Mwananchi traders had the following account balances as at 1^st January 2013. Cash Ksh 2,900 Bank Ksh 65,400

      

Mwananchi traders had the following account balances as at 1^st January 2013.
Cash Ksh 2,900
Bank Ksh 65,400
Debtors accounts: Creditors accounts:
Benson Ksh 12,000 Unity Ltd Ksh 6,000
Nathan Ksh 28,000 ABC Ltd Ksh 44,000
Dennis Ksh 4,000 Riper Ltd Ksh 10,000
The following transactions also took place in the month of January;
02/01/2013: Benson cleared his account by cheque after deducting 8% cash discount.
08/01/2013: Mwananchi traders paid Riper Ltd by cheque less 5% cash discount.
11/01/2013: Made drawings for Ksh 10,000 from the bank for business use.
16/01/2013: Nathan paid us his amount due by cash after deducting 3% discount allowed.
25/01/2013: Mwananchi traders paid office expenses in cash for Ksh 9,200.
28/01/2013: Dennis settled his account by cash.
29/01/2013: Paid Unity Ltd the amount due by cheque.
30/01/2013: Paid ABC Ltd partly Ksh 40,000 by cheque.
Prepare sales, purchases and general ledger books for the above information.

  

Answers

---

---

Kavungya answered the question on August 17, 2021 at 08:56

Next: The following details belong to JJ Wholesalers. Prepare a two column cashbook for the month ending March, 2013. 01/03/2013: Started business with capital inform of cash...
Previous: Michael Kamau runs a general groceries shop in Nairobi. The following transactions relate to the shop for the month of September 2013. Sept 1st : Cash...

View More Financial Accounting Questions and Answers | Return to Questions Index

Learn High School English on YouTube

Related Questions

---

• The following details belong to JJ Wholesalers. Prepare a two column cashbook for the month ending March, 2013. 01/03/2013: Started business with capital inform of cash...(Solved)
  

  The following details belong to JJ Wholesalers. Prepare a two column cashbook for the month ending March, 2013.
  01/03/2013: Started business with capital inform of cash Sh. 100,000.
  02/03/2013: Paid rent by cash Sh 10,000.
  03/03/2013: Received Loan of Sh 500,000 via cheque from Barclays bank.
  04/03/2013: Paid Kenya Motors Sh 65,000 by cheque.
  05/03/2013: Made Cash sales of Sh 98,000.
  07/03/2013: Nathan a debtor paid us by cheque Sh 62,000.
  09/03/2013: Paid Bakes Ltd in cash Sh 22,000.
  11/03/2013: Made cash sales paid directly into the bank for Sh 53,000.
  15/03/2013: Gilbert paid us in cash Sh 65,000.
  16/03/2013: Took Sh 50,000 out of the cash till and deposited it into the bank account.
  19/03/2013: Made loan repayment of Sh 100,000 by cheque to Barclays Bank
  22/03/2013: Made cash sales paid directly into the bank for Sh 66,000.
  26/03/2013: Paid motor expenses by cheque Sh 12,000.
  30/03/2013: Withdrew Sh 100,000 cash from the bank for business use.
  31/03/2013: Paid wages in cash for Sh 97,000.

  Date posted: August 17, 2021.  Answers (1)

• What are Discounts?(Solved)
  

  What are Discounts?

  Date posted: August 17, 2021.  Answers (1)

• Explain the types of cash books.(Solved)
  

  Explain the types of cash books.

  Date posted: August 17, 2021.  Answers (1)

• Explain a Cash Book.(Solved)
  

  Explain a Cash Book.

  Date posted: August 17, 2021.  Answers (1)

• Using a diagram, illustrate the Classification of Accounts.(Solved)
  

  Using a diagram, illustrate the Classification of Accounts.

  Date posted: August 17, 2021.  Answers (1)

• Prepare journal entries to record the following transactions that took place in the month of February, 2013: 01/02/2013: Bought office fittings on credit from Heritage Ltd...(Solved)
  

  Prepare journal entries to record the following transactions that took place in the month of February, 2013:
  01/02/2013: Bought office fittings on credit from Heritage Ltd for Ksh 77,000.
  05/02/2013: Goods costing Ksh 34,000 were taken out of the business without paying for them.
  08/02/2013: Ksh 6,800 of the goods taken by us on 5th February is returned back into the business stock by us and no money is taken in exchange for the return.
  13/02/2013: Johnson owes us Ksh 26,400 and he is unable to pay his debt so we agree to take some of his computers worth the same amount to cancel his debt.
  17/02/2013: Paid Heritage Ltd Ksh 50,000 by cheque in partial settlement of the amount due.
  25/02/2013: A debt owing to us by Hicks of Ksh 13,450 is written off as a bad debt.
  28/02/2013: Bought equipment on credit from ART Ltd for Ksh 31,500.

