In September 2010, Mr. Bamaba Munubo organized a dance in ad of his trip lo India for further studies. His cousin Zabulon Munube lent him Shs. 20,060 to meet the expenses for the dance. On 1,4 September 2010, he opened a bank account and deposited She. 15,000 in the account Cn 301. September 2010, ((lowing a successful dance on 22th September 2010, he was able to produce the following records.
September,
1st paid in cash for postage and telephone Shs. 460
5th. Donations were received as folbws:-
- John Metho - Shs. 365 by cheque
- Aba Church Chop - Shs. 4,700 in cash - Peter Some - Shs. 2.000 by cheque
10th Hired Hall and paid Shs. 2,500 by cheque
12th Paid Shs. 120 in cash and She. 275 by cheque to Kenya Printers for printing dance tickets and posters
15th Hired Nyakalondo Band She. 1,600 and gave them a cheque for the same amount
18th Bought drinks worth Shs. 5,500 on credit from S. Noir
22nd Received gate collections as follows:-
- Cash - Shs. 4,800
- Cheques - Shs. 25,000
24th Sofi drinks- She. 12,000 and returned drinks worth Shs. 850 to & Ngige
26th, Lodged Shs. 10,000 ki Bank
27th Paid S. Ngige Shs. 4,500 in full settlement less Shs. 150 cash discount
28t1 Paid for air ticket Stn. 4,600 cash
29th Cheque received from John Metho was returned unpaid by the Bank
29th Paid casuals Shs. 3,600 in cash
Required:-
Enter the above transaction into the appropriate ledger accounts, balance the accounts anti extract a trial balance as at 30th September 2010.
Question Two:
S. Warrirou's Trial Balance as at 31st December 2010 did not balance. The debits were more than the credits by Sits. 360 which she posted in the suspense amount.
The following errors vitith accounted for the difference in the suspense account were subsequently discovered
A loss in the sale of an chi motor vehicle Shs. 360 had been correctly entered in the motor vehicle account but had been erroneously charged to deprecialicn as Shs. 630
(ii) Bank charges of Shs. 210 had been correctly entered in the cash book but the doubts entry had not been completed in the accounts.
(60 A purchase of an office equipment had been correctly entered in the cash book as Shs. 7,580 but irraectly entered in the furniture and fittings as She. 1,980. cry) Sale of goals to a customer for Shs. 1,380 %vas correctly entered in the sales book but was entered in the customer's account as Shs. 1.920.
(v) A credit note of Shs. 510 was received from a creditor and correctly entered In the return outward book but posted to the creditors account as Shs. 570.
(1) A debit balance of Shs. 3,660 in the sales ledger as al 31" December 2010 had been wrongly miniml down as Shs. 3,960 and inciuded in the Trial balancer at this figure.
Required:-
(a) The necessary jcumal Dittoes to correct the errors
(b) Suspense Account duty balanced