Financial statements may be defined as a structured financial representation of the events that have an impact on an entity and the transactions undertaken by it during the financial year to which these statements relate. Financial records will be most beneficial when we keep accurate books of accounts. 1. Explain what you would need to keep accurate books of accounts. Give examples in reference to the institution you are familiar with and list the steps that you expect a financial transaction to go through. 2. Record the following transactions in the appropriate ledger accounts and prepare a Trail Balance as at 30th June 2022. June 2022 1st: 3rd: 4th 5th 7th 9th 10th 11th : 12th : 14th: 15th 16th : 17th : 18th : 19th : 20th Nchimunya started business with a capital of K 80,000 Bought goods from Bwalya on credit K 20,000 Sold goods to Twaambo K25,000 Cash purchases K 25,000 Cash sales K 15,000 Goods retuned to Bwalya K 2,000 Bought furniture for K15, 000 Cash paid to Bwalya K12, 000 Goods returned by Bwalya K3,000 Goods taken by Nchimunya for personal use K3,000 Cash received from Twaambo K12, 000 Took loan from Banda K30, 000 Salary paid K5, 000 Bought stationery for K1, 000 Amount paid to Banda on loan account K18, 000 Interest received K4, 000
Financial statements may be defined as a structured financial representation of the events that have an impact on an entity and the transactions undertaken by it during the financial year to which these statements relate. Financial records will be most beneficial when we keep accurate books of accounts. 1. Explain what you would need to keep accurate books of accounts. Give examples in reference to the institution you are familiar with and list the steps that you expect a financial transaction to go through. 2. Record the following transactions in the appropriate ledger accounts and prepare a Trail Balance as at 30th June 2022. June 2022 1st: 3rd: 4th 5th 7th 9th 10th 11th : 12th : 14th: 15th 16th : 17th : 18th : 19th : 20th Nchimunya started business with a capital of K 80,000 Bought goods from Bwalya on credit K 20,000 Sold goods to Twaambo K25,000 Cash purchases K 25,000 Cash sales K 15,000 Goods retuned to Bwalya K 2,000 Bought furniture for K15, 000 Cash paid to Bwalya K12, 000 Goods returned by Bwalya K3,000 Goods taken by Nchimunya for personal use K3,000 Cash received from Twaambo K12, 000 Took loan from Banda K30, 000 Salary paid K5, 000 Bought stationery for K1, 000 Amount paid to Banda on loan account K18, 000 Interest received K4, 000
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 1EB: Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by...
Related questions
Question
Transcribed Image Text:Financial statements may be defined as a structured financial representation of the events that have an
impact on an entity and the transactions undertaken by it during the financial year to which these
statements relate. Financial records will be most beneficial when we keep accurate books of accounts.
1. Explain what you would need to keep accurate books of accounts. Give examples in reference to
the institution you are familiar with and list the steps that you expect a financial transaction to go
through.
2. Record the following transactions in the appropriate ledger accounts and prepare a Trail Balance
as at 30th June 2022.
June 2022
1st :
3rd :
4th
5th
7th
9th
10th :
11th :
12th :
14th :
15th :
16th :
17th :
18th :
19th :
20th :
:
:
:
:
Nchimunya started business with a capital of K 80,000
Bought goods from Bwalya on credit K 20,000
Sold goods to Twaambo K 25,000
Cash purchases K25,000
Cash sales K 15,000
Goods retuned to Bwalya K 2,000
Bought furniture for K15, 000
Cash paid to Bwalya K12, 000
Goods returned by Bwalya K3, 000
Goods taken by Nchimunya for personal use K3, 000
Cash received from Twaambo K12, 000
Took loan from Banda K30, 000
Salary paid K5, 000
Bought stationery for K1, 000
Amount paid to Banda on loan account K18, 000
Interest received K4, 000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 15 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub