Recording of Transactions - II 115 Date Details Amount 2017 Sept. 01 Cash in hand 40,000 Sept. 02 Deposited in bank 16,000 Sept. 04 Received from Puneet in full settlement of claim... Recording of Transactions - II 115 Date Details Amount 2017 Sept. 01 Cash in hand 40,000 Sept. 02 Deposited in bank 16,000 Sept. 04 Received from Puneet in full settlement of claim 11,700 of 12,000. Sept. 05 Cash paid to Rukmani in full settlement of claim of 6,850 7,000 Sept. 06 Sold goods to Sudhir for cash 14,800 Sept. 06 Paid quarterly insurance premium on policy for 2,740 proprietor’s wife Sept. 07 Purchased office furniture 8,000 Sept. 07 Purchased stationery 1,700 Sept. 07 Paid cartage 120 Sept. 10 Paid Kamal, discount allowed by him 200 6,800 Sept. 11 Received from Gurmeet, discount allowed to him 500 14,500 Sept. 12 Amount withdrawn for house hold use 5,000 Sept. 14 Electricity bill paid 1,160 Sept. 17 Goods sold for cash 23,000 Sept. 21 Bought goods from Kamal on cash basis 17,000 Sept. 24 Paid telephone charges 2,300 Sept. 26 Paid postal charges 520 Sept. 28 Paid monthly rent 4,200 Sept. 29 Paid monthly wages and salary 8,250 Sept. 29 Bought goods for cash 11,000 Sept. 30 Sold goods for cash 15,600
Understand the Problem
The question presents a series of transactions that need to be recorded, likely requiring a proper accounting treatment to summarize or analyze these transactions for financial reporting or bookkeeping purposes.
Answer
Identify, classify, record, summarize, and prepare financial statements from the transactions.
Answer for screen readers
The answer cannot be definitively provided without specific transactions or data. However, the proper workflow involves identifying, classifying, recording, summarizing, and preparing financial statements for the given transactions.
Steps to Solve
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Identify the Transactions
Begin by listing out each transaction, noting the dates, descriptions, and amounts involved. -
Classify the Transactions
Determine the nature of each transaction (e.g., sales, purchases, expenses, assets, liabilities) and categorize them accordingly. -
Record Each Transaction
Use the double-entry accounting method. Record each transaction in the appropriate accounts. For example, if there's a sale, debit the cash account and credit the sales account. -
Summarize the Transactions
Create a trial balance by summing the debits and credits to ensure that they balance. This will help to identify any errors in recording. -
Prepare Financial Statements
From the summary of transactions, prepare the necessary financial statements such as the income statement and balance sheet, if required.
The answer cannot be definitively provided without specific transactions or data. However, the proper workflow involves identifying, classifying, recording, summarizing, and preparing financial statements for the given transactions.
More Information
This process encapsulates basic accounting principles that are crucial for maintaining accurate financial records in any business. Ensuring accuracy in each step is vital for reliable financial reporting.
Tips
- Forgetting to record transactions: Always ensure that every transaction is documented.
- Misclassifying accounts: Take time to understand the nature of each transaction to classify them accurately.
- Failing to balance debits and credits: Always check that your entries maintain the accounting equation.
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