Neco 2018 Financial Accounting Question 4

Musa Ltd is a sole‑proprietorship that trades in electronic goods. The following information relates to the month of July: - Opening balances (1 July): * Cash – ₦40,000 (debit) * Bank – ₦60,000 (debit) * Inventory – ₦120,000 (debit) * Equipment – ₦80,000 (debit) * Capital – ₦250,000 (credit) * Creditors – ₦30,000 (credit) * Debtors – ₦45,000 (debit) - Transactions during July: 1. 4 July – Purchased inventory on credit for ₦70,000. 2. 6 July – Sold goods costing ₦50,000 for ₦85,000 cash. 3. 10 July – Paid ₦20,000 cash to creditors. 4. 12 July – Received ₦30,000 from debtors. 5. 15 July – Paid salaries of ₦18,000 cash. 6. 18 July – Bought a delivery van for ₦45,000 cash. 7. 22 July – Sold goods on credit for ₦90,000 (cost of goods sold ₦55,000). 8. 25 July – Paid electricity expenses of ₦5,000 cash. 9. 28 July – Adjusting entry: depreciation on equipment at 10% per month. 10. 30 July – Adjusting entry: outstanding salaries of ₦2,000 (not yet paid). Using the above data, answer the following: