1
You are to show the journal entries necessary to record the following items which occurred
in 2008:
(a) March 1 Bought a van on credit from Fring’s Wheels for £7,200.
(b) March 3 A debt of £90 owing from A Collins was written off as a bad debt.
(c) March 8 Office equipment bought by us for £430 was returned to the supplier Comfort Ltd, as
it was faulty. Full allowance will be given to us.
(d) March 12 We are owed £491 by J Smith. He is declared bankrupt and we received £49 in full
settlement of the debt.
(e) March 14 We take goods costing £73 out of the business stock without paying for them.
(f
) March 28 Some time ago we paid an insurance bill thinking that it was in respect of the business.
We now discover that £98 of the amount paid was in fact insurance of our private house.
(g) 2008 March 28 Bought two PCs for £1,186 on credit from Findler Brothers.