20,400 7,300, wes Pranko tshs 500, and the firm has debts of tshs3000,
QUESTION THREE
Miss Porter's business position at 1 July was as follows:
Ou
tshs
Stock
5,000,000
ZOO
Equipment
3,700,000
Creditor (OK Ltd)
500,000
Debtor (AB Ltd)
300,000
Bank balance
1,200,000
During July, she made the following transactions:
Sold goods for cash - paid to bank
3,200,000
Sold goods to AB Limited
600,000
Bought goods from OK Ltd on credit 3,900,000
Paid OK Ltd by cheque
3,000,000
Paid general expenses by cheque
500,000
AB Ltd paid by cheque
300,000
Stock at 31 July
6,200,000
Required:
(a) Calculate the value of Capital at 1 July (b) Open ledger accounts and Record all
transactions (c) Prepare a trial balance (d) Prepare a trading and profit and loss account for
the period (e) Prepare a balance sheet at 31 July.​