The following transactions occurred in Ama Enterprises during the period ended 31 July 2019. The Enterprise is owned by Amaka, who started business on 30 June 2019.
2019
1 July: Amaka Enterprises opened a bank account with ₦350,000 for the business.
2 July: Amaka bought inventory from M. Mose, Iyore, Omonimose for ₦15,000, ₦14,500, and ₦14,800, respectively. The amounts were paid from the bank account of Through Ama Enterprises.
3 July: Amaka sold inventory to Ibiekan, Omoni for ₦18,000, and ₦29,000 respectively. The customers paid cash for the inventory.
13 July: Amaka sold inventory to Nwa, Omo for ₦26,000, and ₦49,000 respectively. The customers paid by transfer to the Enterprise's bank account using the Enterprise's POS machine. The transaction was successful.
19 July: Amaka paid an electricity bill of ₦1,350 through the bank.
29 July: Monthly rent for business space amounting to ₦3,800 was paid through the bank to the premises' owner.
29 July: Salary was paid through the bank to the administrative staff amounting to ₦28,900.
Required:
i. Prepare the accounts for July 2019.
ii.Balance the accounts for July 2019.
Suggested answers to practice activity 5.7
i. Accounts for the month of July 2019:
ii. Balancing of accounts for the month of July 2019:
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