F Polk, after being in the Bakery business for some years without keeping proper records, now decide to keep a double-entry set of books. On 1 September 2021 he estabilishes that his assets and liabilities are as follows: Assets: Van £5700 , Fixtures £2800 , Stock £5200, Debtors: - P Mullen £105 , M Abel £311 Bank £1060, Cash £85 Liabilities: Creditors - Syme Ltds £229, A. Hill £80 He is not sure about Journal entries for the following transactions in September 2021 as follows: 1 September: A debt of £105 owing from P Mullen was written off as a bad debt. 5 September: Office Fixtures originally bought by credit for £150 was returned to the supplier Syme Ltd, as it was unsiuitable. Full allowance will be given for this. 10 September: The business is owed £311 by M.Abel. He is declared bankrupt and we only received £180 cash in full settlement of the debt. 18 September: Bought a Machinery from Brown Ltd. to use in the company. The total purchasing value of the machine is £1800. The owner paid £100 cash, £500 by using cheque and rest of the purchasing value would remain as credit. 26 September: The owner paid half of the machinery debt to Brown Ltd. by issuing a cheque. 28 September: The owner paid £130 an insurance bill via cheque thinking that it was in respect of the business. We now discover that £70 of the amount paid was in fact insurance of our private house. Required: You are required to show the Journal entries(only) (with narrative) necessary to record the items which occur in September 2021.
F Polk, after being in the Bakery business for some years without keeping proper records, now decide to keep a double-entry set of books. On 1 September 2021 he estabilishes that his assets and liabilities are as follows:
Assets: Van £5700 , Fixtures £2800 , Stock £5200,
Debtors: - P Mullen £105 , M Abel £311
Bank £1060, Cash £85
Liabilities: Creditors - Syme Ltds £229, A. Hill £80
He is not sure about
1 September: A debt of £105 owing from P Mullen was written off as a
5 September: Office Fixtures originally bought by credit for £150 was returned to the supplier Syme Ltd, as it was unsiuitable. Full allowance will be given for this.
10 September: The business is owed £311 by M.Abel. He is declared bankrupt and we only received £180 cash in full settlement of the debt.
18 September: Bought a Machinery from Brown Ltd. to use in the company. The total purchasing value of the machine is £1800. The owner paid £100 cash, £500 by using cheque and rest of the purchasing value would remain as credit.
26 September: The owner paid half of the machinery debt to Brown Ltd. by issuing a cheque.
28 September: The owner paid £130 an insurance bill via cheque thinking that it was in respect of the business. We now discover that £70 of the amount paid was in fact insurance of our private house.
Required:
You are required to show the Journal entries(only) (with narrative) necessary to record the items which occur in September 2021.
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