COURSE WORK – FINANCIAL ACCOUNTING PROCUREMENT KYU

Qn 1) Expound on any ten of the accounting principleS. For each of the principles,
give clear and appropriate examples from your experiences and/or readings to
more clarify the principle. Marks will be awarded particularly for appropriate
examples.
Qn 2) Marble Enterprises ltd conducted its business transactions during the
month of July 2016 and the following were the affairs that were to be accounted
for in the financial records of book keeping.
July 1 The company purchased goods for Sh.120,000/= on credit from James
July 2 The company bought goods on credit for sh.800,000/= from Paul
July3 The company sold goods to Johnson on credit for Sh. 2,000,000/=
July 4 The company bought goods on credit from James for Sh.400,000/=
July5 The company sold good to Marion on credit for Sh.800,000/=
July 6 Rent was paid for Sh.200,000/= for office stores
July 7 Goods worth Sh.100,000/= were returned to James because they were
defective.
July 8 The company paid James Sh. 300,000/= by Cheque.
July 10 Goods worth sh.100,000/= were returned to Paul due to their
defectiveness
July 12 Part payment of Sh.1,600,000/= was received from Johnson for goods
earlier taken on credit.
July 14 Part payment of Sh.160,000/= cash was made to Paul
July 16 Marion rejected and returned goods worth Sh.80,000/=
July 17 The company received Cheque of Sh.300,000/= from Marion as
partpayment for goods taken on credit.
July 19 Sales of goods to Johnson on credit were made for Sh.1,600,000/=
July 20 The company bought goods for sh.200,000/= by cash.
July 23 Goods were sold by cash worth Sh. 1,000,000/=
July 24 The company paid staff Salaries Sh.300,000/= by cash andSh. 320,000/= by
cheque
July 25 Rent again was paid for Sh.120,000/= by cheque.
July26 The company sold goods for Sh.8,000,000/=
July 26 They purchased goods for 200,000/= from Paul on credit
July 27 They paid Paul Sh.160,000/= by cash.
July 28 Johnson rejected goods and returned them at Sh.200,000/=
July 28 The company received a cheque of Sh.400,000/= from Johnson for goods
sold to him on credit
July 29 A prepayment of rent was made for sh. 40,000/=
July 30 Electricity bill for sh.100,000/= by cheque and Sh.200,000 by cash was
settled.
July 30 Water bills for Sh.560,000/= were unpaid by end the month but would be
cleared in 2 months’ time.
July 31, a Bank loan from a local Bank was secured for sh. 600,000/= for office
use.

REQUIRED:
a) Journalize the above financial transactions for Marble Enterprises Ltd for
July 2016
b) Prepare the Ledger Accounts to reflect the above transactions during July
2016
c) Extract the Trial balance reflecting the financial tractions as laid out for July
2016.