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ONE Fountain Restaurant had the following balances on 1/1/2021: Cash at bank Cash at hand Inventory Trade Receivables: K245,000 K 148,000 K700,000 John K150,000 Ben
ONE Fountain Restaurant had the following balances on 1/1/2021: Cash at bank Cash at hand Inventory Trade Receivables: K245,000 K 148,000 K700,000 John K150,000 Ben K250,000 Dennis K 100,000 Trade Payables Peter K80,000 Inonge K75,000 Land and Buildings K450,000 K178,000 Loan The following transactions took place during the month: 4/1/21 5/1/21 6/1/21 7/1/21: 9/1/21 10/1/21 11/1/21 12/1/21: 13/1/21: 15/1/21: 17/1/21: 18/1/21: 22/1/21: 27/1/21: 28/1/21; 29/1/21: 30/1/21: Sold goods for cash K165,000,the goods cost K152,000 Purchased goods on credit from Peter and Inonge for K15,000 and K25,000 respectively. Withdrew cash amounting to K2,000 from the bank for personal use. We returned to Peter K200 worth of goods purchased on 5/1/21 for poor quality Withdrew K2,500 from the bank for business use We paid Peter in full by cheque after allowing us a discount of 2.5% We purchased goods paying by cash K45,000 Bought Land from EW farms on credit for K75,000 Received a cheque from John and Ben if full after allowing them a discount of 10% Dennis returned goods worth K7,000 Dennis settled his account in full by cash after allowing him a discount of 2% Paid EW Farms 60% of the amount owed by cheque. K100,000 was paid towards the loan by cheque Paid the following by cheque: Electricity K1,000, Rates K7,800 and Wages K1,450. Paid the following by cash: Stationery K300 and Travel expense K780 Sold goods on credit to Samson for K54,000. If payment is received within 10 days a cash discount of 1.5% will be given. Samson settled his account in full by cheque. 31/1/21: JMwanza lent us K200,000. The amount was deposited directly into our account. Required to enter the above accounts in their respective ledger accounts (balance off the ledger accounts) (24 marks)
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