T account practice question
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The business owner started a household machine business by depositing £25,000 into the business bank account. Various equipment purchases and sales were made on credit or returned, including buying vans costing £6,800 and £4,300. Debts were paid to suppliers like House Supplies by cheque, including a £9,700 payment to settle a £12,000 original equipment purchase made on credit. Cash was also withdrawn from the business bank account for business operations.
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- 1. The Accounts for Double Entry Worked Example
- 3. 1 May 2012 Started a household machine business putting £25000 into business bank account
- 4. 3 May 2012 Bought equipment on credit from House Supplies £12000
- 5. 4 May 2012 Withdrew £150 cash from the bank and placed it in the cash box
- 6. 7 May 2012 Bought a van paying by cheque £6800.
- 7. 10 May 2012 Sold some equipment that was not needed at cost of £1100 on credit to J. Rose
- 8. 21 May 2012 Returned some of the equipment costing £2300 to House Supplies
- 9. 28 May 2012 J. Rose pays the amount owing £1100 by cheque.
- 10. 30 May 2012 Bought another van paying by cheque £4300
- 11. 31 May 2012 Paid £9700 to House Supplies by cheque.
- 12. Thank You