Lesson Progress
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Illustration:

Mr. Ukpoju trading as Ukpo & Sons started a business on 1st May with a capital of N200,000 as cash in the bank. The following transactions took place during the month.

May 2

Purchased goods on credit from Olu for

N5,000

Purchased goods for cash

N50,000

May 3

Bought Stationery for Cash

N5,000

May 5

Bought Furniture & fitting by cheque

N21,000

May 6

Sold goods on credit to Mr. Umeh for

N20,000

May 8

Cash Sales paid into bank

N42,000

May 9

Withdrew cash from the bank for office use

N5000

May 11

Received cheque of N19,000 from Umeh in full settlement of his debt of

N20,000

May 12

Bought goods from Ola on Credit

N5500

May 13

Paid Ola N5000 cash in full settlement of debt owed by him

N5500

May 17

Cash Sales

N30,000

May 18

Sold goods on Credit to Ojodomo

N4,000

May 20

Mr. Ojodomo was allowed to pay cash in full settlement of the debt

N3,550

May 23

Paid Cash into bank

N25,000

May 27

Paid Wages by cheque

N5,000

May 30

Bought goods by cheque

N36,000

May 30

Cash sales paid into bank

N240,000

You are required to:

(a) Prepare Two Column Cash book

(b) Extract ledger entries and balance off.

Solution
Screen Shot 2020 12 27 at 10.49.13 PM

Ledger Entries

Screen Shot 2020 12 28 at 11.48.35 AM
Screen Shot 2020 12 28 at 11.49.29 AM
Screen Shot 2020 12 28 at 11.50.03 AM
Screen Shot 2020 12 28 at 11.50.20 AM
Screen Shot 2020 12 28 at 11.50.34 AM
Screen Shot 2020 12 28 at 11.51.05 AM
Screen Shot 2020 12 28 at 11.52.25 AM
Screen Shot 2020 12 28 at 11.52.39 AM
Screen Shot 2020 12 28 at 11.53.28 AM
Screen Shot 2020 12 28 at 11.54.04 AM

Evaluation Questions

1. Explain Ledger

2. Explain the classification ledger

3. State the importance of Ledger

4. Explain the classification of Account

Responses

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