Page 126 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Electricity expenses 326,400
Accounts payable (Creditors) 11,984,000

Balance at bank 11,160,000
Equipment 20,000,000
FOR ONLINE READING ONLY
Motor van 11,680,000
Motor running expenses 3,278,400

Capital 83,400,000
Stock at 1 December 2020 1,169,600
st
Discount received 2,339,200

Totals 270,443,200 270,443,200

Exercise 6.1

1. Why is the stock at 30 November 2021 not part of the trial balance?
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2. What are the alternative terms used to refer to debtors and creditors in accounting?
3. What is meant by drawings? Explain why drawings have a normal balance of
debit?

Example 6.2

Preparing a trial balance from a given list of transactions

Record the following transactions in the general journal, ledger accounts of Jamal for
January 2020, and then balance off the ledger accounts, and extract a trial balance as
at 31 January 2020.
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January 1 Started business by depositing cash in the bank account TZS 13,500,000
2 Purchased a business building from Kamara for TZS 7,500,000, paying
TZS 5,000,000 by cheque and promising to pay the balance as early as
possible next month
4 Purchased office furniture by cheque from John TZS 250,000
5 Purchased goods on credit from Madina TZS 500,000
8 Jamal added in the business TZS 600,000 by cheque
10 Sold goods to Mahinda on credit worth TZS 120,000

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Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 118 18/10/2024 10:14