DISCUSSION QUESTIONS

1. For the following transactions state which accounts should be debited and which
should be credited.
a) Equipment bought on credit from M Sparks.
b) Motor car bought and payment made by cheque.
c) Owner pays own money into bank account.
d) Fixture sold on credit to J Miraj
e) Cheque sent to A Jonson, a creditor.
f) Cash received from P Mabeyo, a debtor.
2. Write up the following transaction in double entry accounts of J White.
1 March White places $900 of his own money into the cash till for business
Use.
4 March He places $500 of the cash into a business bank account.
8 March White buys $400 of machinery, paying by cheque.
12 March White buys shop fittings for $200 on credit from M Yeates.
13 March Machinery worth $200 is sold for the same value for cash.
19 March White decided to bring his own computer into the business at a
Valuation of $380.
20 March Office supplies bought for cash $500.
3. Prepare ledger accounts from the following transactions.
2023 January
1. Frank started business with cash 2,000,000 shillings, stock 700,000 shillings
and furniture 300,000.
2. Purchased goods from Jonson 1,000,000 shillings
3. Sold goods to Anas 1,600,000 shillings
4. Sold goods for cash 1,200,000 shillings
5. Purchased goods for cash 400,000 shillings
17. Paid to Jonson 720,000 shillings
25.Received from Anas 800,000 shillings
26. Withdrew for personal purpose 50,000
27. Received commission 90,000 shillings
28. Paid rent 110,000 shillings.
DISCUSSION QUESTIONS