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  • Illustration - Double Entry

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    robeynat1
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    The document contains two illustrations of transactions that need to be recorded. Illustration I lists transactions from July 1-10 that need to be recorded in asset, liability, and capital accounts, including starting the business with cash and purchases of furniture, goods, and a motor van using cash and credit. Illustration II lists May transactions for a business, including purchasing a vehicle on credit, writing off a bad debt, returning goods, a debtor declaring bankruptcy, the owner taking goods, an expense payment belonging to the owner, and purchasing a machine on credit, and asks for journal entries, ledger accounts, and a trial balance.

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    The document contains two illustrations of transactions that need to be recorded. Illustration I lists transactions from July 1-10 that need to be recorded in asset, liability, and capital accounts, including starting the business with cash and purchases of furniture, goods, and a motor van using cash and credit. Illustration II lists May transactions for a business, including purchasing a vehicle on credit, writing off a bad debt, returning goods, a debtor declaring bankruptcy, the owner taking goods, an expense payment belonging to the owner, and purchasing a machine on credit, and asks for journal entries, ledger accounts, and a trial balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views1 page

    Illustration - Double Entry

    Uploaded by

    robeynat1
    The document contains two illustrations of transactions that need to be recorded. Illustration I lists transactions from July 1-10 that need to be recorded in asset, liability, and capital accounts, including starting the business with cash and purchases of furniture, goods, and a motor van using cash and credit. Illustration II lists May transactions for a business, including purchasing a vehicle on credit, writing off a bad debt, returning goods, a debtor declaring bankruptcy, the owner taking goods, an expense payment belonging to the owner, and purchasing a machine on credit, and asks for journal entries, ledger accounts, and a trial balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    ILLUSTRATION I

    Write up the asset, liability and capital accounts to record the following transactions;
    On July 1st started business with Kshs 15,000 in the bank
    On July 2nd bought office furniture worth Kshs 1,200 by cheque
    On July 3rd bought goods worth Kshs 1,400 from ABC ltd on credit
    On July 5th bought a motor van paying by cheque Kshs 6010
    On July 8th made credit sales of Kshs 150 to Mike.
    On July 10th bought goods worth Kshs 650 by cheque.

    ILLUSTRATION II
    The following transactions relates to Jasho Traders a small and medium size Enterprise (SME)
    operating in Kutus town for the month of May.
    ✓ On May 1st bought a vehicle on credit from Kenya motors for Kshs 96,000.
    ✓ On May 3rd a debt of Kshs 6,000 owing from John was written off as a bad debt.
    ✓ On May 8th goods worth Ksh. 12,500 were returned to supplier BB ltd as they were
    deemed to be unsuitable. Full allowance was given.
    ✓ On May 12th Ken a debtor who owed Jasho Traders Kshs 4,000 was declared bankrupt
    and the SME received Kshs 1,050 in full settlement of the debt.
    ✓ On May 14th the sole proprietor of Jasho Traders took goods costing Kshs 3,500 out of
    the business stock without paying for them.
    ✓ On May 28th it was discovered that Kshs 1,500 paid as an expense titled business
    insurance, belonged to the sole proprietor’s personal insurance.
    ✓ On May 30th a business machine worth Kshs 25,000 was purchased from ART ltd. on
    credit.
    Required:
    a) Journal entries for the above transactions.
    b) Ledger accounts for the above transactions.
    c) A trial balance as at 31st May.

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