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Michael Kairu runs a general groceries shop in Mombasa. The following transactions relate to the shop for the month of June 2012.
June Transactions
Required:
Problem i. Record the above transaction in the appropriate books of original (including a three column cash book)
Problem ii. Post the account to relevant ledger account
Problem iii. Extract a trial balance as at 30th June 2012.
Problem iv. Explain the difference between a 'cash discount' and a 'trade discount'
Problem v. Explain how cash discounts and trade discounts are treated in the books of account.
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