Orldex Computers Ltd
You have been recently employed by the company in the role as junior accountant and were presented with the following transactions:
|
Date
|
Fol
|
Description
|
Amount
|
|
Mar-01
|
1
|
Transferred cash from personal account
|
45,000.00
|
|
2
|
2
|
Bought delivery vehicle on credit from Croydon Ford (payable by equal instalments over 36 months)
|
27,245.00
|
|
2
|
3
|
Paid license fees for trading licence
|
954.36
|
|
3
|
4
|
Bought stock for cash from HendredPeningtonComputers
|
6,578.00
|
|
4
|
5
|
Sold laptops on credit to MMM Ltd
|
2,500.00
|
|
5
|
6
|
Bought accessoriesfrom GHJ Supplies on credit
|
2,300.00
|
|
8
|
7
|
Bought printer from John Lewis for cash for use in the office
|
579.28
|
|
8
|
8
|
Bought desks and chairs from Major Office Supplies for cash
|
3,897.00
|
|
8
|
9
|
Rented photocopy machine from Xerox (amount per month)
|
287.45
|
|
9
|
10
|
Paid salaries for staff
|
12,368.54
|
|
9
|
11
|
Paid creditor invoices -GHJ Supplies
|
487.65
|
|
10
|
12
|
Paid rent
|
2,754.24
|
|
11
|
13
|
Withdrew cash from bank for petty cash
|
350.00
|
|
12
|
14
|
Invoiced customer Reggae Ltd
|
3,476.57
|
|
15
|
15
|
Bought testing equipment on credit from Electronix Ltd
|
15,467.00
|
|
15
|
16
|
Negotiated overdraft with Barclays bank
|
20,000.00
|
|
16
|
17
|
Purchased computers from Gell Computer Supplies on credit
|
9,457.45
|
|
17
|
18
|
Recorded depreciation on forklift
|
429.64
|
|
18
|
19
|
Wrote off damaged laptop
|
357.24
|
|
19
|
20
|
Received payment from MMM Ltd
|
845.00
|
|
19
|
21
|
Continued on next page . . . . . . . . . . . .
Deposited cash in bank from cash sales
|
5,245.36
|
|
19
|
22
|
Bought office supplies from Ryman's for cash
|
148.75
|
|
22
|
23
|
Paid VAT
|
879.45
|
|
23
|
24
|
Deposited Cash from savings on loan to the business
|
15,000.00
|
|
24
|
25
|
Paid DHL Freight Services for deliveries to customers
|
65.69
|
|
25
|
26
|
Paid for petrol for delivery vehicle
|
187.39
|
|
26
|
27
|
Paid for delivery vehicle repairs
|
587.85
|
|
26
|
28
|
Purchased additional office chairs from John Lewis for cash
|
1,568.75
|
|
29
|
29
|
Issued credit note to customer KSA Ltd for laptops returned (Previously sold for cash).
|
845.75
|
|
30
|
30
|
Paid utility bills to British Gas
|
628.76
|
|
31
|
31
|
Returned damaged laptops to Gell Computers Supplies for credit
|
897.47
|
|
31
|
32
|
Invoiced customer KSA Ltd for laptops
|
1,028.37
|
|
31
|
33
|
Provision for bad debt
|
654.24
|
|
31
|
34
|
Paid for postage stamps from petty cash
|
2.85
|
You are required to:
(a) Record the transactions in the books of prime entry.
(b) Transfer those entries to the ledger accounts.
(c) Prepare the trial balance.
(d) Construct the income statement for the month of March 2014
(e) Construct the balance sheet as at the end of March 2014.
(f) Write a 1000 word report to management explaining the importance of managing the 'working capital cycle' and why they should be vigilant to avoid 'overtrading'.References of your sources of information should be provided using the Harvard Referencing System.
Instructions
High marks will be gained whereclearunderstandingoftheaccounting