The trial balance for XYZ ltd at 31 December 2013 showed a difference of Sh. 8,000, being a shortage on the debit side. Show the...
(Solved)
The trial balance for XYZ ltd at 31 December 2013 showed a difference of Sh. 8,000, being a shortage on the debit side. Show the journal entries to correct the following errors and prepare a suspense account.
1. Extra capital of Sh. 5,000 paid into the bank had been credited to sales account.
2. Sales account had been overcast by Sh. 9000
3. Insurance expense was undercast by Sh. 4,000
4. Private rent of Sh. 1,900 had been debited in the rent account.
5. Cash of Sh. 5000 received from a debtor was entered in the cash book only.
6. A credit purchase of Sh. 5,900 was entered in the books as Sh. 9,500
Date posted:
August 17, 2021
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Answers (1)
Describe the Petty Cash Book and the Imprest system of Accounting.
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Describe the Petty Cash Book and the Imprest system of Accounting.
Date posted:
August 17, 2021
.
Answers (1)
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...
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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 in hand Sh. 31,400; Bank balance Sh. 50,800; Capital account Sh. 82,200
Sept 3rd: Bought goods in cash for Sh. 8,200
Sept 4th: Purchased goods on credit from Jambo ltd for Sh. 11,600 less 10% trade discount.
Sept 7th: Sold goods on credit to Simon at Sh. 17,800 less 20% trade discount.
Sept 10th: Withdrew cash from the bank amounting to Sh. 1,000 for private use.
Sept 12th: Sold goods on credit to Eric at Sh. 12,800.
Sept 14th: Paid Sh. 10,000 in cash to Jambo ltd in full settlement of their account.
Sept 15th: Received Sh. 8,000 in cash from Eric in part settlement of his account
Sept 17th: Goods worth Sh. 800 were returned by Eric.
Sept 21th: Purchased goods on credit at Sh. 17,400 from Shauri ltd.
Sept 24th: Paid Sh. 12,000 to Shauri ltd by cheque; discount given was Sh. 600.
Sept 25th: Purchased furniture on credit from Magic furniture for Sh. 16,000
Sept 26th: Transferred Sh. 4,400 from the cash till to the bank account.
Sept 27th: Eric was declared bankrupt and could only pay Sh.2,000 of the debt by cheque the rest being treated as a bad debt.
Sept 28th: Goods worth Sh. 1,200 were returned to Shauri ltd.
Sept 29th: Goods worth Sh. 800 were taken by Michael Kamau for his personal use.
Sept 29th: Paid Sh. 1000 by cheque for advertising.
Sept 29th: Paid wages to shop assistant in cash amounting to Sh. 3,600.
Sept 29th: Made cash sales of Sh. 43,600
Sept 29th: Banked Sh. 40,000
Sept 29th: Received cash of Sh. 11,800 from Simon in part payment of their account after allowing a discount of Sh. 200.
Required;
a) Record the above transactions in the appropriate ledger accounts including the three column cash book.
b) Extract a trial balance as at 30th September 2013.
Date posted:
August 17, 2021
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Answers (1)
Describe a Return Outwards Journal.
(Solved)
Describe a Return Outwards Journal.
Date posted:
August 17, 2021
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Answers (1)
Describe a Return Inwards Journal.
(Solved)
Describe a Return Inwards Journal.
Date posted:
August 17, 2021
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Answers (1)