Extract the accounting entries from the provided image.

Question

ScanSolve AI Tutor · Accepted Answer

Your current entries for R Banda, E Tobwa, and C Chola accounts are incorrect. When a debtor pays their account, their individual account in the ledger should be credited to reduce the amount they owe. The debit side of their account would show the original amount they owed. The Rent account is an expense, so it is debited when paid.

Here are the corrected and completed ledger accounts:

Correct R Banda Account.
R Banda's original debt was K2,240,000. They paid K2,128,000 and received a discount of K112,000.
$\begin{array}{|l|l|r||l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Dr (K)} & \textbf{Date} & \textbf{Particulars} & \textbf{Cr (K)} \\ \hline \text{Mar 1} & \text{Balance b/d} & 2,240,000.00 & \text{Mar 2} & \text{Bank} & 2,128,000.00 \\ & & & \text{Mar 2} & \text{Discount Allowed} & 112,000.00 \\ \hline \textbf{Totals} & & \textbf{2,240,000.00} & \textbf{Totals} & & \textbf{2,240,000.00} \\ \hline \end{array}$
Correct E Tobwa Account.
E Tobwa's original debt was K3,520,000. They paid K3,344,000 and received a discount of K176,000.
$\begin{array}{|l|l|r||l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Dr (K)} & \textbf{Date} & \textbf{Particulars} & \textbf{Cr (K)} \\ \hline \text{Mar 1} & \text{Balance b/d} & 3,520,000.00 & \text{Mar 2} & \text{Bank} & 3,344,000.00 \\ & & & \text{Mar 2} & \text{Discount Allowed} & 176,000.00 \\ \hline \textbf{Totals} & & \textbf{3,520,000.00} & \textbf{Totals} & & \textbf{3,520,000.00} \\ \hline \end{array}$
Correct C Chola Account.
C Chola's original debt was K4,800,000. They paid K4,560,000 and received a discount of K240,000.
$\begin{array}{|l|l|r||l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Dr (K)} & \textbf{Date} & \textbf{Particulars} & \textbf{Cr (K)} \\ \hline \text{Mar 1} & \text{Balance b/d} & 4,800,000.00 & \text{Mar 2} & \text{Bank} & 4,560,000.00 \\ & & & \text{Mar 2} & \text{Discount Allowed} & 240,000.00 \\ \hline \textbf{Totals} & & \textbf{4,800,000.00} & \textbf{Totals} & & \textbf{4,800,000.00} \\ \hline \end{array}$
Complete Rent Account.
Rent of K1,920,000 was paid through the bank on March 4.
$\begin{array}{|l|l|r||l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Dr (K)} & \textbf{Date} & \textbf{Particulars} & \textbf{Cr (K)} \\ \hline \text{Mar 4} & \text{Bank} & 1,920,000.00 & \text{Mar 31} & \text{Balance c/d} & 1,920,000.00 \\ \hline \textbf{Totals} & & \textbf{1,920,000.00} & \textbf{Totals} & & \textbf{1,920,000.00} \\ \hline \text{Apr 1} & \text{Balance b/d} & \textbf{1,920,000.00} & & & \\ \hline \end{array}$

Extract the accounting entries from the provided image.

Step-by-step solution

Correct R Banda Account.

Correct E Tobwa Account.

Correct C Chola Account.

Complete Rent Account.

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