Illustration 1
Enter the transaction in the books from the following details for the month of January and extract a trail
balance as at 31st June 1996.
1996
Jan 1 Started business with #7,500 in cash
“ 2 Paid #3,500 of the opening cash into a bank account
“ 3 Bought goods on credit from Ajala #135; Kayode #115; Mark #55
“ 4 Bought office equipment on credit from Ojo #108
“ 6 Sold goods for cash #501
“ 7 Sold goods on credit to Michael #24; Obi #53.
“ 8 Bought motor van paying by cheque #240
“ 10 We returned goods to Ajala #25; Kayode #22
“ 12 We paid by cheque Ajala #110
“ 14 Paid cash #70 to kayoed
“ 16 Received loan by cheque #300
“ 18 The following returned goods to us: Michael; #4; Obi #13
“ 19 Re paid part of the loan by cheque #150
“ 20 Bought equipment by cash #76
“ 21 Cash sales #203
“ 25 Cash purchases #111
“ 27 Commission received by cheque #76
“ 29 Rent received by cash #53
“ 31 Withdrew #75 from bank for private use
Revision Questions
A. Ojo enterprises started business on January1, 1991 with a capital of #16000. The following
transactions were carried out during the month of January:
Jan 1 Purchased furniture by cash #2,400
Jan 2 Purchased stationery #200 cash
Jan 3 Purchased goods by cash #300
Jan 4 Purchased goods on credit from Nagogo #5,500
Jan 15 Sold goods for cash #6,000
Jan 18 Sold goods to Charlotte Umedo on credit #2,400
Jan 20 Paid advertisement expenses. #200 cash
Jan 25 Paid Nagogo #3,500 cash being part of settlement of goods purchased.
Jan 28 Paid rent in cash #300
Jan 31 Paid salaries and wages #600 cash
You are required to write up the ledger accounts recording the above transactions and extract the trial
balance.
B. From the balances of Segun Enterprises, prepare the trial balance for the year 31st December 1992.
#
Capital 9,000
Sundry expenses 300
Bills receivable 5,000
Creditors 10,000
Returns inwards 2,130
Returns outwards 1,1250
Furniture and fittings 33,361
Freehold property 40,000
Carriage outwards 152
Bad debts 68
Cash 18,000
Bank overdraft 7,000
Purchases 171,000
Sales 250,000
Drawings 3,260
Discounts received 254
Discounts allowed 839
Provision for doubtful debts 730
Rent 156
Bills payable 3,752
Debtors 8,000
Carriage inwards 1,100
Accumulated depreciation – furniture 1,700
Advertising 150
General expenses 160
C. Enter the following in the books, balance off and extract a trial balance for the month of March.
March1 Started business with #15000 in the bank and #7,600 cash in hand
March 2 Put #650 of the cash into the bank account
March 3 Bought goods on credit from: ayo #200; Aina #300; Bilikisu #170; Tanko #135.
March 4 Cash sales #500
March 5 Bought machinery by cheque #700
March 7 Bought goods for cash #1,000
March 9 paid insurance by cash #60
March 11 Paid insurance by cash #300
March 13 Received loan from Ojo by cheque #620
March 15 Goods sold on credit to Dapo #300; Femi #65; Kunle #120; Gbenga #120.
March 17 Goods returned to; Ayo #30; Aina #45
March 19 Bought fixtures on credit from Olu #6,000
March 21 The proprietor withdrew cash for personal use #300
March 23 Cash sales #1,500
March 23 The following returned goods to us: Dapo #15; Femi#5
March 29 Paid motor expenses with cash #160; cash purchases #315
March 31 Paid rent cheque #30
D. You are required to enter up the following transactions for June 1998 in the books of Longe Ltd. The
accounts are then to be balanced off and a trial balance extracted as at 31st JUNE 1998.
June 1 Longe started business by depositing #25,000 in a bank account.
June 2 Bought motor van on credit from Bilikisu Enterprises #3,400
June 3 Paid rent by cheque #70
June 4 Received loan of #300 in cash from Kosoko
June 7 Bought office equipment on credit from UTC Nig Ltd. #470
June 10 Cash sales #17,000
June 11 Cash purchases #5,000
June 13 Sold goods on credit to; Odutola #150; Bello #60
June 15 Paid Bilikisu Enterprises by cheque #3,400
June 16 Bought goods for cash #90
June 17 The proprietor took #500 drawings in cash
June 19 Paid sundry expenses by cash #50
June 22 Bought another motor van paying by cheque immediately #3,000
June 23 Withdrew #600 from the bank for business use.
June 30 Goods returned to us by: Odotula #30; Bello #10
