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Question One Sacotar Hardware Engineering Enterprise, a sole proprietor who deals in construction materials commenced business on 1 January 2019 with 540,000 cash at bank

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Question One Sacotar Hardware Engineering Enterprise, a sole proprietor who deals in construction materials commenced business on 1 January 2019 with 540,000 cash at bank and 28,000 cash in Hand and a Motor Vehicle valued at 240,000 During the year the following were the transactions occurred in the month of January 2019. Jan. 2. Paid Carriage expenses on good purchased by Cash 1,600 and paid Rent & Rate by Cheque 3,600 Jan. 2. Bought the following from Amani Enterprise on credit: 3,000 Bags of Cement @ 35 each 240 Tons of 7 inch Iron Rods @ 1.950 a ton 120 Buckets of Emulsion Paint @ 225 a bucket 150 Boxes of 4 inch nails @ 180 a box Jan. 2. Purchased Goods by paying a Cheque of 47,500 Jan. 6. Cash Sales to date 3.600 Jan. 7. Bought Office Equipment for by Cheque 66,000 Jan. 9. Bought Office Furniture by Cheque 24,000 Jan. 10 Paid Carriage expenses on goods sold to Customers by cash 1,340 Jan. 12. Sold the following to Rinacand Construction Ltd on credit: 2,500 Bags of Cement @ 38,000 a bag 160 Tons of Iron Rods @ 2.250 a ton 140 Boxes of 4 inch nails @ c220 a box 90 Buckets of Emulsion Paint @ 4240 a bucket Jan. 13. Sold goods for Cheque 490,000 and Purchased goods paying Cash 42,000 Jan. 14. Rinacand Construction Ltd returned the following as faulty: 30 Bags of cement for damage in transit 35 Boxes of 4 inch nails for containing 2 inch nails 10 Buckets of Emulsion Paint for contaminated Jan. 16. Received a Cheque from Rinacand Construction Ltd in full settlement of their account after granting a discount of 1,090 for early settlement of their account Jan. 18. Sold the following on credit to Tyler Civil Works Ltd 960 pieces of two-by-six Cedar Wood @ 110 each 520 pieces of one-by-twelve Wawa Boards @ 90 a board 340 Bags of Cement @ 40 a bag 260 gallons of gloss royal blue paint @ 240 a gallon Purchases subject to 6% Trade Discount Jan. 20. Settled Amani Enterprise's account by Cheque receiving a Discount of 1,600 Jan. 21. Bought the following on credit from Ziggy Hardware Enterprise 360 gallons of gloss grey paint @ 240 a gallon 620 Packets of Roofing Sheets @ 1,350 each packet 900 Bags of Cement @ 35 a bag Purchases subject to 8% Trade Discount Jan. 23. Tyler Civil Works Ltd returned the following on a Credit Note for 110 pieces of one-by-twelve Wawa Boards as bush cut 70 gallons of gloss royal blue paint for containing army green 60 pieces of two-by-six Wood supplied as Cedar but rather its Cassia wood Jan. 23. Paid for Postages and Stamps by Cash 1,060 Jan. 24. Paid for Printing and Stationary by cash 44.600 Jan. 24. Paid for Repairs and Maintenance by cash 5,340 Jan. 25. Cash Sales to date 65,990 Jan. 26. Deposited Cash of 52,700 to the bank Jan. 27. Returned the following to Ziggy Hardware Enterprise on a Debit Note for 30 gallons of gloss grey paint for containing grease 60 packets of roofing sheets damaged in transit 90 bags of cement damaged in transit Jan. 28. Cashed a Cheque of 36,900 Office use Jan. 29. Cash sales paid in to the bank 16,500 Jan. 31 Paid Salaries and Wages by Cheque e38,000 You are required to: a) Record the above transactions in the necessary Day Books or Journals i) The General Journal ii) The Sales Day book/Journal iii) The Purchases Day Book/Journal iv) The Returns Inwards Day Book/Journal v) The Returns Outwards Day Book/Journal vi) The Cash Book b) Post to the various ledgers i) The General Ledger ii) The Sales Ledger iii) The Purchases Ledger c) Extract a trial balance as at 31* January 2019 Total 40 Marks

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