Reference no: EM133206008
Question 1
Mr Ernest started a business in the month of June 2022. Ernest named his business Ernesteb Enterprises. In the month of June 2022, the following transactions took place.
June 1 Ernest took his money amounting to Kshs. 2,000,000.00 from his bank and deposited in Ernesteb Banks account for business use.
June 2 Mr. Ernest paid rent of Kshs.65,000 for his business using the business bank account.
June 2 Ernest bought furniture for Kshs. 300,000 for use in the rented house using his personal bank account. Ernest had no intention to claim the money from Ernesteb Enterprises.
June 3 Ernest bought goods worthy of Kshs. 1,000,000 from Viviane and paid 960,000 using a cheque after receiving a discount on the other amount
June 4 Ernest realized that some of the goods were worth Kshs. 230,000 that he had bought from Viviane on a cash basis were defective and returned them to Viviane and refunded the money to Ernesteb using cash.
June 4 Ernesteb made cash sales of Kshs. 1,200,000 and allowed the customer a discount of 10%.
June 6. The following additional stock was purchased on credit from the following Catherine 400,000, Martin Kshs. 300,000 and Waithima Kshs. 550,000
June 7 Mr. Ernest became broke and took Kshs. 200,000 for his personal use from Ernesteb bank account.
June 11 Made cash sales of 1,660,000 paid using a cheque
June 12. Withdrew cash from the Ernesteb bank account for business use amounting Kshs. 1,000,000
June 15 Paid the following using cash Catherine Kshs 380,000, Kshs. Martin 295,000, and Waithima Kshs.525,000 the rest of the amount was agreed as a discount for paying for goods on time.
June 19 Sold goods on cash to Blue Kshs. 219,000 and Bright Kshs. 410,000
June 22 Sold goods on credit to Brightstar amounting to Kshs. 490,678, and paid for the carriage as after sale service amount Kshs. 19,400 of the same good from Ernesteb to Brightstar
June 26 Brighstar all his dues via cheque
June 28 Purchased equipments of Kshs 330,136 using cheque from Equimap Suppliers,
June 30 Paid the following expenses Usind cash
- Commission to salespersons Kshs. 24,000
- Electricity bill Kshs. 30,000
- Postage Kshs. 35,000
- Taxi (transport bills) Kshs. 44,000
- Water and sewerage Kshs. 18,200
- Insurance Kshs. 14,500
Required.
Write Ledgers of different accounts