Page 102 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Posting from the general journal
Posting from the general journal follows what the journal entries have specified in terms
of accounts and amounts to be debited and credited for each individual transaction.
The postings are made straight to the general ledger. They do not include individual
accounts of creditors and debtors. This is because the individual accounts would be
handled by special journals and their respective postings to subsidiary ledgers. In case
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of entities that do not maintain special journals, posting from the general journal is
made to general ledgers, and the enterprise would maintain a separate memorandum
record of credit dealings with suppliers and customers. It is also important to note that
the posting of transactions from the general journal includes the posting from the cash
book (cash account, and bank account). Cash and bank accounts are also books of
prime entry.

Example 5.4

Enter the following transactions in the general journal and post the entries to the general
ledger up to 31 January 2020.
st
2020 January 1 Diana started a business by depositing TZS 2,000,000 into a
bank account.
4 Purchased machinery worth TZS 200,000 on credit from Alpha.
8 Purchased goods worth TZS 400,000 on credit from Julius.

12 Sold goods worth TZS 150,000 in cash.
16 Withdrew TZS 200,000 from the bank account for business use.

20 Sold goods to Tandahimba Ltd. worth TZS 50,000 on credit.
22 Returned goods worth TZS 15,000 to Julius because they were
of the wrong type.
23 Paid Julius TZS 200,000 by cheque.

24 Paid wages TZS 30,000 in cash.
26 Withdrew TZS 100,000 from the bank account for personal use.

27 Purchased goods from Frida worth TZS 150,000 promising to
pay for later.
28 Tandahimba Ltd., returned goods worth 5,000 because they had
expired.
29 Received rent in cash TZS 50,000.
30 Received payment by cheque from Tandahimba Ltd. TZS
20,000.

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Student’s Book Form One

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