QUESTION 1
On 1st February 2023, Lajor set up in business as a retailer. His transactions for the first week in
February are as follows:
February 1: Started business by putting Nle 30,000 cheque and 20,000 cash.
February 2: Withdrew 4,000 cash from the bank.
February 2: Paid rent by cash Nle 6,000 and by cheque 1,200.
February 4: Bought goods for cash 2,000. On credits from Sinneh Nle 3,000 and Patrick Nle
5,000.
February 5: Sold goods for cash Nle 6,500. On credits to Ibrahim 2,500 and Musa 3,000
February 6: Paid wages by cash 1,200 and rent & rates by cheque 250.
February 6: Cash sales 5,000 and cash banked 1,000.
February 7: Received cheques from Ibrahim 1,500 and marsh 2,200.
February 7: Sent Patrick a cheque of 4,600 in full settlement for the goods on 4th February
the balance represent discount received for prompt payment.
Required: Record the above transactions in double- entry form, balance the accounts as at 7th
February 2023, extract a trial balance at the close of business on that date and use the available
data to prepare a detailed financial statement (Trading, profit & loss and balance sheet).
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