Prepare it into balance sheet
This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
To prepare the balance sheet, we first need to calculate the closing balances for all assets, liabilities, and capital by adjusting the opening balances with the transactions that occurred during October.
Step 1: Calculate the closing balance for each account.
Cash:
Opening Balance: Ksh 100,000
Oct 1 (Additional capital): +Ksh 30,000
Oct 6 (Drawings): -Ksh 8,000
Oct 7 (Ali paid): +Ksh 5,000
Oct 8 (Rent paid): -Ksh 4,000
Oct 9 (Salaries
