Junior Cycle Business Studies Cash Flow: This is a Books of First Entry,

Question

This is a Books of First Entry, Ledger and Trial Balance Question.

Answer all parts of this question:

GOLD Ltd, a plumbing business, had both credit and cash transactions during the month of May 2016.

(A) Record the following Credit Transactions in the Purchases and Sales Books of GOLD Ltd for the month of May 2016.

Post relevant figures from the books to the Ledger Accounts.

1/5/2016 Purchased goods on credit from HAND Ltd Invoice No. 6 €60,000 + VAT 23%

12/5/2016 Sold goods on credit to SUM Ltd Invoice No. 94 €48,000 + VAT 23%

20/5/2016 Purchased goods on credit from HAND Ltd Invoice No. 17 €16,000 + VAT 23%

(B) Record the following Bank Transactions for the month of May 2016 in the Analysed Cash Book of GOLD Ltd.

Post relevant figures to the Ledger Accounts.

Note: Analyse the Bank Transactions using the following money column headings:

Debit (Receipts) Side:  Bank  Sales  VAT  Share Capital

Credit (Payments) Side:  Bank  Purchases  VAT  Creditors  Insurance

6/5/2016 Shareholders invested €110,000 and this was lodged Receipt No. 1

10/5/2016 Sales lodged €55,350 (€45,000 + VAT €10,350)

16/5/2016 Paid HAND Ltd Cheque No. 20 €54,000

27/5/2016 Purchases for resale Cheque No. 21 €8,300 + VAT 23%

31/5/2016 Paid for insurance Cheque No. 22 €12,000

(C) Balance the accounts on 31 May 2016 and extract a Trial Balance as at that date.

Date	Details	Invoice No.	Net (€)	VAT (€)	Total (€)
01/05/2016	HAND Ltd	6	60,000	13,800	73,800
20/05/2016	HAND Ltd	17	16,000	3,680	19,680

Date	Details	Bank (€)	Sales (€)	VAT (€)	Share Capital (€)
06/05/2016	Share Capital	110,000			110,000
10/05/2016	Sales	55,350	55,350	10,350

Date	Details	Bank (€)	Purchases (€)	VAT (€)	Insurance (€)
16/05/2016	HAND Ltd	54,000	54,000
27/05/2016	Purchases for resale	8,300	8,300	1,909
31/05/2016	Insurance	12,000			12,000

This is a Books of First Entry, Ledger and Trial Balance Question - Junior Cycle Business Studies - Question 1 - 2016