Page 81 - Book-keeping for Secondary Schools Student’s Book Form One

Recording of business transactions

7. Mpendaroho started a business several years ago. He did not keep proper books of
accounts. On 1 January 2023 he decided to start keeping records by following the
double entry system. From his previous memorandum records, could come up with
the following assets and liabilities:

TZS
FOR ONLINE READING ONLY
Cash in hand 300,000
Cash at bank 1,200,000
Accounts receivable - R. Bakora 240,000
C. Mkubwa 200,000
Accounts payable - A. Malenga 480,000
B. Swala 640,000
Inventory 250,000
Equipment 580,000
Shop fixtures and fittings 3,800,000
Motor vehicle 13,050,000
Premises 15,600,000

Required:
Enter the above balances in journal proper and calculate the amount of capital.

8. Show journal entries necessary to record the following transactions:
2022 April 1 Bought fixtures on credit from Ushirika Co. Ltd. TZS 135,000.
3 Bought Motor van on credit from Nyumbu Co. Ltd. TZS
75,000,000.
5 Bought additional fixtures on credit from Keko Traders TZS
2,150,000.
8 Purchased premises from Dina Ltd. on credit TZS 15,000,000.

9. Enter the following transactions into the sales journal of Akilimali for the month of
January 2023.

2023 January 1 Sold goods to Mama Eli, invoice number 06136:
16 national radios @ TZS 25,000.
25 record players @ TZS 12,000.

7 Sold goods on credit to Pombe worth TZS 20,000, invoice
number 06137:
10 Sold goods to Nusuhela, invoice number 06138:

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