Courses|Journal Entry and Legder Books

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QUESTION ONE

Enter the following transactions into accounts of Marino Ltd. for the month of December 2018.

Dec 1 started business with cash Shs. 850,000 and a car worth 1,500,000
Dec 3 Transferred Shs. 500,000 of cash into business bank account
Dec 4 Bought goods Shs. 250,000 on credit from Maria
Dec 6 Sold goods Shs. 100,000 on credit to Kimondo.
Dec 8 Returned unsuitable goods Shs. 50,000 to Maria
Dec 10 Cash sales Shs. 60,000
Dec 12 Bought goods shs. 150,000 on credit from Tambale
Dec 14 Bought machine shs. 500,000 for use of the business on credit from Sidio Ltd.
Dec 17 Paid amount owing to Maria by cheque
Dec 18 Obtained loan for shs. 1,000,000 from Wakuru Saccos, being cheque received
Dec 19 Paid Sidio Ltd. the amount owing by cheque.
Dec 20 Sold goods shs. 100,000 on credit to Felix.
Dec 22 Kimondo settles her account by cheque
Dec 23 Felix returns goods shs. 25,000
Dec 29 Cash sales shs. 55,000 paid direct into bank
Dec 31 Felix settles his account by cheque

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QUESTION TWO

James is a sole proprietor having a small store. Following are the transactions during the month of January, 2018. Journalise them.

Jan.1 Commenced business with cash T.shs 80,000
Jan.2 Deposited cash with bank T.shs 40,000
Jan.3 Purchased goods by paying cash T.shs 5,000
Jan.4 Purchased goods from Mwinuka on credit T.shs 10,000
Jan.4 Paid carriage on purchased goods T.shs 500
Jan.5 Sold goods to Joykim and received cash T.shs 11,000
Jan.6 Paid salaries by cash T.shs 5,000
Jan.7 Paid Mwinuka by cheque for the purchases made on 4th Jan.
Jan.8 Bought furniture by cash T.shs 4,000
Jan.9 Paid electricity charges by cash T.shs 1,000
Jan.10 Paid Municipal taxes in cash T.shs 5,000

QUESTION THREE

Nathan is a trader dealing in Tiles. Pass Journal entries for the following transactions for the month of January, 2020.

Jan.1 Commenced business with cash T.shs 70,000.
Jan.2 Purchased goods from Majuto on credit T.shs 30,000.
Jan.3 Cash deposited into bank T.shs 40,000.
Jan.4 Bought a building from Polepole on credit T.shs 95,000.
Jan.5 Cash withdrawn from bank for office use T.shs 5,000.
Jan.6 Cash withdrawn from bank for personal use T.shs 4,000.
Jan.7 Old newspaper sold shs. 2,000
Jan.8 Tiles taken over by Nathan for personal use T.shs 12,000.
Jan.9 Paid for advertisements shs. 1,000.
Jan.10 Goods (Tiles) used for office use T.shs 200.

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QUESTION FOUR

Pamela is a sole trader dealing in soft drinks. From the following transactions, pass journal entries for the month of March, 2018.

March.1 Commenced business with cash shs 4,000,000.
March.2 Cash deposited into bank shs 3,000,000.
March.3 Purchased goods from Lwambano and payment made through internet banking shs 900,000.
March.4 Sales made to Kamau, who deposited the money through internet banking shs 10,000.
March.5 Sales made to Lilian, who made the payment by M-Pesa shs 60,000.
March.6 Sold goods to Karen, who made the payment through Tigo Pesa shs 50,000.
March.7 Dividend directly received by bank shs 2,000.
March.8 Money withdrawn from ATM shs 3,000.
March.9 Salaries paid through Airtel Money shs 6,000.

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QUESTION FIVE

Nyang’ombori is a dealer in stationery items. From the following transactions, pass journal entries for the month of January 2018.

Jan.1 Commenced business with cash shs. 2,000,000.
Jan.2 Opened a bank account by depositing cash shs. 1,000,000.
Jan.3 ‘A 4 papers’ sold on credit to Wema shs. 600,000.
Jan.4 Cheque received from Wema shs 590,000 for full settlement of shs. 600,000.
Jan.5 Bank charges paid shs. 5,000.
Jan.15 Cheque received from Wema, shs. 590,000. was dishonoured.

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QUESTION SIX

Nyabitage is a dealer in Spare parts. From the following transactions, pass journal entries for the month of February, 2015.

Feb.1 Sold goods on credit shs 2,000,000.
Feb.2 Purchased goods on credit shs 800,000.
Feb.3 Bad debts written-off shs 60,000.
Feb.4 Bought Motor Van for Cheque shs 590,000.
Feb.5 Charge 5% Depreciation on Motor van which costed shs 590,000 – Straight line method.
Feb.15 Trade discount of 70,000 was given to customers.

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QUESTION SEVEN

Komanya is a sole trader dealing with sale of milk. Pass Journal entries to record the following transactions for the month of January.

Jan.1 Sold motor cycle for shs 600,000.
Jan.2 Bought a new motor cycle from Wajama shs 800,000.
Jan.3 Bought new machine for business shs 200,000.
Jan.4 Paid new machine installation cost shs 50,000.
Jan.5 Paid shs 26,000 for repair of machine.
Jan.6 Sold goods on credit to Mwajabu shs 120,000.
Jan.7 Received discount from Wajama shs 12,000.
Jan.9 Komanya allowed discount of shs 8,000 to Mwajabu.
Jan.15 Trade discount of 7,000 was earlier given to Mwajabu.

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