Question:

Mark Phiri is an entrepreneur running a general retailing business. On 1st October 2021, he decided to introduce double entry book keeping system in his business. His assets and liabilities as at that date were as follows:

Fixtures and equipment: K200,000.00

Inventory: K150,000.00

Bank Balance K175,000.00

Cash K3.750.00

Creditors: Banda K31,750.00; Tembo K2000.00; and Zulu K5000.00

Mark's transactions during the month of October 2021 were as follows:

5 Sold goods to Mbewe, for cash K50,000.00.

7 Bought furniture on credit from Supreme Furnishers K25,000.00.

9 Sold Stocks to Njovu on credit, K15,000.00

10 Bought Fixture and Fittings from Ngulube on credit, K35,000.00

11 Paid the balance owed to Banda at 1 October less a 5% cash discount.

16 Paid Supreme Furnishers full amount due by cheque.

17 Received full amount due from Njovu by cheque.

29 Paid, by bankers order, K100,000.00 for repairs to the premises.

Required:

Open all Mark's ledger accounts as at 1st October 2021, record all transactions for the month of October 2021, balance the ledger accounts, and prepare a trial balance as at 31st October 2021. 1