Question -
Wong Consulting commenced business on 1 May 20X6 with a capital of $5,000, of which $1,000 was in cash and $4,000 in a bank current account. The transactions during May 20X6 were as follows:
1 May Borrowed $2,000 from Heng Seng Bank in the form of a cheque
2 May Paid rent of $750 by cheque
5 May Paid wages of $120 in cash
8 May Purchased goods for $1,380 by cheque
10 May Sold goods for $650 cash
12 May Drawings in cash: $200
15 May Bought goods on credit for $830 from S Or, a supplier
18 May Sold goods on credit for $1,250 to K Hung, a customer
20 May Bought shop fittings of $2,500 by cheque
23 May Paid rates of $325 in cash
25 May Paid gas bill of $230 by cheque
27 May Returned goods costing $310 to S Or
28 May K Hung returned goods with an invoice value of $480
29 May Wong introduced further capital with a $3,000 cheque
30 May Bought stationery for $90 in cash.
31 May Sent S Or a cheque for $300
31 May Received a cheque for $500 from K Hung
Required: Open the following T-accounts: Bank (100); Cash (101); Accounts receivable (102); Accounts payable (103); Fixtures and Fittings (104); Purchases (105); Purchases returns (106); Loan - Herig Seng Bank (201); David Wong, Capital (301); David Wong, Drawings (302); Sales (401); Sales returns (402) Rent and rates (501); Lighting and heating (502);Wages (503); Printing and stationery (504). Post the above transactions to the ledger accounts in T-account format.