a. The balance in the business bank account of Mr. Ouma as at 1.1.03 stood at sh 400. The cash at hand as at that day was sh 1000.

During the month of January 2003, the following transactions took place:

January 1: Paid rent by cheques sh.1000

January 3 Cash sales of sh.1000

January 4:Paid electricity cash sh.500

January 8:Received from credit customer's payment by cheques as follows

Musau sh.2000

Onyango sh. 4,000

Juma sh. 3,000

January 12: Paid telephone bill by cheques sh.3000

January 15: Cash sales sh.15000

January 16: Deposited sh 12000 to the bank account

January 20: Paid supplies by cheques as follows

Njoroge sh 1000

Kamau sh 3000

Otieno sh 2000

January 25: Drew sh 2000 from bank for office use

January 25: Cash purchase sh.1500 cash

January 28: Drew for personal use sh 500 cash

Requirement

Draw a two-column cashbook.(7 Marks)

b. The salaries account of Musundi Enterprises showed a balance of sh 10,000 as at June, 2013. You have been informed that sal

amounting to sh 3500 were due but not paid to the workers at the date.

Show the entries at year end and balance on 31.06.2013 of the following accounts:

i. Salaries account

i. Salaries outstanding account

lit. Profit and loss a/c (extract)

iv. Balance sheet (extract)