Illustration Three

Jordan, a sole trader, had the following assets and liabilities on 1

st May 2010.

Cash in hand Ts. 900

Cash at Bank 1,800

Office Furniture 20,000

Debtor: Brown 3,500

Creditors: Juma 3,000

Transactions for the month of May 2010 are as follows:

2010 8 Purchased goods on credit from Juma Ts.1700/=

16 Received payment by cheque from Brown Ts.3,000/= net of discount; Discount

allowed Ts.200/=

17 Sold goods on credit to Ben Ts.2,600/=

20 Paid cheque to Juma Ts.2,600/= less 5% cash discount.

24 Cash sales Ts.1,280/=

27 Received cheque from Ben Ts.1,400/= less 5% cash discount

28 Cash from office paid into bank Ts.850/=

29 Paid rent Ts.1,400/= by cheque

Required:

i. Record the opening entries in the general journal.

ii. Prepare books of original entry to record the above transactions

iii. Post the transactions from the journals to the ledger.

iv. Balance the accounts at the end of the month.