Reference no: EM132738198
Assignment: On 1st January 2018 Kijana Raburu commenced a retail business with Sh.270,000 in cash, a second-hand car worth
Sh. 252,000 and an office desk valued at Sh. 18,000
The following transactions were recorded during the month of January:
Dates:
1 Opened bank current account with Sh.180,000 cash
1 Paid office rent by cheques Sh.9,000
3. Bought goods for resale and paid by cheques Sh.67,500
4. Cash sales Sh.43,200, paid wages Sh.3,375 in cash
5. Sold goods to Alfred on credit Sh.36,000
8. Bought goods worth Sh.63,000 on credit from Thika Wholesalers, less 10% trade
Discount.
11 Cash sales Sh.18,000
11 Paid cash into bank Sh.13,500
13 Cash purchases Sh.40,500
15 Sold goods on credit to Malava retailers worth Sh.72,000 less 10% trade discount
17 Received cash Sh.9,000 from Alfred on account
18 Sold goods on credit to Kitui traders worth Sh.78,300
19 Kitui traders returned goods worth Sh.400 for being damaged and were given a credit
Note.
20 Returned goods to Thika wholesalers Sh.900 and received a credit note
20 Drew cheques for office use Sh.9,000
21 Cash purchases Sh.34,020
21 Purchased goods on credit from Winam enterprises Sh.81,000
22 Returned goods to Winam enterprises, worth Sh.4,500 and received a credit note
24 Cash sales Sh.27,000, banked Sh.18,000
25 Purchased duplicating paper, pens, pencils, envelopes for office use all valued at
Sh.7,200 cash
26 Alfred sent a cheques in full settlement of his account after having deducted 5% cash Discount
27 Settled Thika wholesalers account by cheques less Sh.990 cash discount
28 Paid electricity bill Sh.1,125 in cash
29 Settled water bills by cheques Sh.1,530
30 Drew cheques for personal use Sh.9,000
30 Received cash from Kitui traders Sh.13,500 on account
30 Paid Winam enterprises Sh.36,000 on account by cheques
31 Paid motor repairs expenses Sh.15,300 in cash
31 Banked cash Sh.45,000
31 Bought two Dell typewriters for Sh.81,000 by cheques.
Required: (Questions)
i) Enter the above transactions into their respective books of original entry including a three column cash book
ii) Post entries into the ledger accounts, balance off the ledger accounts
iii) Draw up atrial balance