Enter the above transactions in various ledger accounts and prepare a trial balance.

Here are the solutions to your questions:

3. (b) Enter the above transactions in various ledger accounts and prepare a trial balance.

Ledger Accounts

Cash Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 1 & Capital & 160,000 & Feb 2 & Bank & 100,000 \\ Feb 4 & Loan & 30,000 & Feb 3 & Building & 70,000 \\ & & & Feb 28 & Balance c/d & 20,000 \\ \hline & \textbf{Total} & \textbf{190,000} & & \textbf{Total} & \textbf{190,000} \\ \hline Mar 1 & Balance b/d & 20,000 & & & \\ \hline \end{array}$$

Bank Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 2 & Cash & 100,000 & Feb 5 & Purchases & 7,000 \\ & & & Feb 6 & Loan & 20,000 \\ & & & Feb 28 & Balance c/d & 73,000 \\ \hline & \textbf{Total} & \textbf{100,000} & & \textbf{Total} & \textbf{100,000} \\ \hline Mar 1 & Balance b/d & 73,000 & & & \\ \hline \end{array}$$

Capital Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 28 & Balance c/d & 160,000 & Feb 1 & Cash & 160,000 \\ \hline & \textbf{Total} & \textbf{160,000} & & \textbf{Total} & \textbf{160,000} \\ \hline & & & Mar 1 & Balance b/d & 160,000 \\ \hline \end{array}$$

Building Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 3 & Cash & 70,000 & Feb 28 & Balance c/d & 70,000 \\ \hline & \textbf{Total} & \textbf{70,000} & & \textbf{Total} & \textbf{70,000} \\ \hline Mar 1 & Balance b/d & 70,000 & & & \\ \hline \end{array}$$

Loan Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 6 & Bank & 20,000 & Feb 4 & Cash & 30,000 \\ Feb 28 & Balance c/d & 10,000 & & & \\ \hline & \textbf{Total} & \textbf{30,000} & & \textbf{Total} & \textbf{30,000} \\ \hline & & & Mar 1 & Balance b/d & 10,000 \\ \hline \end{array}$$

Purchases Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 5 & Bank & 7,000 & Feb 28 & Balance c/d & 7,000 \\ \hline & \textbf{Total} & \textbf{7,000} & & \textbf{Total} & \textbf{7,000} \\ \hline Mar 1 & Balance b/d & 7,000 & & & \\ \hline \end{array}$$

Debtors Account (Accounts Receivable)

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 6 & Sales & 1,500 & Feb 28 & Balance c/d & 1,500 \\ \hline & \textbf{Total} & \textbf{1,500} & & \textbf{Total} & \textbf{1,500} \\ \hline Mar 1 & Balance b/d & 1,500 & & & \\ \hline \end{array}$$

Sales Account

$$\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (Ksh)} \\ \hline Feb 28 & Balance c/d & 1,500 & Feb 6 & Debtors & 1,500 \\ \hline & \textbf{Total} & \textbf{1,500} & & \textbf{Total} & \textbf{1,500} \\ \hline & & & Mar 1 & Balance b/d & 1,500 \\ \hline \end{array}$$

Trial Balance as at February 28, 2022

$$\begin{array}{|l|r|r|} \hline \textbf{Account Name} & \textbf{Debit (Ksh)} & \textbf{Credit (Ksh)} \\ \hline Cash & 20,000 & \\ Bank & 73,000 & \\ Capital & & 160,000 \\ Building & 70,000 & \\ Loan & & 10,000 \\ Purchases & 7,000 & \\ Debtors & 1,500 & \\ Sales & & 1,500 \\ \hline \textbf{Total} & \textbf{171,500} & \textbf{171,500} \\ \hline \end{array}$$

4. (a) Explain five current trends in product promotion.

• Digital Marketing: This involves using online channels such as social media, search engines, email, and websites to promote products and reach target audiences.
• Influencer Marketing: Businesses collaborate with individuals who have a significant following and credibility in a specific niche to endorse or promote their products.
• Content Marketing: This trend focuses on creating and distributing valuable, relevant, and consistent content (like blogs, videos, or infographics) to attract and retain a clearly defined audience.
• Personalization: Promotional messages and offers are tailored to individual customers based on their data, preferences, and past behavior, making promotions more relevant.
• Experiential Marketing: This involves creating immersive and interactive brand experiences, such as pop-up shops, events, or virtual reality experiences, to engage customers directly.

4. (b) Explain five features of money as a medium of exchange.

• Acceptability: Money must be generally accepted by everyone in an economy as a means of payment for goods and services.
• Divisibility: Money should be easily divisible into smaller units without losing its value, allowing for transactions of varying amounts.
• Portability: Money should be easy to carry and transport, making it convenient for people to use in daily transactions.
• Durability: Money must be able to withstand wear and tear from frequent handling and last for a reasonable period without deteriorating.
• Scarcity: Money must be limited in supply to maintain its value and prevent inflation, ensuring it remains a reliable store of value.