Q4a)

The following transaction took place in the month of November 2016 in Barakas business

1/11/2016 Baraka invested shs.50,000 cash in the business

3/11/2016 Bought stock worth shs15,000 and paid by cash

5/11/2016 Returned some broken stock items worth shs.500 and was refunded cash

6/11/2016 Bought more stock worth shs4,000 from Isaac on credit

7/11/2016 Deposited shs.5,000 cash into the business bank account

11/11/2016 Made cash sales amounting to Shs20,000

15/11/2016 Bought furniture worth shs3,000 and paid by cash

20/11/2016 Made credit sales to Kamau worth Shs6,000

22/11/2016 Kamau returned goods worth shs500 because they had expired

25/11/2016 Paid Isaac shs2,000 using cash

28/11/2016 Received a cheque of shs3,000 from Kamau

28/11/2016 Baraka withdrew shs1,000 cash from the business for personal use

Required

i)Open the relevant ledger accounts and post the above transactions

ii)Balance off the accounts as at 30/11/2016

iii)Prepare a trial balance as at 30/11/2016

b) State and explain the contents of the three ledger books.

Q5)a) Explain the following terms as used in accounting

i)Business entity concept

ii)Historical cost concept

iii) Prudence concept

iv)Materiality concept

v)Matching concept