.

• The business bought motor vehicles on credit for $2000.

• The owner withdrew goods worth $2000.

• The business purchased goods for $2000 and paid by cheque.

Refer to the Cash at bank account in the picture.

Interpret the entry on 7 March 2023.

• The business paid Jason $4200.

• The business received $4200 from credit customer, Jason for amount owing

• The business received $4200 cheque from credit customer, Jason for amount owing.

• The business received $4200 cheque from credit supplier, Jason for amount owed by him.

Refer to the Trade payable account in the picture.

Interpret the entry on 6 April.

• The business bought inventory for $2000 and paid by cheque.

• The business bought inventory for $2000 on credit from Durolo

• The business returned inventory worth $2000 to credit supplier, Durolo

Refer to the Trade payable account in the picture.

Interpret the entry on 8 April.

• The business bought inventory for $3100 and paid by cheque.

• The business paid credit supplier, Durolo $3100 by cheque

• The business received $3100 from credit customer, Durolo by cheque

Refer to the Trade payable account in the picture.

Interpret the entry on 15 April.

• Credit customer Durolo returned $1800 worth of goods back to the business.

• The business bought inventory for $1800 on credit from Durolo

• The business returned inventory worth $1800 to credit supplier, Durolo

Refer to the bank loan account in the picture.

Interpret the entry on 2 May.

• The business took a bank loan of $45 000 and the amount is deposited in the business bank account.

• The owner contributed

  $45 000 to the business bank account.

• The business paid $45000 bank loan by cheque.

Refer to the bank loan account in the picture.

Interpret the entry on 10 May.

• The business took a bank loan of $35 000 and the amount is deposited in the business bank account.

• The owner contributed

  $35 000 to the business bank account.

• The business paid $35000 bank loan by cheque.