Preparation of Vendor's Account And Balance Sheet - SS3 Accounting Lesson Note
Question:
The following transactions were derived from the books of ABC TECH for the months of January and February. You are required to prepare in tabular form:
-
The vendor’s accounts
The balance sheet
|
Date |
Transaction
Amount
01/01/2023
Purchased inventory from XYZ Inc.
₦50,000
01/05/2023
Sold goods to DEF Co.
₦20,000
01/10/2023
Paid rent for the month
₦10,000
01/15/2023
Received payment from DEF Co.
₦20,000
01/20/2023
Purchased office supplies from GHI Corp.
₦5,000
01/25/2023
Paid utility bill for the month
₦3,000
02/01/2023
Purchased equipment from JKL Co.
₦100,000
02/05/2023
Sold goods to MNO Inc.
₦15,000
02/10/2023
Paid salary to employees
₦50,000
02/15/2023
Received payment from MNO Inc.
₦15,000
02/20/2023
Purchased furniture from PQR Co.
₦20,000
02/25/2023
Paid insurance premium for the year
₦12,000
Answer:
Vendor's Account for ABC TECH With XYZ Inc.
|
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
01/01/2023
Total
Purchased inventory
50,000
50,000
0
0
50,000
50,000
Vendor's Account for ABC TECH with DEF Co.
|
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
01/05/2023
01/15/2023
Total
Sold goods
Received payment
0
20,000
20,000
20,000
0
20,000
20,000
0
0
Vendor's Account for ABC TECH with GHI Corp.
|
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
01/20/2023
Total
Purchased office supplies
5,000
5,000
0
0
5,000
5,000
Vendor's Account for ABC TECH with JKL Co.
|
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
02/01/2023
Total
Purchased equipment
100,000
0
100,000
100,000
100,000
0
Vendor's Account for ABC TECH with MNO Inc.
|
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
02/05/2023
02/15/2023
Total
Sold goods
Received payment
0
15,000
15,000
15,000
0
15,000
15,000
0
0
Vendor's Account for ABC TECH with PQR Co.
|
Date |
Transaction
Debit (₦)
Credit (₦)
Balance (₦)
02/20/2023
Total
Purchased furniture
20,000
20,000
0
0
20,000
20,000
ABC TECH BALANCE SHEET
AS OF FEBRUARY 2023
|
Assets |
Amount
Liabilities
Amount
Inventory
Office Supplies
Equipment
Furniture
Insurance Prepaid
Total Assets
50,000
5,000
100,000
20,000
12,000
187,000
Accounts Payable
Salaries Payable
Rent Payable
Utility Payable
Total Liabilities
Equity
Total Liabilities and Equity
0
0
0
0
0
187,000
187,000