SUBSIDIARY BOOKS & LEDGER/TRIAL BALANCE

On 1^st January 2018 Kijana Raburu commenced a retail business with Sh.270,000 in cash, a second-hand car worth Sh.252,000 and an office desk valued at Sh.18,000

The following transactions were recorded during the month of January:

1Opened bank current account with Sh.180,000 cash

1Paid office rent by cheques Sh.9,000

3.Bought goods for resale and paid by cheques Sh.67,500

4.Cash sales Sh.43,200, paid wages Sh.3,375 in cash

5.Sold goods to Alfred on credit Sh.36,000

8.Bought goods worth Sh.63,000 on credit from Thika Wholesalers, less 10% trade

Discount.

11Cash sales Sh.18,000

11Paid cash into bank Sh.13,500

13Cash purchases Sh.40,500

15Sold goods on credit to Malava retailers worth Sh.72,000 less 10% trade discount

17Received cash Sh.9,000 from Alfred on account

18Sold goods on credit to Kitui traders worth Sh.78,300

19Kitui traders returned goods worth Sh.400 for being damaged and were given a credit

Note.

20Returned goods to Thika wholesalers Sh.900 and received a credit note

20Drew cheques for office use Sh.9,000

21Cash purchases Sh.34,020

21Purchased goods on credit from Winam enterprises Sh.81,000

22Returned goods to Winam enterprises, worth Sh.4,500 and received a credit note

24Cash sales Sh.27,000, banked Sh.18,000

25Purchased duplicating paper, pens, pencils, envelopes for office use all valued at

Sh.7,200 cash

26Alfred sent a cheques in full settlement of his account after having deducted 5% cash

Discount

27Settled Thika wholesalers account by cheques less Sh.990 cash discount

28Paid electricity bill Sh.1,125 in cash

29Settled water bills by cheques Sh.1,530

30Drew cheques for personal use Sh.9,000

30Received cash from Kitui traders Sh.13,500 on account

30Paid Winam enterprises Sh.36,000 on account by cheques

31Paid motor repairs expenses Sh.15,300 in cash

31Banked cash Sh.45,000

31Bought two Dell typewriters for Sh.81,000 by cheques.

Required: Question

1)Post entries into the ledger accounts, balance off the ledger accounts

Draw up a ledger account that looks like the one below(just an example)

Capital Account Sh. Sh. Balance C/d 82,200 Cash 31,400 Bank 50,800 82,200 82,200 Cash Account Sh. Sh. Capital 31,400 Inventory 8,200 Receivables-Eric 8,000 Bank 4,400 Receivables-Eric 2,000 Drawings 1,000 Sales 43,600 Wages 3,600 Receivables-Odero & Sons 11,800 Payable-Jakaya 10,000 Bank 40,000 Balance C/d 29,600 96,800 96,800 Bank Account Sh. Sh. Capital 50,800 Payables (Mavoko Ltd.) 12,000 Cash 4,400 Advertising 1,000 Cash 40,000 Bal c/d 82,200 95,200 95,200 Purchases Account Sh. Sh. Cash 8,200 Drawings 800 Payables (Jakaya) 14,400 Bal c/d 39,200 Payables (Mavoko) 17,400