6. discuss five different ledgers that are commonly used to keep ledger accounts.\n7. outline six steps used…

6. discuss five different ledgers that are commonly used to keep ledger accounts.\n7. outline six steps used to prepare a trial balance.\n8. mutwol commenced business on 1.10.2015 with shs 50,000 in the bank and shs 10,000 worth of stock of goods for sale.\nthe following transactions took place during the month of october:\noctober 2: cashed cheques for office cash shs 2,500\n5: cash sales shs 18,000\n6: bought stationery for shs 2,000 cash\n8: paid rent by cheque shs 12,000\n10: bought goods for sale for shs 12,500 from joy on credit\n15: cash sales for shs 5,600, paid shs 400 into bank\n18: paid wages shs 1,100 by cash\n20: a customer bought goods worth shs 2,900 by cash\n22: sold goods for shs 8,000 to c. grant on credit\n26: paid joys account in full by cheque\n27: cash sales shs 2,700\n28: paid wages shs 1,100 by cheque\n29: paid all cash into bank, except shs 1,200.\ntask: post all the transactions above into mutwols books, balance and extract a trial balance on 31.10.2015. note; stock on 31st october was sh 6,000.
Answer
Explanation:
Step1: Set up opening balances
Cash - Bank: 50,000; Stock: 10,000
Step2: Record October 2 transaction
Debit Cash - Office: 2,500; Credit Cash - Bank: 2,500
Step3: Record October 5 transaction
Debit Cash - Office: 18,000; Credit Sales: 18,000
Step4: Record October 6 transaction
Debit Stationery Expense: 2,000; Credit Cash - Office: 2,000
Step5: Record October 8 transaction
Debit Rent Expense: 12,000; Credit Cash - Bank: 12,000
Step6: Record October 10 transaction
Debit Purchases: 12,500; Credit Joy (Creditor): 12,500
Step7: Record October 15 transaction
Debit Cash - Office: 5,600; Credit Sales: 5,600; Debit Cash - Bank: 400; Credit Cash - Office: 400
Step8: Record October 18 transaction
Debit Wages Expense: 1,100; Credit Cash - Office: 1,100
Step9: Record October 20 transaction
Debit Cash - Office: 2,900; Credit Sales: 2,900
Step10: Record October 22 transaction
Debit C. Grant (Debtor): 8,000; Credit Sales: 8,000
Step11: Record October 26 transaction
Debit Joy (Creditor): 12,500; Credit Cash - Bank: 12,500
Step12: Record October 27 transaction
Debit Cash - Office: 2,700; Credit Cash Sales: 2,700
Step13: Record October 28 transaction
Debit Wages Expense: 1,100; Credit Cash - Bank: 1,100
Step14: Record October 29 transaction
Debit Cash - Bank: (Total cash - 1,200); Credit Cash - Office: (Total cash - 1,200)
Step15: Calculate closing stock
Closing Stock: 6,000
Step16: Balance off accounts
Calculate balances for all accounts (assets, liabilities, income, expenses)
Step17: Extract trial - balance
List all debit and credit balances and ensure they are equal
Answer:
The trial - balance will be a list of all debit and credit balances of accounts as of 31.10.2015 with equal total debits and total credits after posting all transactions, balancing accounts and accounting for closing stock. The actual figures will depend on the cumulative calculations from the above steps for each account.