Prepare a three-column cashbook for Kieni Traders for May 2022, including discounts.

Here is the duly balanced three-column cashbook for Kieni Traders for the month of May 2022.

$$\textbf{Kieni Traders} \\ \textbf{Three Column Cashbook} \\ \textbf{For the month of May 2022}$$

Date	Details	Folio	Discount Allowed (Shs.)	Cash (Shs.)	Bank (Shs.)	Date	Details	Folio	Discount Received (Shs.)	Cash (Shs.)	Bank (Shs.)
2022						2022
May 1	Balance b/d			25,000.00		May 1	Balance b/d				15,000.00
May 3	Kipkirui		2,000.00		10,000.00	May 5	Rent			5,000.00
May 6	Bank (C)	C			2,000.00	May 6	Cash (C)	C		2,000.00
May 8	Kamau			6,000.00		May 15	Furniture				2,000.00
May 10	Wanjiku		3,000.00		12,000.00	May 25	Bank (C)	C		34,732.50
May 16	Capital				7,000.00
May 23	Kertich		380.00	7,220.00
May 23	Brian		237.50	4,512.50
May 25	Cash (C)	C			34,732.50
						May 31	Balance c/d			1,000.00	48,732.50
Totals			5,617.50	42,732.50	65,732.50	Totals			0.00	42,732.50	65,732.50
June 1	Balance b/d			1,000.00	48,732.50

Explanation of calculations:

• May 1: Opening cash balance is debited. Opening bank overdraft is credited.
• May 3: Kipkirui settled an account of Sh 12,000 by cheque of Sh 10,000. This means a discount of Sh 2,000 (12,000 - 10,000) was allowed. The bank account is debited with Sh 10,000, and discount allowed is debited with Sh 2,000.
• May 5: Rent paid by cash is a cash outflow, so the cash account is credited.
• May 6: Cash deposited into the bank is a contra entry (C). Cash account is credited, and bank account is debited.
• May 8: Cash received from Kamau is a cash inflow, so the cash account is debited.
• May 10: Wanjiku settled an account of Sh 15,000 with a 20% discount. Discount allowed = $0.20 \times 15,000 = Sh 3,