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 |