Question Given the transactions below prepare t... - SS3 Accounting Preparation of Purchase of Business In Purchaser’s Books: Journal Entry Question

Question:

Given the transactions below, prepare the purchase of a business in the purchaser’s books; journal entry for James Tool Shop.

1. Purchased hand tools and power tools on credit for ₦50,000 from ABC Tools.

2. Sold saws, hammers and wrenches for cash for ₦70,000 to XYZ Contractors.

3. Paid rent for the store for ₦20,000 in cash.

4. Received payment for the sale of goods on credit for ₦30,000 from DEF Builders.

5. Purchased additional inventory for ₦100,000 on credit from GHI Distributors.

6. Paid salaries to employees for ₦40,000 in cash.

7. Made a loan repayment of ₦10,000 in cash to JKL Bank.