Reference no: EM132981208

Question - Samuel operates a machine servicing business in Orchard Road. The following are transactions for the month of January 2021.

(a) Samuel started his business with $50,000 from his personal savings and $10,000 from a loan from his mom.

(b) A laptop of $3,300 was bought on credit from Song Co.

(c) Furniture of $21,000 was bought from Wood Enterprise. A personal cheque of $11,000 was issued as partial payment and the remainder to be paid 3 months later.

(d) Samuel received a cheque of $10,500 for servicing the machines of Telco Ltd.

(e) An invoice of $18,000 was sent to Lily Trading for servicing work completed.

(f) Issued a cheque to pay office rent $5,800.

(g) Received a cheque of $10,000 from Lily Trading as partial payment.

(h) Samuel withdrew $400 cash from the bank for office use.

(i) Paid Wood Enterprise for the remaining amount with a cheque.

(j) Took a bank loan of $100,000 to purchase a heavy-duty cleaning equipment for business purpose.

(k) Issued a personal cheque to pay salaries of $27,300 to his employees.

(l) Samuel withdrew $1,000 cash from the bank for personal use.

(m) Made a loan repayment of $20,000 by cheque.

Required -

(i) For each of the above transactions, write the accounts and amounts to be debited and credited.

(ii) Compute the amount of cash at bank as at 31 January 2021 of Samuel's business. (Workings are to be shown clearly).