MUNCHIES CATERER Munchie's caterers are a small sole trading business which will be operated from the owner's home and which will employ four people. The starting capital consists of the owner's savings of $20,000 in the bank. OPERTING DESCIONS: B The business will supply lunches daily, Monday to Friday, to a factory owned by Naz Rudeen. Payment will be received at the end of the month. The business plans to take a small catering job. Payments for these jobs will be received on delivery. O Purchase of perishable goods will be made weekly for cash and non-perishable will be purchased on credit and monthly basis B Employees are to be paid monthly. The bank account will be used for all payments for purchases and wages E The cash account will be used for all other payments ACCOUTING PROCEDURES Financial periods for which accounts will be kept: 1-30 September and 1-31 October. Accounting records kept: General Journal, three-column cash book purchases and sales journals and a general Journal. Business Transactions for both periods: ACTI VITY 1- record in the General Journal the entries on September 1 and 3. September 1 started business by depositing cash in the business bank account $20,000 September 2 withdrew cash from bank for office use $1,000 September 3 an electric deep fryer was purchased on credit from Peters Appliances in Princes town for $1,385 AVTIVITY 2a- draw up purchase invoice with the information given on September 3rd. (Students can create the other information to be included on the invoice such as address and invoice number) September 3 the firm received a purchase invoice from Mega Foods traders for the following 1 case of whole Milk @ 72 per case 2 Cases of seedless raisins $98 per case 1 bale rice $80 50 Ibs sugar @112 A 10% discount is to be applied and the terms of trade are 2½% cash discounts paid in 15 days. ACTIVITY 2b-Enter invoice information into appropriate ledgers and journals. ACTIVITY 3 - draw up a sales invoice for Septembers 30th. Record the relevant transactions in the day books including cash book. (Remember transaction of 1stSept and 2 Nd Sept. September 7th Received cheque $5000 for private catering job September 9th Cash purchases $450