Practice Activity 5.1 Financial transactions

Highlight any ten financial transactions that could occur in a profit-making organisation. State the dates that the transactions could occur.

Suggested answers to practice activity 5.1

i. A business owner introduces ₦356,000 cash into the business on 3 March 2017.

ii. On 10 March 2017, the business bought inventory from the market for ₦57,000. This amount was paid in cash.

iii. The business sold inventory for ₦35,000 on 15 March 2017.

iv. The business bought furniture for ₦36,000 on 16 March 2017.

v. The owner paid a salary amounting to ₦10,000 to himself on 31 March 2017.

vi. On 20 March, the business was supplied inventory amounting to ₦38,000 by Supplier Enterprises, and the business did not pay cash for the supply.

vii. Fuel expenses of ₦5,200 were paid by cash on 31 March 2017

viii.On 31 March 2017, the owner’s uncle, Mr. Give, gave the business a loan of ₦40,000. The loan was provided by cheque.

ix. The business paid cash of ₦110,000 into its bank account, which was opened on 30 March 2017.

x. The electricity bill of ₦8,800 was paid by bank transfer on 31 March 2017.