EXAMPLE 1

George commences business on 1 April 2006. The following transactions take place in his first two
weeks of trading.
1 April He invests $50,000 in to a business
1 April He purchases $5,000 worth of goods on credit
2 April He sells half of the inventory for $6,000 cash
5 April He issues a cheque to pay for the goods he received on credit
4 April Pays his rent for April of $450 by cheque
7 April He sells his remaining stock for $6,000 on credit
10 April Purchased goods on credit for $7,000
14 April He purchases a delivery van for $7,000 cash
EXAMPLE 2
Tina starts her business on 1 January 2007. The following transactions take place in her first month of
trading:
1 Jan She invests $65,000 in to the business
2 Jan She purchases $8,000 worth of goods on credit
2 Jan She sells a quarter of the inventory for $4,000 cash
3 Jan Issues a cheque to pay for half of the goods she received on credit
14 Jan Pays her insurance for January by issuing a cheque for $75
15 Jan She sells the remaining inventory for $12,000 on credit
16 Jan Purchases inventory at a cost of $10,000 on credit
18 Jan Purchases some office equipment for $3,000 cash
20 Jan Pays her rent for January by cheque $150
21 Jan Sells half her inventory for $10,000 cash
25 Jan Withdraws $100 for petty cash
31 Jan Purchases office supplies worth $30 from petty cash