Q and A for the topic: General

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.