new business module

KEEPING RECORDS AND MANAGING FINANCES 119
when customers reimburse a credit, money goes out of the
business when the entrepreneur reimburses a credit.
1.3 Basic record-keeping exercise
The following box contains an exercise to practice booking the
various transactions discussed above. The transactions are
spread over two months, so the participants have to close their
cashbook sheet and carry forward the totals and balances from
one month to the next.
Record-keeping exercise (see Hand-outs 46, 47, 48, 49)
On 1 June, Lance opened a bicycle repair shop. What follows are the business transactions for
the months of June and July. Enter the transaction into Lance’s accounting system
(i.e. Cashbook, “Sales on credit” form and “Purchases on credit” form).
June 1
• Lance brings in $11,000 cash
• Money in the bank $35,000
• Purchase repair mat. on credit $15,000 from
Ferdy K.
• Transfer from bank to cash account $20,000
• Purchase of tools $25,000 paid in cash
• Purchase commercial licence $500
June 10
• Cash sales of bicycle material $4,000
• Cash for repair services $3,000
June 17
• Sale of repair services on credit $3,500 to
Tony R.
June 15
• Transfer cash to bank account $5,000
June 25
• Cash sales repair services $2,500
• Cash sales of bicycle material $6,000
July 1
• Sale of material on credit $1,000 to Tony R.
• Reimbursement credit $15,000 to Ferdy K.
• Sales repair services $3,300
July 8
• Sales of repair services $5,000
• Sales of material $7,500
July 19
• Transfer from cash to bank account $10,000
July 25
• Reimbursement credit $4,000 by Tony R.
July 31
• Purchase repair mat. on credit $20,000 from
Ferdy K.
The answers are provided below.