Interpreting Ledger Accounts (Sec 3 Part II)

Refer to the Cash at bank account in the picture.

Interpret the entry on 3 Jan 2023.

• The owner withdrew $20000 from the business bank account for personal use.

• The owner contributed $20000 into the business bank account.

• The owner withdrew $20000 worth of inventory for personal use.

• The owner contributed $20000 worth of inventory into the business.

Refer to the Cash at bank account in the picture.

Interpret the entry on 10 Jan 2023.

• The business paid $2500 of wages and salaries by cash.

• The business earned $2500 of wages and salaries.

• The business paid $2500 of wages and salaries by cheque.

• The owner paid $2500 of wages and salaries.

Refer to the Cash at bank account in the picture.

Interpret the entry on 13 Jan 2023.

• The business contributed $3000 cash into the business.

• The owner contributed $3000 into the business bank account.

• The owner withdrew $3000 cash from the business for personal use.

• The owner withdrew $3000 from the business bank account for personal use.

Refer to the Inventory account in the picture.

Interpret the entry on 2 Feb 2023.

• The business returned $8000 worth of inventory to credit supplier, Johnny.

• The business bought inventory worth $6000 on credit from Johnny8

• The business bought inventory worth $8000 and paid by cheque.

• The business sold inventory which cost $8000 on credit.

Refer to the Inventory account in the picture.

Interpret the entry on 14 Feb 2023.

• The business bought inventory worth $1000 on credit.

• The business bought inventory worth $1000 and paid by cheque.

• The business sold inventory which cost $1000.

• The customer returned $1000 worth of inventory.

Refer to the Trade receivable, Clarissa account.

Interpret the entry on 2 March 2023.

• The business bought inventory for $4100 from Clarissa on credit.

• The business sold goods and received $4100 cheque from Clarissa.

• The business sold goods to Clarissa for $4100 on credit.

• Credit customer, Clarissa returned goods which was sold to her for $4100 back to the business.

Refer to the Trade receivable, Clarissa account.

Interpret the entry on 5 March 2023.

• The business returned the goods worth $300 back to credit supplier, Clarissa.

• The business returned the goods worth $300 back to credit customer, Clarissa.

• The business sold goods to Clarissa for $300 on credit.

• Credit customer, Clarissa returned goods which was sold to her for $300 back to the business.

Refer to the Trade receivable, Clarissa account.

Interpret the entry on 14 March 2023.

• The business received $3800 cheque from credit customer, Clarissa.

• The business received $3800 cheque from credit supplier, Clarissa

• The business paid$3800 cheque to credit supplier, Clarissa

• Sold goods to Clarissa for $3800 and received a cheque.