Problem proper.docx

Problem 1: Mr. Robert commenced business on 1st January, 2011 with a capital of $100,000 in cash. On the same date he op

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Problem 1: 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: Jan 1 Bought goods for cash 70,000 2 Sold goods to Steve Co. (Credit) 38,000 15 Sold goods for cash 9,000 21 Steve Co. paid by cheque 35,000 22 Stationery bill paid by cheque 2,000 Telephone bill by cash 500 31 Paid rent by cash 2,000 Paid salaries by cash 3,000 Withdrew cash personal use 5,000 Required: Make journal entries for the transactions and post them to ledgers.