Neco 2019 Financial Accounting Question 3

ABC Manufacturing Ltd. carried out the following transactions during the month of March: 1. Purchased raw material worth ₦150,000 on credit from XYZ Suppliers. 2. Paid ₦45,000 cash to XYZ Suppliers as part of the outstanding balance. 3. Returned defective raw material costing ₦20,000 to XYZ Suppliers and received a credit note. 4. Received a 2% cash discount on the remaining balance payable to XYZ Suppliers and settled the balance in cash. 5. Sold finished goods for ₦250,000 on credit to customers. The cost of goods sold was ₦160,000. 6. Paid salaries amounting to ₦30,000 in cash. 7. Recorded depreciation of machinery at ₦12,000 for the month. Using the information above, answer the following: a) Record the appropriate journal entries for each of the above transactions in the Books of Original Entry. b) Post the entries to the relevant ledger accounts (Raw Materials, Purchases, Sales, Cost of Goods Sold, Salaries, Depreciation, Cash, and XYZ Suppliers). Show the balances of each ledger account after posting. c) Prepare a trial balance as at 31 March based on the ledger balances obtained.