Page 134 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

While a balanced trial balance indicates overall accuracy, it does not pinpoint
specific errors. It acts as a useful tool for detecting certain types of mistakes, such as
transposition errors or omissions, but it may not identify more complex errors, such as
incorrect postings or compensating errors. As such, accountants should conduct further
analysis and reconciliation to ensure the integrity of financial records. The trial balance
FOR ONLINE READING ONLY
is an essential step in the accounting process and is typically prepared at the end of an
accounting period, aiding in the preparation of financial statements and providing a
starting point for more detailed financial analysis and decision-making.

Revision exercise 6

Enter the transactions in questions 1 - 5 in the general journal, post the entries to the
general ledger accounts, balance the accounts at the end of the respective months and
extract a trial balance as at the end of the month in each case.

1. Chipe’s transactions in the month of January 2022

TZS

January 1 Chipe commenced business with capital in cash 5,000,000
2 Purchased goods in cash 2,500,000

2 Bought goods on credit from Shilingi Store 1,500,000
3 Sold goods in cash 2,900,000

5 Purchased goods in cash 2,000,000
7 Paid Shilingi Store amount owing in cash 1,000,000

8 Bought packing material in cash 50,000
10 Paid advertising charges in cash 80,000
15 Sold goods in cash 3,200,000

17 Sold goods on credit to Maliatabu 1,200,000

20 Paid rent in cash 50,000
21 Purchased goods in cash 80,000
22 Paid wages in cash 60,000

25 Received cash from Maliatabu for settling amount 800,000
dues

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Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 126 18/10/2024 10:14