Question

Luxon Shumba Attorneys commenced operations on 1 January 2015 by introducing E300,000 into the business bank account. Other transactions in the practice during January 2015 included the following: 2 ​Paid office rent by cheque to Lucia Malambe for January 2015​​E5 000 3​Debited Yoliswa Dlamini with fees in respect of a third party case​​E7 000 4 ​Paid membership fees to the Law Society by cheque for​​​E2 000 8 ​Themba Ndlondlo instructed Luxon Shumba Attorneys to issue ​summons against his wife for a divorce on the grounds of desertion and he paid in this regard E8,000. 10 ​Debited Mary Dlamini in respect of fees charged for a collection from ​Phepsiwe Mweli​​​​​​ E10 000 12​Bought books for a law library and paid by cheque ​​ E30 000 15​Bought a computer from Computronics Pty Limited on a credit basis ​for the amount of ​​​​​​ E15,000 20​Receive an account from Sheriff Michael Bhembe in respect of ​Luxon Shumba Attorney’s client Yoliswa Dlamini that amounted to E3 000 23​Receive a cheque from Yoliswa Dlamini in settlement of her account of ​E10 000 23​Luxon Shumba Attorneys paid the Sheriff Michael Bhembe the E3 000 as money had been received from Yoliswa Dlamini to settle her account. 24 ​Luxon Shumba Attorneys Billed Themba Ndlondlo for the Divorce matter an amount of E10 000 which represented final fees and the matter was closed on this date. 25​Paid the following by cheque:​ ​Water and electricity​​​​​​​E2 000 ​Telephone​​​​​​​E3 000 ​Salaries​​​​​​ E100 000 31​Withdraw from the business bank account of Luxon Shumba Attorneys for private use an amount of E10,000. 31​Received from Themba Mazibuko a cheque advance deposit of E20,000 for a criminal matter for which work commenced in February 2015. Required: a) As an Accountant of Luxon Shumba Attorneys, record the above transactions in the books of prime entry the month of January 2015. (15 Marks) b) Prepare the ledger entries in respect of the transactions in (a) for the month of January 2015 in the books of Luxon Shumba Attorneys and close off all relevant accounts where applicable for this month. (15 Marks) c) Extract a trial balance for Luxon Shumba Attorneys as at 31 January 2015.

241

likes
1204 views

Answer to a math question Luxon Shumba Attorneys commenced operations on 1 January 2015 by introducing E300,000 into the business bank account. Other transactions in the practice during January 2015 included the following: 2 ​Paid office rent by cheque to Lucia Malambe for January 2015​​E5 000 3​Debited Yoliswa Dlamini with fees in respect of a third party case​​E7 000 4 ​Paid membership fees to the Law Society by cheque for​​​E2 000 8 ​Themba Ndlondlo instructed Luxon Shumba Attorneys to issue ​summons against his wife for a divorce on the grounds of desertion and he paid in this regard E8,000. 10 ​Debited Mary Dlamini in respect of fees charged for a collection from ​Phepsiwe Mweli​​​​​​ E10 000 12​Bought books for a law library and paid by cheque ​​ E30 000 15​Bought a computer from Computronics Pty Limited on a credit basis ​for the amount of ​​​​​​ E15,000 20​Receive an account from Sheriff Michael Bhembe in respect of ​Luxon Shumba Attorney’s client Yoliswa Dlamini that amounted to E3 000 23​Receive a cheque from Yoliswa Dlamini in settlement of her account of ​E10 000 23​Luxon Shumba Attorneys paid the Sheriff Michael Bhembe the E3 000 as money had been received from Yoliswa Dlamini to settle her account. 24 ​Luxon Shumba Attorneys Billed Themba Ndlondlo for the Divorce matter an amount of E10 000 which represented final fees and the matter was closed on this date. 25​Paid the following by cheque:​ ​Water and electricity​​​​​​​E2 000 ​Telephone​​​​​​​E3 000 ​Salaries​​​​​​ E100 000 31​Withdraw from the business bank account of Luxon Shumba Attorneys for private use an amount of E10,000. 31​Received from Themba Mazibuko a cheque advance deposit of E20,000 for a criminal matter for which work commenced in February 2015. Required: a) As an Accountant of Luxon Shumba Attorneys, record the above transactions in the books of prime entry the month of January 2015. (15 Marks) b) Prepare the ledger entries in respect of the transactions in (a) for the month of January 2015 in the books of Luxon Shumba Attorneys and close off all relevant accounts where applicable for this month. (15 Marks) c) Extract a trial balance for Luxon Shumba Attorneys as at 31 January 2015.

