Desmond operates an interior design studio in the neighbourhood. The following are transactions for the month of October 2023. (a) Desmond commenced his business with $100,000 in the business bank account and his personal laptop value at $2,000. (b) He renovated the studio and paid the contractor $5,000 by cheque. (c) A motor vehicle of $121,000 was bought from Lucky Enterprise. A cheque of $21,000 was issued as partial payment and the remainder to be paid by a bank loan. (d) Desmond received a cheque of $12,000 from a walk-in customer for designing a residential unit. (e) An invoice of $20,000 was sent to Lucy Trading for designing work completed. No payment was received yet. (f) Issued a cheque to pay office utilities $800. (g) Received a cheque of $10,000 from Lucy Trading as partial payment. (h) Desmond withdrew $40 cash from the bank for personal use. (i) Studio's furniture of $10,000 was bought from Hive Enterprise. A personal cheque of $1,000 was issued as partial payment and the remainder to be subsequently. (i) Took a bank loan of $100,000 for business purpose. (k) Issued cheque to pay salaries of $7,000 to his employees. 2 (1) Desmond withdrew $5000 cash from the bank for business use. (m) Paid Hive Enterprise for the remaining amount with a cheque. Required: (i) For each of the above transactions, write the accounts and amounts to be debited and credited. (ii) Compute the amount of cash at bank as at 31 October 2023 of Desmond's business (Workings are to be shown clearly)
Desmond operates an interior design studio in the neighbourhood. The following are transactions for the month of October 2023. (a) Desmond commenced his business with $100,000 in the business bank account and his personal laptop value at $2,000. (b) He renovated the studio and paid the contractor $5,000 by cheque. (c) A motor vehicle of $121,000 was bought from Lucky Enterprise. A cheque of $21,000 was issued as partial payment and the remainder to be paid by a bank loan. (d) Desmond received a cheque of $12,000 from a walk-in customer for designing a residential unit. (e) An invoice of $20,000 was sent to Lucy Trading for designing work completed. No payment was received yet. (f) Issued a cheque to pay office utilities $800. (g) Received a cheque of $10,000 from Lucy Trading as partial payment. (h) Desmond withdrew $40 cash from the bank for personal use. (i) Studio's furniture of $10,000 was bought from Hive Enterprise. A personal cheque of $1,000 was issued as partial payment and the remainder to be subsequently. (i) Took a bank loan of $100,000 for business purpose. (k) Issued cheque to pay salaries of $7,000 to his employees. 2 (1) Desmond withdrew $5000 cash from the bank for business use. (m) Paid Hive Enterprise for the remaining amount with a cheque. Required: (i) For each of the above transactions, write the accounts and amounts to be debited and credited. (ii) Compute the amount of cash at bank as at 31 October 2023 of Desmond's business (Workings are to be shown clearly)
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 14DQ
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Transcribed Image Text:Desmond operates an interior design studio in the neighbourhood. The following are transactions for the month of
October 2023.
(a) Desmond commenced his business with $100,000 in the business bank account and his personal laptop value at
$2,000.
(b) He renovated the studio and paid the contractor $5,000 by cheque.
(c) A motor vehicle of $121,000 was bought from Lucky Enterprise. A cheque of $21,000 was issued as partial payment
and the remainder to be paid by a bank loan.
(d) Desmond received a cheque of $12,000 from a walk-in customer for designing a residential unit.
(e) An invoice of $20,000 was sent to Lucy Trading for designing work completed. No payment was received yet.
(f) Issued a cheque to pay office utilities $800.
(g) Received a cheque of $10,000 from Lucy Trading as partial payment.
(h) Desmond withdrew $40 cash from the bank for personal use.
(i) Studio's furniture of $10,000 was bought from Hive Enterprise. A personal cheque of $1,000 was issued as partial
payment and the remainder to be subsequently.
(i) Took a bank loan of $100,000 for business purpose.
(k) Issued cheque to pay salaries of $7,000 to his employees.
2
(1) Desmond withdrew $5000 cash from the bank for business use.
(m) Paid Hive Enterprise for the remaining amount with a cheque.
Required:
(i) For each of the above transactions, write the accounts and amounts to be debited
and credited.
(ii) Compute amount of cash at bank as at 31 October 2023 of esm
business. (Workings are to be shown clearly).
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