  Date posted: August 17, 2021.  Answers (1)

• Record the following entries in a journal for the year 2011. - On May 1^st bought a vehicle on credit from Kenya motors for Kshs 96,000. -...(Solved)
  

  Record the following entries in a journal for the year 2011.
  - On May 1^st bought a vehicle on credit from Kenya motors for Kshs 96,000.
  - On May 3^rd a debt of Kshs 6,000 owing from John was written off as a bad debt.
  - On May 8^th credit purchase of furniture for 12,500 was returned to the supplier BB ltd as it was unsuitable and full allowance will be given.
  - On May 12^th a Ken a debtor who owed us Kshs 4,000 was declared bankrupt and we received Kshs 1050 in full settlement of the debt.
  - On May 14^th we take goods costing Kshs 3,500 out of the business stock without paying for them.
  - On May 28^th we discovered that Kshs 1,500 of the insurance paid, belonged to private use.
  - On May 30^th bought machinery for Kshs 25,000 on credit from Electronics ltd.

  Date posted: August 17, 2021.  Answers (1)

• Describe a General Journal.(Solved)
  

  Describe a General Journal.

  Date posted: August 17, 2021.  Answers (1)

• The following transactions relate to Jasho Enterprises. Enter the transactions in the relevant books of original entry and show the postings made in the general...(Solved)
  

  The following transactions relate to Jasho Enterprises. Enter the transactions in the relevant books of original entry and show the postings made in the general ledger.
  2013
  1/10/2013 Credit purchases from: Martin Sh. 38,000; Mark Sh. 5,000; Mike Sh. 1,060.
  3/10/2013 Credit sales to: Rick Sh. 5,100; Raps Sh. 2,460; Rachael Sh. 3,560.
  5/10/2013 Credit purchases from: Matthew Sh. 2,000; Mabel Sh.1,800 ; Marshal Sh. 4,100; Michael Sh.660.
  8/10/2013 Credit sales to: Stephen Sh. 3,070; Stella Sh. 2,500; Samuel Sh. 1,850.
  12/10/2013 Returns outwards to: Mark Sh. 300; Mike Sh. 160.
  14/10/2013 Returns inwards from: Raps Sh. 180; Rachael Sh. 220.
  20/10/2013 Credit sales to: Raps Sh. 1,880; Shakes Sh. 3,100; Slim Sh. 4,200.
  24/10/2013 Credit purchases from: Peter Sh. 5,500; Patrick Sh. 9,000.
  31/10/2013 Returns inwards from: Raps Sh. 270; Rick Sh. 300.
  31/10/2013 Returns outwards to: Mabel Sh. 130; Michael Sh. 110.

  Date posted: August 17, 2021.  Answers (1)

• Describe a Return Outwards Journal.(Solved)
  

  Describe a Return Outwards Journal.

  Date posted: August 17, 2021.  Answers (1)

• Describe a Return Inwards Journal.(Solved)
  

  Describe a Return Inwards Journal.

  Date posted: August 17, 2021.  Answers (1)

• Describe a Purchases Journal.(Solved)
  

  Describe a Purchases Journal.

  Date posted: August 17, 2021.  Answers (1)

• You are to enter up the sales journal from the following details. Post the items to the relevant accounts in the sales ledger and then...(Solved)
  

  You are to enter up the sales journal from the following details. Post the items to the relevant accounts in the sales ledger and then show the transfer to the sales account in the general ledger.
  

  Date posted: August 17, 2021.  Answers (1)

• Describe a Sales Journal.(Solved)
  

  Describe a Sales Journal.

  Date posted: August 17, 2021.  Answers (1)

• Define the term Journalizing.(Solved)
  

  Define the term Journalizing.

  Date posted: August 17, 2021.  Answers (1)

• Explain a Credit note.(Solved)
  

  Explain a Credit note.

  Date posted: August 17, 2021.  Answers (1)

• Explain a Purchase Invoice.(Solved)
  

  Explain a Purchase Invoice.

  Date posted: August 17, 2021.  Answers (1)

• What is a Sales Invoice?(Solved)
  

  What is a Sales Invoice?

  Date posted: August 17, 2021.  Answers (1)

• State the steps which the accounting cycle comprises of.(Solved)
  

  State the steps which the accounting cycle comprises of.

  Date posted: August 17, 2021.  Answers (1)

• The following transactions relate to Kencom Enterprises. You are required to complete the double entry in the relevant accounts for the month of May, 2013.(Solved)
  

  The following transactions relate to Kencom Enterprises. You are required to complete the double entry in the relevant accounts for the month of May, 2013.
  
  01/05/2013: Started business by depositing Ksh 200,000 in the bank.
  02/05/2013: Purchased goods worth Ksh 17,500 on credit from MM Wholesalers.
  03/05/2013: Bought Equipment for Ksh 15,000 paying by cheque.
  05/05/2013: Sold goods for cash worth Ksh 27,500.
  06/05/2013: Bought goods on credit worth Ksh 11,400 from Pp Shah.
  10/05/2013: Paid rent by cash Ksh 1,500.
  12/05/2013: Bought stationery for Ksh 2,700, paying in cash.
  18/05/2013: Goods returned to MM Wholesalers were amounting to Ksh 2,300.
  21/05/2013: Received rent by cheque for Ksh 500.
  23/05/2013: Sold goods on credit to Unity for Ksh 7,700.
  24/05/2013: Bought a motor vehicle paying by cheque Ksh 30,000.
  30/05/2013: Paid the wages by cash amounting to Ksh 11,700.
  31/05/2013: The owner made cash drawings for personal use worth Ksh 4,400.

  Date posted: August 17, 2021.  Answers (1)