Expert avatar
Rasheed
4.7
107 Answers
To assist you with this accounting task, I'll guide you through the steps you need to take to record the transactions in the books of prime entry, prepare the ledger entries, and extract a trial balance for Luxon Shumba Attorneys as at 31 January 2015. ### a) Books of Prime Entry for January 2015 The books of prime entry include the Cash Book, Sales Day Book, Purchases Day Book, Sales Returns Day Book, and Purchases Returns Day Book. Since we're dealing with a law firm, most entries will likely go into the Cash Book and the General Journal for non-cash transactions. Here's a summary of how the transactions might be recorded: 1. **Cash Book** (for cash and bank transactions) - Jan 1: Capital introduced E300,000 (Dr Bank, Cr Capital) - Jan 2: Rent paid E5,000 (Dr Rent Expense, Cr Bank) - Jan 4: Membership fees E2,000 (Dr Membership Fees Expense, Cr Bank) - Jan 8: Retainer received E8,000 (Dr Bank, Cr Client Retainers) - Jan 12: Books purchase E30,000 (Dr Library Expense, Cr Bank) - Jan 23: Receipt from Y. Dlamini E10,000 (Dr Bank, Cr Accounts Receivable) - Jan 23: Payment to Sheriff Bhembe E3,000 (Dr Client Expenses, Cr Bank) - Jan 25: Utilities E2,000, Telephone E3,000, Salaries E100,000 (Dr respective Expense accounts, Cr Bank) - Jan 31: Drawings E10,000 (Dr Drawings, Cr Bank) - Jan 31: Advance received E20,000 (Dr Bank, Cr Client Retainers) 2. **General Journal** (for non-cash and adjusting entries) - Jan 3: Fees earned E7,000 (Dr Accounts Receivable, Cr Revenue) - Jan 10: Fees earned E10,000 (Dr Accounts Receivable, Cr Revenue) - Jan 15: Purchase of computer E15,000 (Dr Equipment, Cr Accounts Payable) - Jan 20: Incur Sheriff's fees E3,000 (Dr Client Expenses, Cr Accounts Payable) - Jan 24: Billing T. Ndlondlo E10,000 (Dr Accounts Receivable, Cr Revenue) ### b) Ledger Entries for January 2015 You would then post these transactions to the respective ledger accounts. For instance: - **Bank Account** would have a starting balance of E300,000 and then would be debited or credited according to whether cash was received or paid out. - **Accounts Receivable** would include Yoliswa Dlamini, Mary Dlamini, and Themba Ndlondlo's fees. - **Accounts Payable** would include the computer purchase from Computronics Pty Limited and the account from Sheriff Michael Bhembe. - **Expenses Accounts** would include Rent, Membership Fees, Library, Utilities, Telephone, and Salaries. - **Capital, Drawings, and Retainers** accounts would also be updated. Each transaction would be posted on the date it occurred, with a corresponding debit and credit for each entry. ### c) Trial Balance as at 31 January 2015 The trial balance would list all the ledger accounts along with their final debit or credit balance to ensure that the total debits equal total credits. To extract the trial balance, you would: 1. List all the account names in the ledger. 2. Place the balance of each account in the debit or credit column, as appropriate. The sum of debits and credits should match, indicating that the books are balanced. Since these tasks require careful entry and double-checking, you would usually use accounting software or spreadsheets to track and manage these entries. If you need a more detailed walkthrough for any of these steps or help with specifics such as formatting ledger entries or balancing the trial balance, please let me know.

Frequently asked questions (FAQs)
What is the resultant vector when adding vector A (magnitude 12, direction 40°) to vector B (magnitude 8, direction 120°)?
+
Math question: "Graph the inequality y < 2x - 5 on the Cartesian plane within the domain -4 ≤ x ≤ 4. Identify the shaded region."
+
What is the variance of a dataset with values 5, 7, 8, 10, and 12?
+
New questions in Mathematics
What is the amount of interest of 75,000 at 3.45% per year, at the end of 12 years and 6 months?
Find the equation of the normal to the curve y=x²+4x-3 at point(1,2)
Exercise 4 - the line (AC) is perpendicular to the line (AB) - the line (EB) is perpendicular to the line (AB) - the lines (AE) and (BC) intersect at D - AC = 2.4 cm; BD = 2.5 cm: DC = 1.5 cm Determine the area of triangle ABE.
58+861-87
4.2x10^_6 convert to standard notation
What is the r.p.m. required to drill a 13/16" hole in mild steel if the cutting speed is 100 feet per minute?
You are planning to buy a car worth $20,000. Which of the two deals described below would you choose, both with a 48-month term? (NB: estimate the monthly payment of each offer). i) the dealer offers to take 10% off the price, then lend you the balance at an annual percentage rate (APR) of 9%, monthly compounding. ii) the dealer offers to lend you $20,000 (i.e., no discount) at an APR of 3%, monthly compounding.
If f(x,y)=6xy^2+3y^3 find (∫3,-2) f(x,y)dx.
prove that if n odd integer then n^2+5 is even
20% of 3500
What’s the slope of a tangent line at x=1 for f(x)=x2. We can find the slopes of a sequence of secant lines that get closer and closer to the tangent line. What we are working towards is the process of finding a “limit” which is a foundational topic of calculus.
Use a pattern to prove that (-2)-(-3)=1
TEST 123123+1236ttttt
In a company dedicated to packaging beer in 750 mL containers, a normal distribution is handled in its packaging process, which registers an average of 745 mL and a standard deviation of 8 mL. Determine: a) The probability that a randomly selected container exceeds 765 mL of beer b) The probability that the beer content of a randomly selected container is between 735 and 755 mL.
The mass of 120 molecules of X2C4 is 9127.2 amu. Identify the unknown atom, X, by finding the atomic mass. The atomic mass of C is 12.01 amu/atom
Translate to an equation and solve. Let x be the unknown number: What number is 52% of 81.
Emile organizes a community dance to raise funds. In addition to paying $300 to rent the room, she must rent chairs at $2 each. The quantity of chairs rented will be equal to the number of tickets sold. She sells tickets for $7 each. How much should she sell to raise money?
Find the symmetric point to a point P = (2,-7,10) with respect to a plane containing a point Po = (3, 2, 2) and perpendicular to a vector u = [1, -3, 2].
g(x)=3(x+8). What is the value of g(12)
15=5(x+3)