Assume that a manual or paper system of processing financial transactions is in use by ABC Ltd. Remember to use folio columns when posting the transactions.
Required: Post the financial transactions in the month of January 2018 to the relevant ledgers.
Suggested answer to practice activity 22.2
The postings should be as follows:
January 4, 2018: The procurement unit of ABC Ltd went to buy goods from Betty stores in the market amounting to ₦380,000. The goods were paid for by cash.
January 5, 2018: A supplier, Apa Ltd, of goods worth ₦300,000 was paid by ABC Ltd. The supplier had sold the goods to ABC Ltd on credit in the month of September, 2017.
January 7, 2018: A credit customer, Allen, who bought goods amounting to ₦850,000 in the month of October, 2017 paid his bill in cash. On the same day, another credit customer, Warren, paid his bill amounting to ₦500,000 in cash.
January 7, 2019: Two employees of ABC Ltd travelled to the far end of town for training. No official vehicle was provided and the cost of transportation was ₦4,000 for both employees.
January 8, 2019: Two employees of ABC Ltd attended a seminar by Capital Consulting Ltd. The cost of the seminar was ₦60,000 for two employees.
January 19, 2019: A supplier, Gifted Ltd, of goods worth ₦380,000 was paid by ABC Ltd. The supplier was paid by cheque.
January 21, 2019: Goods worth ₦350,000 were sold to a customer, Bill, who paid by crediting the bank account of ABC Ltd with No Limit Bank Plc.
January 29, 2019: The employees of ABC Ltd were paid salary amounting to ₦500,000 through the bank.
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