Answer to Question #231745 in Accounting for OK MOLEFE

Question

good day

here is my question:Formulate your own transactions and show how the entry for these transactions will differ when it is entered in the books of a Trading business and a Manufacturing business. You must make use of T-accounts to illustrate the difference between the entries. Formulate your transactions to include the following type of activities that will take place during the financial year. Formulate ONE transaction for a Trading business and ONE transaction for a Manufacturing business from the different type of transactions that will take place during the financial year, listed below:

a. Cash Purchases.

b. Operating activities in the daily dealings of a Trading and Manufacturing business. 

Answer 1

Solution:

The transactions are illustrated as follows: