Q: Mr Robert commenced business on 1st January, 2011 with a capital of $100,000 in
cash. On the same date he opened the bank account in ADCB and deposited $20,000.
During the month of January 2011 the following transactions took place:
Cash 100,000
Owner’s Capital 100,000
Cash in Bank 20,000
Cash 20,000
Cash on hand 80,000
Cash in Bank 20,000
Owner’s Capital 100,000
Jan 1 Bought goods for cash 70,000
Inventories 70,000
Cash on hand 70,000
2 Sold goods to Steve Co. (Credit) 38,000
Accounts Receivable 38,000
Sales 38,000
15 Sold goods for cash 9,000
Cash on hand 9,000
Inventories 9,000
21 Steve Co. paid by cheque 35,000
Cash in Bank 35,000
Accounts Receivable 35,000
22 Stationery bill paid by cheque 2,000
Stationary Supplies 2,000
Cash in Bank 2,000
