Preparation of Cash/Bank Account, Share Premium Account, Share Discount Account, Share Capital Accounts - SS2 Accounting Past Questions and Answers - page 1
Question:
The following transactions were gathered from the trial balance for LIMICO Ltd. for the year ended December 2022. You are required to prepare:
-
cash/bank account
-
share premium account
-
share discount account
-
share capital accounts;
-
preference shares account
-
Ordinary share capital account.
TRIAL BALANCE OF LIMICO SOAP Ltd. FOR THE YEAR ENED DECEMBER, 2022
|
Account Name |
Debit (₦) |
Credit (₦) |
|
Cash |
20,000 |
|
|
Bank |
50,000 |
|
|
Sales |
100,000 |
|
|
Rent Expense |
5,000 |
|
|
Salaries Expense |
15,000 |
|
|
Supplies |
2,000 |
|
|
Advertising Expense |
3,000 |
|
|
Utilities Expense |
4,000 |
|
|
Total |
99,000 |
100,000 |
Answer:
Cash/Bank Account:
|
Account |
Debit (₦) |
Credit (₦) |
|
Cash Bank |
20,000 50,000 70,000 |
|
Share Premium Account:
|
Account Share Premium Share Premium |
Debit (₦) |
Credit (₦) |
|
5,000 10,000 15,000 |
Share Discount Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Share Discount Total |
1,000 1,000 |
Share Capital Accounts
|
Account |
Debit (₦) |
Credit (₦) |
|
Ordinary Shares Ordinary Shares Ordinary Shares Preference Shares Total |
10,000 5,000 7,000 12,000 34,000 |
Preference Shares Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Preference Shares Total |
12,000 12,000 |
Ordinary Share Capital Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Ordinary Shares Ordinary Shares Ordinary Shares Total |
10,000 5,000 7,000 22,000 |