2020 JYSS 3N POA EOY P2 Q4

2020 JYSS 3N POA EOY P2 Q4

4 Fatin is a grocery distributor. The following transactions took place in the month of May 2020.

2020 

May 1

Capital balance               $49 000 Cr

        

Cash at bank balance     $  3 000 Dr

         8

Fatin sold her personal laptop and deposited $4000 into the business’ bank account.

       13

Paid $500 by cheque for utilities.

       20

Cash sales of $8 000 to a customer Max. The money was deposited into the bank account.

       21

Withdrew $9 000 from the bank for office use.

       31

Withdrew $6 000 from the bank for personal use.

       31

Fatin made a profit of $20 000 for the year ended 31 May 2020.

REQUIRED

a. Post the relevant transactions related to the following ledger accounts. Bring down the balances to the following month.

[8]

i. Cash at bank account

ii. Capital account

b. What do you understand when the cash at bank account has a credit balance? In which section of the financial statement will it be shown?

[2]

[TOTAL 10]

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Bank overdraft

Current liability

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