Alhaji Mohammed Garuba started business January 1, 1991 with a capital of N 16,000….

Alhaji Mohammed Garuba started business January 1, 1991 with a capital of N16,000. The following transactions were carried out during the month of January:

1. Purchased furniture by cash N2,400

2. Purchased stationery N200 cash

3. Purchased goods by cash N3,500

4. Purchased goods on credit from Mallam Nagogo N5,000

15. Sold goods for cash N6,000

18. Sold goods to Charlotte Umedo on credit N2,400

20. Paid advertisement expenses N200 cash

25. Paid Mallam Nagogo N3,500 cash being part of settlement of goods purchased

28. Paid rent in cash N300

31. Paid salaries and wages N600 cash.

Required: You are required to write up ledger Accounts recording the above transactions and extract a Trial Balance.

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