PRACTISE EXERCISE

1. From the following transactions, open the relevant ledger accounts.
   1. 1/1/2010 Sold goods on credit for Kshs. 15,000/=.
   2. 2/1/2010 Bought goods on credit for Kshs. 5,000/=.
   3. 3/1/2010 Paid creditors Kshs. 3,000/= by cheque.
   4. 4/1/2010 Received a cheque of Kshs. 2,000/= from a debtor.

2. Kamotho had the following assets and liabilities on 1^st January, 2012

Shs.

Capital 13,730

Stock 5,000

Stationery 1,560

Cash 1,000

Overdraft 2,500

Premises 14,000

Creditors 1,370

Five year plan 4,160

During the month, the following transactions took place:

January 2: Received from debtors Shs. 150 by cheque

5: Sold goods worth Shs. 3000 for Shs. 9000 and deposited the money in his bank account

6: Paid Shs. 500 cash towards a 5 year loan

Prepare a balance sheet as at 31^st January, 2012

3. The following information was provided by Kisumu traders for the year ended 31 December2013.use it to prepare balance sheet.

Shs.

Stock 1,500

Creditors 3,000

Debtors 2,000

Machinery 20,000

Bank over draft 500

Cash 4,000

4. The following transactions relate to JUMA Traders from the month of March 2013.

2013

March 1: 2: 15: 30:

Started a business with sh 200,000 bank Withdrew sh 50,000 from the bank for office use. Paid sh 12,000 by cheque for office equipment repairs Withdrew sh 10,000 to pay for his sons hospital bill

Post the above transaction into the relevant ledger accounts.

5. The following balances were extracted from the books of Buruburu Traders as at 31^st December, 2013.

SHS

Land and buildings 250,000

Capital 470,000

Plant and Machinery 100,000

Motor Vehicle 150,000

10 year bank loan 100,000

3 years ICDE loan 50,000

Stock (31/12/13) 50,000

Debtors 30,000

Creditors 30,000

Accrued expenses 10,000

Cash at bank 50,000

Cash in hand 10,000

Drawings 20,000

Prepare:

A balance sheet as at 31^st December 2013.