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Journal Entries & Trial Balance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Journal Entries & Trial Balance

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • Author
    Posts
  • July 5, 2023 at 7:15 pm #687684
    Hassanx
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hi,
    I hope someone can help me since I am struggling a little bit.
    I need to make a T Balance and I am unsure about the journal entries for the following. Can someone help please?

    1) Alpha paid £5,000 into the business bank account for 5,000 £1 ordinary shares.
    Beta paid £2,500 into the business bank account for 2,500 £1 ordinary shares.
    Gamma paid £2,500 into the business bank account for 2,500 £1 ordinary shares.

    2) Beta’s son loaned the company £10,000 with interests charged at 5% pa and paid
    annually in arrears

    3) Purchased on credit 7,000 widgets from FGH Ltd at £1 per widget
    Purchased up front 5,000 widgets from ILM Ltd at £0.25 per widget

    4) Purchased a van for £2,000 cash
    Purchased a second van for £5,000 on Hire Purchase, repayable in monthly instalments over 3 years, interest charge of £500 for the total period. The first payment was made on January and the interest charged on a straight-line basis.

    Thank you very much and sorry again for bothering.

    July 6, 2023 at 7:57 am #687696
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    The entries for the first 3 are all explained in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.

    Item 4 concerning a hire purchase agreement is not examinable in Paper FA.

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    Posts
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