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Show the journal entries necessary to record the following items: 2003 May 1 bought a motor vehicle on credit from Motors Ltd for Sh.6, 790. 2003...

      

Show the journal entries necessary to record the following items:
2003 May 1 bought a motor vehicle on credit from Motors Ltd for Sh.6, 790.
2003 May 3 A debt of Sh.34 owing from N Smart was written off as a bad debt.
2003 May 8 Furniture bought by us for Sh.490 was returned to the supplier Wood Offices, as it was unsuitable. Full allowance will be given.
2003 May 12 we are owed Sh.150 by W Hayes. He is declared bankrupt and we received
Sh.39 in full settlement of the debt.
2003 May 14 we take Sh.45 goods out of the business stock without paying for them.
2003 May 28 Some time ago we paid an insurance bill thinking that it was all in respect
Of the business. We now discover that Sh.76 of the amount paid was in fact
Insurance of our private house.
2003 May 28 Bought Machinery Sh.980 on credit from Xerox Machines Ltd.

  

Answers


Caroline
SOLUTION







General Journal





DATE
DETAILS

DEBIT
CREDIT

1st May
Motor Vehicle
6,790



Motor Ltd.


6,790


(Motor vehicle





bought on credit




From Moor Ltd.)



3rd May
Bad debts

34



N Smart-Debtors

34


(Amount due from N




Smart





Written off as bad)



8th May
Wood offices

490




Furniture



490


(Office
Furniture




returned to






Wood office
)




12th May
Bad debts


111



W.Hayes



111


(amout
Owed
now




written
off
as
Bad




debt.
)





14th May
Drawing for goods
45



Purchase



45


(Goods
taken
from




the business
for




Personal use.
)




8th May
Drawings


76



Insurance Expense

76


(Insurance relating to




private
house
now




transferred

to




Drawings.)





28th May
Machinery


980



Xerox Machines

980


(Machinery
bought




From







Xerox Machines)





Carolinemakenamutwiri answered the question on December 14, 2018 at 11:17


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