Nairobi Book Sales Company limited runs a bookshop in Nairobi

Transactions for January, 2019

1 Jan - Introduced 8,000 capital, paid into bank account

2 Jan - Paid rent for premises 800 by cheque

4 Jan- Bought shop fittings 3,600 by cheque

5 Jan Bought stock of books for 5,000 on credit from Westland Bookshop

6 Jan Cashed a petty cash cheque for 2,000

8 Jan Sold booksfor4,000 paid into the bank

10 Jan Bought stationery for 200 out of petty cash

12 Jan Bought books on credit from Text Book center 4,000

15 Jan Sold book for3,500 paid into the bank

17 Jan Paid office expenses for 500 by cheque

17 Jan Sold booksfor2,500 paid into the bank

19 Jan Bought books from Tuskeys for 4,500 by cheque

20 Jan Received a bank loan of 5,000

23 Jan School returned books for 800, unsuitable, cheque refund sent

24 Jan Paid electricity for 700 from petty cash

30 Jan Paid salaries for 1,500 by cheque

31 Jan Sold books on credit to Nairobi College for 4,000

Other information:

1. Closing stock as at 31.01. 2019is 4,000

2. Depreciation at 10% per annum Straight line method

Required:

1. Post the above transactions

2. Calculate the depreciation for January, pass a journal entry and post to the general ledger

3. Balance off the accounts and extract the trial balance

4. Prepare financial statements comprising the profit and loss account/Statement of Income, Balance sheet/Statement of financial Position and Statement of cash Flows.