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Question 5.1: The following is a summary of the transactions of Hair by Fi...

The following is a summary of the transactions of Hair by Fiona Middleton hairdressing business of which Fiona is the sole proprietor.
1 January        Put in cash of $2,000 as capital
Purchased brushes and combs for cash $50
Purchased hair driers from Gilroy Ltd on credit $150
30 January      Paid three months rent to 31 March $300                            Collected and paid in takings $600
31 January       Gave Mrs Sullivan a perm, highlights etc on credit $80
Show the transactions by means of journal entries.

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journal
$ $
1 jonuary DEBIT cash at bank 2.000
CREDIT Fiona Middleton – capital account 2.000
initial capital introduced
1 jonuary DEBIT Brushes and combs account 50
CREDIT cash at bank 50
the purchase of cash of brushes and combsas non current assets
1 jonuary DEBIT Hair dryer account 150
CREDIT sundry accounts payable * 150
the purchase on credit of hair driers as non – current assets
30 jonuary DEBIT Rent account 300
CREDIT cash at bank 300
the payment of rent to 31 march
30 jonuary DEBIT cash at bank 600
CREDIT sales account 600
cash takings
31 jonuary DEBIT Trade accounts receivable 80
CREDIT sales account 80
The provision of a hair – do on cedit

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