Understanding Bookkeeping

Accounting Test Question No 1:

Write up the asset and liability accounts to record the following transactions of Mr A and extract a Trial Balance as at 30 June 2007:

June 1. Started business with $3,500 in the bank

3. Bought office machinery by cheque $250

4. Bought furniture $350 on credit from Supplier XYZ

5. Bought goods for re-sale $500 by cheque

8. Sold some of the goods for $600 on credit to Customer A

10.Sold the remaining goods to Customer B

15.Received a cheque of $600 from Customer A

27. Paid Supplier XYZ by cheque for $350

Answer: Trial Balance=$4,500