Question

QUESTION
Mr J. Walker, a trader in Lusaka’s Kamwala area, has not been keeping books of accounts till now when he has hired you to be his book keeper. The following are the opening balances on May 1, and the transactions for the operations of the month:
May 2019
1 Assets: Premises K34,000; Van K5,125; Fixtures K810; Inventory K6,390; Accounts receivable: P. Mullen K140, F. Lane K310; Cash at bank K6,240; Cash in hand K560.
Liabilities: Accounts payable: S. Hood K215, J Brown K640.
2 Paid storage costs by cheque K40.
3 Goods bought on credit from; S. Hood K145; D. Main K206; W. Tone K96; R. Foot K66.
4 Goods sold on credit to: J. Wilson K112; T. Cole K164; F. Syme K208; J. Allen K91; P. White K242; F. Lane K90.
7 Paid for motor expenses in cash K60.
9 Cash drawings by proprietor K150.
Page 2 of 2
11 Goods sold on credit to: T. Cole K68; J. Fox K131.
14 Goods returned to Walker by; J. Wilson K32; F. Syme K48.
16 Bought another van on credit from Abel Motors Ltd K4,850.
19 The following paid Walker their accounts by cheque less 5 per cent cash discount: P. Mullen; F. Lane; J. Wilson; F. Syme.
22 Goods returned by Walker to R. Foot K6.
24 Goods bought on credit from: L. Mole K183; W. Wright K191.
27 The following accounts were settled by Walker by cheque less 5 per cent cash discount: S. Hood; J. Brown; R. Foot.
27 Salaries paid by cheque K740.
30 Paid business rates by cheque K140.
31 Paid Abel Motors Ltd a cheque for K4,850.

Required:
i. Post the journal entries for the opening balances complete with narrations.
ii. Record the daily transactions in the appropriate book of original entry.
iii. Open the appropriate accounts in the Purchases Ledger, Sales Ledger, and the General Ledger and post the transactions.
iv. Balance off the General Ledger accounts.
v. Prepare the closing Trial Balance as at 31 May 2019.
[Total: 25 Marks

Answer 1

Q: mr. J. walkes, a trader in Lusak's Kamwala area, has not been keeping ? Sol my. J.walkes, a toadez in Lusak's aree he has hired you to be his Book keepes. Journal Entry Date particulars Debit credit premises ALC Dy. K.34.000 Van ALC Dr k. 1,525 Fixtures AIC Dr B. 810 Inventory AIC Dr $6390 P. mullen Alc DY IK.140 L. Lane AIC I cash in Bank AIC cash in hand A/C DY Dr Dr K. 310 K.6240 K.560 K. 215 5.640 K. 49,120 TO S. Hood Alc TO J. Brown AIC TO capital A/C Copening Entry working Note 1) Capital Assets - Liabities

2 거 Storage Expense Alc DY k40 K 40 TO Bank AIC (paid Storage cost by chequie) 3 Alc purchase 3.513 DY to S. Hood AIC K14 15 K 206 k96 to Domain Alc to wo Tone Al to R. Foot A/C Goods purchased on credit) K66 4 J. Wilson Alc K 112 K 164 To.Cole Alc Dr Fosyme Kaos DY AIC AIC or K91 To Allen 2 AIC Do ช Po white 242 AIC Dr R90 F. Lane K 907 to sales AIC (sold good on credit) 4 K60 Alc Do motor Expense to cash K60 о Al (Paid Formotor Expense in cash)

Drawing AIC Dr K 150 to cash Alc k150 (Drawings made proportior) DY KGS To. cole Al J. Fox Al DO KIBI K 199 to sales Al cridit) (sold good on 141 sales Retun Alc DO 380 to: J. Wilson AIC to F. syne Alc K 32 K48 (Goods sold returned to walker) 16 van AIC DO K4,850 154,850 to Abel motaz s Ltd Alo 19 Bank AIC DY K74) K 39 cash Discount AJC Dr 3140 K400 K 80 to P. mullen AIC to F. Lane AI to J. wilson AIC to F syme Alc (Received chaque and offered 50% Cash Di Sccount) K 160

(4) DY k6 R. Foot AIC to purchase Reteron Alc K6 (Good nurchesed retuned to R. Fo oat) 24 K374 K 183 purchase Al tol. mole Al to w.wright ATC epurchase Good on credit) K19 27 S. Hood AIC AIC J. Brown R. foot .DY K360 D8 K640 Dr K60 Al 353 to cash To Bank Aiscount ATC Alc K1,060 (paid the suppliers with 5% cash discount) 27 sataries Alc DY1740 to Bank K 740 (paid calaries by cheque) 30 R140 Business Rates Alc Dr to Bank AIC cpaid business dates by Choque) 3140 .311 Dr K 4,850 Abel motors Ltd Alc to Bank AIC K4,850 paid Abel motors Ltd Ayo choque)