Question 1: [38 marks]

Below is the Ledger of Timothy Kingfisher for January 2022

DR

Capital

30,000 5/1/2022

CR

30,000

Closing balance / c/d

Bank

Total

30,000

Total

Opening Bal/b/a

30,000

30,000

DR

5/1/2022

Capital

Closing Bal/c/d

30,000

3,000

Bank

6/1/2022 Purchases

8/1/2022 Computer

10/1/2022 Office equipment

CR

20,000

1,000

12,000

Total

30,000

Total

Opening Bal/b/a

30,000

3,000

DR

6/1/2022

Bank

Purchases

20,000

Closing Bal/c/a

CR

20,000

Total

20,000

Opening Bal/b/d

20,000 Total

20,000

Computer

1,000

DR

8/1/2022

CR

Bank

Closing Bal/c/a

1,000

Respuesta :

1. The transactions relating to the ledger postings above for Timothy Kingfisher for January 2022 are as follows:

Jan. 5 Bank $30,000 Capital $30,000

Jan. 6 Purchases $20,000 Bank $20,000

Jan. 8 Computer $1,000 Bank $1,000

Jan. 10 Office Equipment $12,000 Bank $12,000

Jan. 25 Mr. R.R. Yogo $10,000 Sales Revenue $10,000

2. Journalizing the entries of the January transactions for Timothy Kingfisher is as follows:

Jan. 5 Debit Bank $30,000

Credit Capital $30,000

Jan. 6 Debit Purchases $20,000

Credit Bank $20,000

Jan. 8 Debit Computer $1,000

Credit Bank $1,000

Jan. 10 Debit Office Equipment $12,000

Credit Bank $12,000

Jan. 25 Debit Mr. R.R. Yogo $10,000

Credit Sales Revenue $10,000

3. An email, advising the owner of the business based on the evidence from the balances in the T accounts is as follows:

April 12, 2022

From: Financial Controller

To: Managing Director, CEO

Subject: Maintaining Positive Bank Balances

The above subject refers.

There is a need to plan cash expenses to match with cash inflows, using a Cash Budget.

For example, the Office Equipment that made the business overdraw its account with the bank could have been negotiated as a credit transaction.

Alternatively, an arrangement could have been made with the bank on overdraft facilities to help avoid unnecessary bank charges and penalties.

Regards,

4. The balance on the Bank T-account on January 9, 2022, would have been $9,000 ($30,000 - $20,000 - $1,000).  This is the bank balance before the purchase of Office Equipment on January 10, 2022.

Question Completion:

1. Write down the transactions relating to the ledger postings above.

2. Journalize the entries.

3. Using an email format, advise the owner of the business drawing on evidence from the balances in the T accounts.

4. What would the balance be on the Bank T-account as of 9th January 2022. Show workings.

Learn more about ledger postings at https://brainly.com/question/13408214

ACCESS MORE
EDU ACCESS