Solution 4.5

Enter the above transactions in Frank's ledger accounts for September.
Balance the accounts and prepare a trial balance for September.


		Capital Account
			€			€
					Bank	15,000
Balance c/d			20,000		Bank	5,000
			20,000			20,000
					Balance c/d	20,000

		Bank Account
Capital			15,000		Rent	6,000
Cash			6,000		Rent	2,000
Alan			5,500		Cash	500
Capital			5,000		Car showrooms	4,000
					Michael	8,000
					Jennifer	2,000

					Balance c/d	9,000
			31,500			31,500
Balance b/d			9,000

		Cash Account
Sales			6,000		Bank	6,000
Bank			500		Office expense	250
					Balance c/d	250
			6,500			6,500
Balance b/d			250

		Motor vehicles Account
Car Show Ltd			4,000		Balance c/d	4,000
Balance b/d			4,000

		Car Show Rooms Account
Bank			4,000		Motor veh	4,000


		Purchases Account
Michael			5,000
Jennifer			3,000
Michael			10,000		Balance c/d	18,000
			18,000			18,000
Balance b/d			18,000

		Sales Account a/c
					Cash	6,000
Balance c/d			14,000		Alan	8,000
			14,000			14,000
					Balance b/d	14,000

		Rent Account a/c
Bank			6,000
Bank			2,000		Balance c/d	8,000
			8,000			8,000

		Office Expenses a/c
Cash			250		Balance c/d	250


		Michael Account a/c
Purchases returns			2,000		Purchases	5,000
Bank			8,000		Purchases	10,000
Balance c/d			5,000
			15,000			15,000
				Balance b/d		5,000

		Purchases Returns Account
Balance c/d			2,000		Michael	2,000







		Sales Returns a/c
Alan			1,000		Balance b/d	1,000

		Alan Account
Sales			8,000		Sales returns	1,000
					Bank	5,500
					Balance c/d	1,500
			8,000			8,000
Balance b/d			1,500

		Jennifer Account
Bank			2,000		Purchases	3,000
Balance c/d			1,000
			3,000			3,000
					Balance b/d	1,000

	Trial Balance as at 30September
					Debit	Credit
					€	€
Bank					9,000
Capital						20,000
Cash					250
Purchases returns						2,000
Motor vehicles					4,000
Rent					8,000
Office expenses					250
Sales						14,000
Purchases					18,000
Sales returns					1,000
Debtor - Alan					1,500
Creditor jennifer						1,000
Creditor - Michael						5,000
					42000	42000

Remember debtors will be presented in the statement of financial position as accounts receivable and creditors will be presented as accounts payable