Course Work Assignment 1

Date Given:	30-January-2012			      Date Due:	      13-February-2012
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Best Value Wholesale Limited which is located at 28 Main Street, Ocho Rios, St. Ann is owned and operated by John Mart who is assisted by his team of workers.  The company purchased and sold goods on a cash as well as credit basis.  All deposits are made directly to the bank account number 812325879 at the Ocho Rios Branch of the National Commercial Bank.

The following information relating to the operations of the business for the period May 1 to May 31, 2011 were presented:

The assets and liabilities on May 1, 2011 were:



The following transactions took place during May 2011:

May	1	Transfer $90 000 of the opening cash balance into the business bank
account to reduce the overdraft.
2 Cash sales lodged directly into the bank account $80 000
3 Sold goods on credit to Mark Brown of 15 Warner’s Street, Port Maria, Invoice #256:
400 bags flour @ $2500 per bag
200 bags rice @ $1050 per bag
150 cases Betty Milk @ $2 000 per case

Less 5% Trade Discount

	5	We received a cash from Andrew Cox for $45 000 as final settlement to
his account after allowing him a discount of $5000.

7	Paid Insurance by cheque, $15 500 to General Insurance Co. Ltd
8	Paid rent by cash to Tom Finny Agency $10 000

10 Bought goods on credit from Jamaica Wholesale Limited, 10 Market
Street, Kingston, Invoice #456:

	500 Bags flour @ $900 per bag
	250 Bags rice at @800 per bag
	200 Cases Betty Milk @ $1 500 per case

	Less 10% Trade Discount

11	Sold goods and received $50 000 by cash and $45 000 by cheque

	12	Cash purchases $52 000

12	Paid wages by cash to Stacey Richards $5 000

13	Cash sales lodged directly into the bank $50 000

14	Bought goods by cheque, $120 000 from Jamaica Wholesaler

	20	We returned the following items to Jamaica Wholesale Limited, a debit 			note #125 was issued – items were damaged
		2 cases milk
		5 bags rice

24	We paid Chin’s Wholesale $54 000 by cheque

27 We paid interest accrued on bank loan by cheque $15 000

	28	Mark Brown returned the following items to us, a credit note #478 was 			issued – items damaged.

			5 cases betty milk @ $2 000, less 5% trade discount.

28 Paid Electricity Bill to Jamaica Public Service Co. Ltd by cheque $14 500

29 The owner, Tamar Best took $25 000 cash from the business for her personal use

	30	The remaining cash of hand was deposited in the bank with the exception 			of $2 500.


YOU ARE REQUIRED TO:
a)	Prepare Four (4) source documents (receipt, invoice, banking document, and any 	other source document).                                                                               8 marks
b)	Prepare the books of original entries                                                          30 marks
c)	Prepare the sales, purchases, and general ledgers                                      24 marks
d)	Prepare a trial balance                                                                                12 marks
e)	Prepare the trading, profit and loss account and the balance sheet            20 marks
f)	Neat and tidy presentation                                                                            6 marks
								                    Total 100 marks