dr total = 122,000 (higher to

DR

Post these transactions in the ledger and balance the ledgers Bal b/d
Therefre balanace on the C
1) The owner introduces 60,000 cash into the business

Cash an asset - increasing in the business Debit cash a/c

What belongs to the owner Capital- is also increasing Credit the capital a/c

2) the business receives a bank loan of 50,000 from KCB

We have receievd Cash - An Assset - increasing -- DR
KCB Bank loans - liability - increasing -- CR

3) The business pays rent expense of 6,000 in cash

Cash a/c - is reducing - Asset -- Credit
Rent Expense a/c --increasing - Expnse - debit

4) The business sells goods for 12,000 cash

Cash increases - an assets - Debit
Sales a/c - Income - increasing ( recording more income) --- CR

5) The Business buys goods for resale for 8000 for Cash

Cash a/c an Asset - is reducing ---- Credit

Purchases a/c -- is an expense (recording more expenses) -- DR

5) the owenr withdraw 4000 cash from the busines

Capital of the business reduces ---- Debit ( hoever when debiting the Cpaital a/c - we instead use the drawings a/c
Cash a/c - an Asset -- decreaases --- Credit

6) Purchase for Mororvehicle for use in the Business

Vehicle - An Asset -- Increases -- We DR

Cash a/c - Asset --- decreases -- we CR
 dr total = 122,000 (higher total) cr total = 58,000
CASH A/C CR

From capital 60,000.00 Paid to rent exense 6,000.00

From KCb Loan 50,000.00 Paid for purchases 8,000.00
Receivd from sales 12,000.00 Drwaings of cash 4,000.00
Purch M/V 40,000.00
Bal c/d (diff) 64,000.00 (122000 -58,000)
122,000.00 122,000.00
64,000.00
Therefre balanace on the Cash a/c is 64,000 Debit balance - the Bal b/d -- this is the balnace to be shown on the Trial balance
KCB LOAN a/c

To cash a/c 50,000.00

Rent Expense a/c

From cash 6,000.00

Paid for purchased by

Drawings a/c

Drawings for Cash 4,000.00

purchased via cash

nstead use the drawings a/c )

goods for resal - are expense sand income

when we buy them they are purchases -- main expense of the business
when we sell them they are income -- main income of the business
 Capital a/c

To cash a/c 60,000.00

own on the Trial balance

Sales a/c

Sold for cash 12,000.00

Purchases a/c - expense

Paid for purchased by 8,000.00

Motorvehicle a/c

purchased via cash 40,000.00

 Wages a/c
Date Narration Amount
6th from cash 100,000.00
12th from Cash 50,000.00 Bal c/d 150,000.00

150,000.00 150,000.00
Bal b/d 150,000.00

Victoria furniture - Creditor- (Liability)

17th From bank 150,000.00 10th to purchase 200,000.00

Bal c/d 50,000.00
200,000.00 200,000.00
Bal b/d 50,000.00

Lions Investement - A debtor ( Assets)

13th from Sales 80,000.00 24 th to Bank a/c 64,500.00

 Bal c/d 15,500.00
80,000.00 80,000.00
Bal b/d 15,500.00

Shop Fixtures a/c - Asset

15th From Mbao ltd 74,000.00 Bal c/d 74,000.00

Bal b/d 74,000.00

Pauline a/c - creditor

30th to the cash a/c 100,000.00

Bal c/d 100,000.00
100,000.00 100,000.00
Bal b/d 100,000.00

EXTRACT A TRIAL BALANCE

LEDGER ACCOUNTS
Bnak a/c
Cash a/c
capital a/c
Purchases a/c
Sales a/c
Motorvan
pauline a/c
Shop fixtures
Lions Investemnt
Victoria Furnitures
Wages a/c
 Bank a/c
Dta e Narrtaion amount date Narration
1st From capital 800,000.00 2nd to purchases
7th from sales 400,000.00 17th to Victoria furnitures
24th from Lions Investemr 64,500.00 31st to motorvan

Bal c/d
1,264,500.00
Bal b/d 344,500.00

Cash a/c
date Narration Amount
1st from cpaital 500,000.00 6th Paid to wages
5th from sales 500,000.00 9th paid to purchases
30th from pauline 100,000.00 12th paid wages
21st pay Mbao ltd
Bal c/d
1,100,000.00
Bal b/d 756,000.00

Capital a/c
Date Narrtaion
1st introduce cash at ban
1st intrduced cash at han
Bal c/d 1,300,000.00
1,300,000.00
Bal b/d

Purchases a/c
date Narration amount
2nd from bank 145,000.00
9th from cash 120,000.00
10th from vict Furntures 200,000.00 Bal c/d

465,000.00
Bal b/d 465,000.00

Sales a/c
Date Narration
5th to cash
 7th to bank a/c
13th to Lions Investement
Bal c/d 980,000.00
980,000.00
Bal b/d

MBAO LTD - creditor

2st pay from cash a/c 74,000.00 15th Shopd fxiture on cred

74,000.00

Motorvavn

31st From Bank 625,000.00 Bal c/d

625,000.00
Bal b/d 625,000.00

DEBIT CREDIT
344,500.00
756,000.00
1,300,000.00
465,000.00
980,000.00
625,000.00
100,000.00
74,000.00
15,500.00
50,000.00
150,000.00

2,430,000.00 2,430,000.00
amount
145,000.00
150,000.00
625,000.00

344,500.00
1,264,500.00

100,000.00
120,000.00
50,000.00
74,000.00
756,000.00
1,100,000.00

Amount
800,000.00
500,000.00

1,300,000.00
1,300,000.00

465,000.00

465,000.00

Amount
500,000.00
400,000.00
80,000.00

980,000.00
980,000.00

74,000.00

74,000.00

625,000.00

625,000.00