T accounts — OpenTuition Forums

KKarol9y ago

Hi looking for somebody who will help me with my assignment I have 3 questions. Question 1 D. Harry operates a business in Cork. It opened on 1st October 2016. The following transactions occurred in October. You are required to enter the following transaction in the necessary ledger “T-accounts”. 1 Oct Harry started the business, lodging €50,000 in the bank. 2 Oct Equipment costing €19,000 was purchased by cheque 2 Oct Goods €4,000, purchased on credit from Gleeson Ltd 3 Oct Withdrew €2,000 from the bank to use as Cash in the business 7 Oct Sold goods on credit to Ryan €900 and Barlow €1,300 10 Oct Purchased goods on credit from Gleeson €2,500 12 Oct Goods returned by Ryan €200 14 Oct Paid wages €550 by cash 17 Oct Paid Gleeson €3,800 by cheque 18 Oct Returned goods to Gleeson €360 20 Oct Harry lodged €10,000 of his personal money in the bank account 22 Oct Harry used €70 cash to purchase a new shirt for himself 25 Oct Ryan paid €600 cash and Barlow paid €1,100 by cheque 26 Oct Cash Sales €210 29 Oct Harry took €50 cash for his own personal use 31 Oct Paid Wages €580 using cash and telephone €220 by cheque This Question Is To Be Completed Using T Accounts YOU DO NOT HAVE TO BALANCE OFF THE ACCOUNTS JUST RECORD THE TRANSACTIONS ABOVE

John MoffatTutor9y ago#1

Why not learn how to do it yourself by watching our free lectures on double-entry bookkeeping?

KKarol9y ago#2

Hi John I will watch, I know just about how to do it but just confused about how many accounts should be there.

AAimee9y ago#3

You could start by writing out the necessary journals which will show you the T-accounts you need and which side they go on. Eg the first transaction would be Dr Bank 50,000 Cr Capital 50,000 Not everyone gets the hang of T-accounts but they're necessary at the early levels and give you a good knowledge base as you progress. They especially help later on for working out things like cash flows so keep at it!

KKarol9y ago#4

Thank you Aimee I have first transactions done , that's easy question but on stage where is cheque transactions and not sure how many accounts should I have ?

AAimee9y ago#5

Cheque is just bank, if he's paying by cheque then you Dr expense or PLCA (wherever the money is going) and CR bank. Just think of cheque as being like a debit card transaction in that it comes straight out of the bank. If you do the journals this will tell you how many T accounts you need. I've had a very quick count up and it's more than 10.

KKarol9y ago#6

I will work on this question and go back to you , thank you