KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
HTM 351: HOSPITALITY INDUSTRY ACCOUNTING
PRACTICE SET 3: RECORDING TRANSACTIONS USING THE ACCOUNTING
EQUATION AND JOURNAL ENTRIES
Question 1
On 1st January, 2022 Hajia started Hajia’s Resort Centre. The following were the business
transactions for January 2022.
GH₵
1/1/2022 Bank 50,000 CR
1/1/2022 Cash 95,000
Jan 1 Deposited Cash into bank 70,000
2 Cash sales 37,000
3 Paid rents by cheque 15,500
4 Withdrew cash from bank for business use 4,000
7 Received cheque from Kwadwo in payment of goods 21,000
10 Banked GH₵18,000 of the cash held by centre
17 Paid Gelgal for goods bought on credit for GH₵25,000
less 5% discount by cash.
20 Paid wages in cash 2,000
21 Bought fixtures by cash 15,000
22 Hassana paid the business her account of GH₵30,000 by cheque
less 10% discount.
23 Received a loan of GH₵42,000 cash from Oheneaku
24 Paid Hon. Lordina GH₵10,000 by cash.
25 Withdrew cash to pay premium on the life policy of the
General Manager 30,000
27 Cash sales banked 12,000
28 Najat paid the business by cheque 11,000
29 Received GH₵31,000 from Naa Atwei by cash
29 Ama Akyaa paid her account by cash 110,000
Required:
Write up a three-column cash book for Hajia’s Resort Centre for January 2022.

Question 2

1
Kwadjo Appiagyei| KSB
Prepare the cash book(three-column) from the books of Anarosa Hostel for the month of
December, 2022;
December 1 Introduced capital of ₵9000 bank
4 Withdrew cash of ₵5700
6 Bought goods on credit from Aunty Adwoa ₵700
10 Bought a motor van ₵2500 cash
15 Generated ₵1000 cash from hostel bookings of which ₵100 was discount given
17 Paid Aunty Adwoa ₵700 cash
22 Bought food stuffs for cash ₵1500
24 Procured the services of Esi’s cleaning services for ₵500 bank
29 Paid wages and salaries ₵1500 of which 1/3 was cash

Question 3
Wagyingo Hostel operates a petty cash on the imprest system with a float of ₵1000.
Reimbursements are made when cash on hand does not fall below ₵120. Below is a summary of
petty cash transaction for the period to September 30th, 2023
₵
September 1 received reimbursement by cheque from cashier 835
3 paid electricity expenses 425
8 paid for taxi fare 110
14 bought postages 340
17 paid a casual labor 550
21 bought vehicle oil 320
25 paid stationery 374
29 bought petrol 350

Question 4
The following balances were extracted from the books of ATAYA Bar and Food Joint for the
month of February 2022.
Furniture GH₵150,000
Cash on hand GH₵ 70,000
Bank Balance GH₵200,000
Trade Receivables: Ascertain GH₵ 1,200
Trade Payables: Suzzy GH₵ 26,000

The following transactions took place during the month of March 2022
March:
1 Paid cash 10,000 for rent.
2 Credit Sales: Ascertain GH₵50,000, Joe GH₵55,000
3 Credit Purchases: Suzzy GH₵30,000, Jane GH₵35,000

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Kwadjo Appiagyei| KSB
 4 Received cheques Ascertain: GH₵40,000, Joe GH₵10,000 (Discount 500),
6 Paid cheques: Suzzy GH₵ 24,000 (Discount GH₵2,000), Jane GH₵20,000,
8 Return Inwards: Ascertain GH₵10,000, Joe GH₵1,000
15 Paid Insurance GH₵50,000 by cash
16 Cash Sales GH₵120,000.
20 Cash purchases GH₵120,000
25 Paid cash into Bank GH₵5,000

Required:
i. record these transactions using the accounting equation
ii. record these transactions using the general journal
iii. Prepare a Trial Balance

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Kwadjo Appiagyei| KSB