On 7th Jan 2012, he converted for the business his machinery bought eight years ago for N18,000 batt worth N45,000 on the date of converting it for business use. d 12th Jan: 2012 obtained a loan of N20,000 from Jakotade at an interest rate of 25% per annum. the loan was given inform of Cash N25,000 and balance in Cheque. You are required to a. Identify the day book in which each of the above transaction will be recorded. b. Record the transactions in the relevant day books c. Transfer the entries into the ledgers d. Balance the ledger and bring down the balances as at 20th Jan. 2012.

Economics
On 7th Jan 2012, he converted for the business his machinery bought eight years ago for N18,000 batt worth N45,000 on the date of converting it for business use. d 12th Jan: 2012 obtained a loan of N20,000 from Jakotade at an interest rate of 25% per annum. the loan was given inform of Cash N25,000 and balance in Cheque. You are required to a. Identify the day book in which each of the above transaction will be recorded. b. Record the transactions in the relevant day books c. Transfer the entries into the ledgers d. Balance the ledger and bring down the balances as at 20th Jan. 2012.

ScanSolve AI Answer

Here are the journal entries for the remaining transactions, followed by the identification of day books, and then the ledger accounts with balances.

3 (b) Continued Step 1: Record the conversion of personal machinery for business use. Machinery (asset) increases, so debit Machinery Account. Owner's Capital (equity) increases, so credit Owner's Capital Account. The value used is the current market value.

Step 2: Record the loan obtained from Jakotade. Cash (asset) increases, so debit Cash Account. Bank (asset) increases, so debit Bank Account. Loan from Jakotade (liability) increases, so credit Loan from Jakotade Account.

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  1. Here are the journal entries for the remaining transactions, followed by the identification of day books, and then the ledger accounts with balances.
  2. 3 (b) Continued Step 1: Record the conversion of personal machinery for business use.
  3. Machinery (asset) increases, so debit Machinery Account.
  4. Owner's Capital (equity) increases, so credit Owner's Capital Account.
On 7th Jan 2012, he converted for the business his machinery bought eight years ago for N18,000 batt worth N45,000 on the date of converting it for business use. d 12th Jan: 2012 obtained a loan of N20,000 from Jakotade at an interest rate of 25% per annum. the loan was given inform of Cash N25,000 and balance in Cheque. You are required to a. Identify the day book in which each of the above transaction will be recorded. b. Record the transactions in the relevant day books c. Transfer the entries into the ledgers d. Balance the ledger and bring down the balances as at 20th Jan. 2012.
Economics

This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.

ScanSolve AI Answer
Here are the journal entries for the remaining transactions, followed by the identification of day books, and then the ledger accounts with balances. 3 (b) Continued Step 1: Record the conversion of personal machinery for business use. Machinery (asset) increases, so debit Machinery Account. Owner's Capital (equity) increases, so credit Owner's Capital Account. The value used is the current market value. Step 2: Record the loan obtained from Jakotade. Cash (asset) increases, so debit Cash Account. Bank (asset) increases, so debit Bank Account. Loan from Jakotade (liability) increases, so credit Loan from Jakotade Account. |l|l|r|r| \