On 2 January 2015, Garikai Estate Agents (Pvt) Ltd, a property company was incorporated with

authorised share capital of 5 million ordinary shares of $1 each. Being a family business, the
company immediately issued in full 1.6 million shares at a premium of $0.25 per share all of
which were taken up by family members. The shares were fully subscribed and the proceeds
deposited into the business bank account on 5 January 2015.

Other transactions for January 2015 were as follows:

Jan 7: Eight blocks of flats were purchased for $1 950 000, payment being made by cheque
immediately. Each flat had 10 suites.
Jan 9: Fix-it & Co were hired at a total cost of $3 000 to undertake maintenance work on all
the flats, a down payment of $1 500 being made immediately and the balance to be paid
when the work is completed.
Jan 10: Paid $300 to Chronicle for an advert.
Jan 11: Paid $1 500 to Fix-it & Co on completion of the job.
Jan 12: Paid $10 per suite for electricity units to help tenants as they come in.
Jan 15: Sixty tenants moved in each paying $400, being $200 for the half month’s rentals and
another $200 for the half month’s security deposit. A Trust Bank Account was opened
and all security deposit monies received were deposited into this account.
Jan 24: Ten more tenants moved in, each being charged rentals on a pro rata basis for the
remaining days, plus a full month’s deposit of $400.
Jan 30: Paid salaries and wages: $1 600
Jan 31: Paid $400 for other Administrative expenses.
Jan 31: Received 5% commission on $240 000 being total value of sales of clients’
properties.

Required:

a) Record the above transactions in the General Journal of Garikai Estate Agents (Pvt) Ltd.
(10 marks)
b) Post the entries you have made in (a) above into the General Ledger. (10 marks)