Answer to Question #322641 in Accounting for Reigns

Question

The following transactions of Big Brown, a sole trader, took place from 1 January to 31 December 2015.

- Started business with capital in cash K10 000

- Deposited K8,000 cash into the bank

- Paid for rentals by cheque K2500

- Bought goods and paid by cheque K400

- Paid for stationery in cash K750

- Sold goods and received cash K600

- Bought goods on credit from suppliers K575

- Paid wages by cash K325

- Sold goods on credit to customers K780

- Withdrew K500 cash for personal use

- Paid electricity by cheque K250

Required:

Open the necessary accounts and prepare a trial balance as at 31 December 20X5.

Answer 1

The answer to your question is provided in the image: