Mr J Mwero, a wholesale merchant had the following balances in his ledger at 1 March 2019.Cash in hand Sh.3,000; Bank overdraft Sh.7,000; Motor vans Sh.56,000; Furniture and Equipment Sh.11,900; Creditor (R. Osoro) Sh.4,800; Debtor (B. Anyumba) Sh.3,000; Capital Sh.20,000; Loan from Kokise Investment Ltd. Sh. 42,100. At the end of the month, Mr. J Mwero was able to provide the following information from his records: Cash Transactions: I) Receipts - March 7: Cash Sales - Sh.1,200 “ 26: Cash from bank - Sh.3,500 ii) Payments - March 10: Electricity - Shs.200 “ 14: Salaries - Sh.1,800 “ 25: Postage and Stationery - Sh.960 Bank Transactions: i) Receipts - March 17: B. Anyumba - Sh.48,000 ii) Payment - March 20: R. Osoro - Sh. 20,600 in full Settlement less Sh.200 cash discount March 27: Kokise Investment Ltd. - Shs.2,100 Other Transactions: March 5:Purchase goods - Sh.16,000 from R OsoroMarch 11: Sold goods to B Anyumba - Shs.50,000March 13: Bought office chair - Sh.280 on credit from United Furniture martMarch 15: B Anyumba returned goods worth Sh.150 Required, Open accounts in Mr J Mwero’s ledger and post above transactions in the ledger and the three column cash book. Required, Balance the accounts and extract a Trial Balance as at 31March 2019.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5PA: Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow...

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Mr J Mwero, a wholesale merchant had the following balances in his ledger at 1 March 2019.Cash in hand Sh.3,000; Bank overdraft Sh.7,000; Motor vans Sh.56,000; Furniture and Equipment Sh.11,900; Creditor (R. Osoro) Sh.4,800; Debtor (B. Anyumba) Sh.3,000; Capital Sh.20,000; Loan from Kokise Investment Ltd. Sh. 42,100.

At the end of the month, Mr. J Mwero was able to provide the following information from his records:

Cash Transactions:

I) Receipts -

March 7: Cash Sales - Sh.1,200 “

26: Cash from bank - Sh.3,500

ii) Payments -

March 10: Electricity - Shs.200 “

14: Salaries - Sh.1,800 “

25: Postage and Stationery - Sh.960

Bank Transactions:

i) Receipts -

March 17: B. Anyumba - Sh.48,000

ii) Payment -

March 20: R. Osoro - Sh. 20,600 in full Settlement less Sh.200 cash discount

March 27: Kokise Investment Ltd. - Shs.2,100

Other Transactions:

March 5:Purchase goods - Sh.16,000 from R OsoroMarch

11: Sold goods to B Anyumba - Shs.50,000March

13: Bought office chair - Sh.280 on credit from United Furniture martMarch

15: B Anyumba returned goods worth Sh.150 Required, Open accounts in Mr J Mwero’s ledger and post above transactions in the ledger and the three column cash book.

Required,

Balance the accounts and extract a Trial Balance as at 31March 2019.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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