What is a trial balance and what is its main purpose.

  On January 1^st 2015 Semolina Women Group started a business with a capital in cash of

2,000,000/=

January 2 Purchased goods for cash 1,400,000/=

3 Sold goods for cash 1,000,000/=

6 Purchased goods for cash 600,000/=

15 Paid rent for cash 220,000/=

26 Paid wages for cash 220,000/=

15 Sold goods for cash 620,000/= Prepare:

(i)  The cash account and balance it.

(ii)  The Trial Balance.

Given:

Opening stock 01-01-2012 34,430/=

Closing stock 31-12-2012 26,720/=

Net purchases during 2012 212,290/=

Expenses for the year 45,880/=

Gross Profit is 50% of cost of goods sold

Find: (i) Cost of goods sold (ii) The gross profit

(ii)  Prepare the balance sheet as at 30/06/2013

The following trial balance was extracted from the businessman books’ of Chericho Ramaji, at

31^st December 2006.

Prepare Trading, Profit and Loss account for the year ended 31^st December 2006.

  On 1 ^st June, 2013 Mrs. Lemisha started business with capital of 100,000/= and mad ehte following transactions

June 2 bought furniture 40,000/=

7 bought goods 70,000/=

11 sold goods 65,000/=

16 paid Sundry expenses 30,000/=

19 cash sales 80,000/=

24 paid wages 50,000/=

26 withdraw cash 30,000/=

(i)  Prepare the cash account

(ii) Prepare the balance sheet as at 30/06/2013

(iii) Explain the importance of the balance sheet you have prepared in part(ii) above.

What do the following terms mean as used in Accounts?

(i) Trading account

(ii) Profit and loss account

(iii) Balance sheet

(iv) Cash account

The following trial balance was extracted from the books of Nzilandodo on 31^st December 2005.

TX MARKET LTD TRIAL BALANCE AS AT 31.12.2005

Note: Stock at close 31^st December 7360. Required, prepare balance sheet as that date.

Kijembe started the business on 16^th March, 2020 with capital in cash 2,066,000/= March 17 bought goods for cash for 1,000,000/=

• 19 bought Shelves for cash 110,000/=
• 20 sold goods for cash 900,000/=
• 21 purchases goods for cash 800,000/=
• 22 sold goods for cash 1, 400,000/=
• 26 paid rent 300,000/=

Record the above transactions in Cash account ledger and extract a Trial balance.

Mr. Kijembe started business on 16^th March, 2011 with capital in cash 2,066,000/=

March 17 bought goods for Cash 1,000,000/=

19 bought shelves for Cash 1,100,000/=

20 sold goods for Cash 900,000/=

21 purchases for Cash 800,000/=

22 sold for Cash 1,400,000/= 26 paid Rent 300,000/=

Record the above transactions in a cash account ledger and extract a trial balance. State two uses of the trial balance you have prepared.

Mr. Chapakazi commenced business on 1^st June, 2011 with capital in cash 5,500,000/=

June 2 Bought goods by Cash 2,000,000/=

3 Bought furniture for Cash 600,000/=

7 Sold goods for Cash 2,000,000/=

11 Cash purchases 700,000/=

13 Paid Rent for Cash 2,000,000/=

16 Cash Sales 950,000/=

20 Paid Transport for Cash 80,000/=

22 Sold goods for cash 250,000/=

26 Paid salaries for Cash 160,000=

Record the above transactions in the cash account, balance them and extract the Trial Balance.

Mr. Chapakazi commenced business on 1^st June, 2011 with capital in cash 5,500,000/=

June 2 Bought goods by Cash 2,000,000/=

3 Bought furniture for Cash 600,000/=

7 Sold goods for Cash 2,000,000/=

11 Cash purchases 700,000/=

13 Paid Rent for Cash 2,000,000/=

16 Cash Sales 950,000/=

20 Paid Transport for Cash 80,000/=

22 Sold goods for cash 250,000/=

26 Paid salaries for Cash 160,000=

Record the above transactions in the cash account, balance them and extract the Trial Balance.

Determine the gross profit and the net profit from the information given below.

Sales 38,000/=

Opening stock 8,000/=

Purchases 25,000/=

Electricity 4,000/=

Discount allowed 2,000/=

Closing stock 5,000/=

The following balances were extracted from the ledgers of Mr. and Mrs. Mkomo business on 31st January. Prepare a trial balance.

Capital 30,000/= Insurance 3,000/=

Furniture 25,000/= Cash 18,000/=

Motor vehicle 45,000/= Discount received 7,000/=

Sales 68,000/= Discount allowed 4,000/=

Purchases 54,000/= Drawing 12,000/=

Creditors 76,000/= Electricity 5,000/=

Debtors 15,000/=

Study the given trial balance and answer questions that follow:

Trial Balance as of 31 December 2007

Prepare the following for the year ending 31 December 2007:

(a) Trading account?

(b) Profit and loss account?

(c) Balance sheet.

(a) Prepare the balance sheet for the balances given below

Capital 4,500,000/=

Drawings 800,000/=

Creditors 430,000/=

Closing stock 500,000/=

Debtors 800,000/=

Buildings 1,600,000/=

Motor Van 800,000/=

Bank 400,000/=

Cash 900,000/=

Net profit 270,000/=

Loan 600,000/=

(b) What is the aim of preparing balance sheet

From 1^st January to 29^th January 2006 Mr. Bin decided to keep records of his business as follows:

You are required to:

1. prepare the trial balance
2. open capital and cash account.

N.B All payments and receipts were made in cash. (10 marks)

(b) Halima started a business o 1^st September, 2018 with a capital of Tshs. 25,0001= in cash.

September 2, bought goods for cash 15,0001= 

3, sold goods for cash 3,0001=

5,  sold goods for cash 5,0001=

6, paid carriage on goods 5001=

9,sold goods for cash 14,000/=

15,  bought goods for cash I ,000/=

19 , paid rent 2,0001=

20, purchased goods 6,0001=

27, paid wages 5,000/=

28, sold goods on credit 1,000/= 

By using these transactions, prepare the cash account 

Extract a Trial Balance from the following Mabala’s cash account.

Use the following trial balance to prepare trading, profit and loss account of Mr.

Rwaichi as at 31^st December 2015

Mwanne commenced business on 1^st April, 2015 with capital in cash 200,000/=

April  2 bought goods for cash 100,000/=

3 bought goods for cash 300,000/=

4 purchased shelves for cash 230,000/=

5 sold goods for cash 400,000/=

9 paid wages for cash 50,000/=

12 purchased goods for cash 70,000/=

13 sold goods for cash 600,000/=

  16 paid rent for cash 100,000/=

20 bought goods for cash 60,000/=

   25 sold goods for cash 300,000/=

   27 paid salary for cash 70,000/=

Prepare the following:

(a) Cash account, (b) Trial balance.