timer Asked: Jul 28th, 2015

Question description

Mr. Rono sets up a business by investing $7000 of his own money into a business account and in his first period of accounting the following transactions occured:-

a)paid rent for the period $2500

b)purchased equipment $5000

c)raised a loan of $1000 from the bank

d)purchased shop fittings of cash $2000

e)sale of equipment cash $10000

f)sale of equipment on credit $2500

g)payment to trade payable account $5000

h)payment from trade receivable account $2500

i)interest on loan paid $100

j)other expenses on paid in cash $1900

k)drawings of $1500.

Required, prepare ledger accounts, profit and loss account and balance sheet.

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