Page 128 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Being additional capital paid by cheque

10-Jan-20 Trade receivables 120,000
Sales 120,000
Being goods sold on credit
11-Jan-20 Purchases 240,000
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Trade payables 240,000
Being goods purchased on credit
12-Jan-20 Cash 130,000
Sales 130,000
Being goods sold in cash
14-Jan-20 Trade Payables 150,000
Purchases returns 150,000
Being goods returned to suppliers
15-Jan-20 Sales returns 10,000
Trade receivables 10,000
Being goods returned by customers
18-Jan-20 Trade Payables 350,000
Bank 350,000
Being cheque issued to pay creditors
20-Jan-20 Cash 80,000
Trade receivables 80,000
Being receivables collected in cash
24-Jan-20 Wages 50,000

Cash 50,000
Being wages paid in cash
26-Jan-20 Drawings 200,000
Bank 200,000
Being cash withdrawn for personal use
28-Jan-20 Cash 50,000
Rent income 50,000
Being rent income received in cash
31-Jan-20 Trade Payables 210,000
Bank 210,000
Being a cheque issued to pay creditors

Note: At this stage, you are not recording the account of an individual person, but collective
accounts are used, which are known as trade payables and receivables, as well as other
payables, in order to simplify the posting of the accounts balances to the trial balance.

120
Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 120 18/10/2024 10:14