You are to show the journal entries necessary to record the following items: 2003 May 1 Bought a…

You are to show the journal entries necessary to record the following items:

2003 May

1 Bought a motor vehicle on credit from Motors Ltd for sh. 6,790.

3 A debt of sh. 34 owing from N Smart was written off as a bad debt. 8 Furniture bought by us for sh. 490 was returned to the supplier Wood Offices, as it was unsuitable. Full allowance will be given us.

12 we are owed sh. 150 by W Hayes. He is declared bankrupt and we received sh. 39 in full settlement of the debt.

14 we take sh. 45 goods out of the business stock without paying for them. 28 Some time ago we paid an insurance bill thinking that it was all in respect of the business. We now discover that sh. 76 of the amount paid was in fact insurance of our private house.

28 Bought Machinery sh. 980 on credit from Xerox Machines Ltd.