Example

Tina starts business on 1 January 2012. The following transactions take place in her first
month of trading.
1.1.2012 She invests $65,000 into a business.
2.1.2012 She purchases $8,000 worth of goods for re-sale on credit.
7.1.2012 She sells a quarter of the goods for $4,000 cash.
8.1.2012 She issues a cheque to pay for half of the goods she received on credit.
14.1.2012 She pays her insurance for January by issuing a cheque for $75.
15.1.2012 She sells her remaining goods for $12,000 on credit.
16.1.2012 She purchased goods for re-sale on credit for $10,000.
18.1.2012 She purchases some computer equipment for $3,000 cash.
20.1.2012 She pays business rent for January by cheque for $150.
21.1.2012 She sells half her goods for $10,000 cash.
25.1.2012 She withdraws $100 from the bank and put it into the petty cash tin (this is
cash in hand).
31.1.2012 She purchases some stationery worth $30 taking money from the petty
cash tin.

Required:
For the first month of trading prepare:
1. The journal entries (recording the dual effect) for each transaction.
2. The ledger (T – Accounts) accounts.