TRANSACTIONS
2010
July 01 Started a business with $10 000 cash. Opened a current account at the Bank of Nova Scotia, Frankfield Branch and deposited $2 000 in the account
Obtained shop to rent at Gaypa Plaza and paid rent for the month of $800 cash
Purchased show casr $950, display racks $890 (fixtures and fittings) and three computers $500 each all on credit from Appliance Traders.
July05 Negotiated and obtained a loan of $20 000 from the Bank of Nova Scotia, Frankfield Branch. This loan carried an interest rate of 6% per annum for five years
July 08 Bought the following items on credit from N. Wilson Bookstore:
200 pencils @ $2.00 each
50 envelopes @ 1.00 each
250 notepads @ $2.00 each
70 pencil erasers @ $1.00 each
500 hardcover notebooks @ $3.00 each
July 10 Cash Purchases from Chung’s Superstore
10 Laptops @ $350.00 each
5 desktops @ $550 each
100 printer inks @ $40 each
July 11 Paid travel expenses $1250 cash
July 12 Sold the following items on credit to Y. Evans
25 pencil erasers
70 pencils
20 evelopes
50 notepads
100 hardcover notebooks
3 laptops
40 printer inks
A Trade Discount of 2% was given
July 16 withdrew cash from bank for business use $2500.00
July 18 Sold the following items for cash
100 pencils
75 notepads
150 hardcover notebooks
2 desktops
20 printer inks
July 23 we returned 10 notebooks to N. Wilson Bookstore. These notebooks were considered to be defective.
July 26 received a cheque from Y. Evans for $5818.75. Evans took cash discount of 5% to which he was entitled
July 27 the following items were sold on credit to Joe Hall Variety Store:
1 desktop
30 printer inks
100 notebooks
4 laptops
Less 2% Trade Discount
July 28 the following items were sold and a cheque received for payment
25 pencil erasers
50 hardcover notebooks
30 pencils
25 envelopes
1 laptop
July 28 credit Purchases from C. Baker Business Solutions
500 pencils @ $2.00 each
300 notepads @ $2.50 each
70 envelopes @ $1.25 each
20 laptops @ $380 each
150 hardcover notebooks @ $3.00 each
200 printer inks at $45 each
July 30 Paid utilities – electricity $ 395 and water $67 by cash
July 31 withdrew $12 000 by cheque for private use
July 31 deposited all cash into bank except $500
Additional Notes
1. Depreciation on fixtures and office equipment was at the rate of 10% per annum using the Straight Line Method
2. There is a standing order with the Bank of Nova Scotia, Frankfield to pay insurance premiums of $125.00 to United Reliance Insurance Limited
Item Selling Price (each)
Pencils 3.00
Envelopes 2.00
Notepads 5.00
Pencil erasers 2.00
Hardcover notebooks 6.00
Laptops 500.00
Desktops 800.00
Printer inks 90.00
Principles of Accounts School based Assessment
