The image contains a series of business transactions recorded in a ledger format, not a specific homework…

Question

The image contains a series of business transactions recorded in a ledger format, not a specific homework question.

ScanSolve AI Tutor · Accepted Answer

Here are the journal entries for the transactions provided:

Analyze each transaction and identify the accounts affected.
Determine whether each account is debited or credited.
Record the journal entries.
- Jan 1: Mulenga started business with cash K50,000.
  
  Cash (Asset) increases, Capital (Equity) increases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 1} & \text{Cash} & 50,000 & \\ & \quad \text{Capital} & & 50,000 \\ & \text{(To record initial capital contribution)} & & \\ \end{array}$
- Jan 2: Deposited K30,000 into the business bank account.
  
  Bank (Asset) increases, Cash (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 2} & \text{Bank} & 30,000 & \\ & \quad \text{Cash} & & 30,000 \\ & \text{(To record cash deposited into bank)} & & \\ \end{array}$
- Jan 3: Bought goods for cash K10,000.
  
  Purchases (Expense) increases, Cash (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 3} & \text{Purchases} & 10,000 & \\ & \quad \text{Cash} & & 10,000 \\ & \text{(To record cash purchase of goods)} & & \\ \end{array}$
- Jan 5: Bought goods on credit from Banda K10,000.
  
  Purchases (Expense) increases, Accounts Payable (Banda) (Liability) increases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 5} & \text{Purchases} & 10,000 & \\ & \quad \text{Accounts Payable (Banda)} & & 10,000 \\ & \text{(To record credit purchase from Banda)} & & \\ \end{array}$
- Jan 7: Sold goods for cash K15,000.
  
  Cash (Asset) increases, Sales (Revenue) increases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 7} & \text{Cash} & 15,000 & \\ & \quad \text{Sales} & & 15,000 \\ & \text{(To record cash sales)} & & \\ \end{array}$
- Jan 10: Sold goods on credit to Chanda K10,000.
  
  Accounts Receivable (Chanda) (Asset) increases, Sales (Revenue) increases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 10} & \text{Accounts Receivable (Chanda)} & 10,000 & \\ & \quad \text{Sales} & & 10,000 \\ & \text{(To record credit sales to Chanda)} & & \\ \end{array}$
- Jan 12: Paid rent by cheque K2,000.
  
  Rent Expense (Expense) increases, Bank (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 12} & \text{Rent Expense} & 2,000 & \\ & \quad \text{Bank} & & 2,000 \\ & \text{(To record rent paid by cheque)} & & \\ \end{array}$
- Jan 15: Returned goods to Banda K1,000.
  
  Accounts Payable (Banda) (Liability) decreases, Purchases Returns (Contra-expense) increases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 15} & \text{Accounts Payable (Banda)} & 1,000 & \\ & \quad \text{Purchases Returns} & & 1,000 \\ & \text{(To record goods returned to Banda)} & & \\ \end{array}$
- Jan 18: Chanda returned goods worth K1,000.
  
  Sales Returns (Contra-revenue) increases, Accounts Receivable (Chanda) (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 18} & \text{Sales Returns} & 1,000 & \\ & \quad \text{Accounts Receivable (Chanda)} & & 1,000 \\ & \text{(To record goods returned by Chanda)} & & \\ \end{array}$
- Jan 20: Paid Banda by cheque K9,800 in full settlement of his account of K10,000.
  
  Accounts Payable (Banda) (Liability) decreases by K10,000, Bank (Asset) decreases by K9,800, Discount Received (Contra-expense) increases by K200.
  
  (Note: This entry assumes the K10,000 refers to the liability being settled, and a discount of K200 was received. This interpretation is common in accounting problems for "full settlement" scenarios, even if it creates an inconsistency with the Jan 15 return which would have reduced the payable to K9,000.)
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 20} & \text{Accounts Payable (Banda)} & 10,000 & \\ & \quad \text{Bank} & & 9,800 \\ & \quad \text{Discount Received} & & 200 \\ & \text{(To record payment to Banda with discount)} & & \\ \end{array}$
- Jan 22: Received K8,800 by cheque from Chanda in full settlement of his account of K9,000.
  
  Accounts Receivable (Chanda) balance was K10,000 (Jan 10) - K1,000 (Jan 18) = K9,000.
  
  Bank (Asset) increases by K8,800, Discount Allowed (Expense) increases by K200, Accounts Receivable (Chanda) (Asset) decreases by K9,000.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 22} & \text{Bank} & 8,800 & \\ & \text{Discount Allowed} & 200 & \\ & \quad \text{Accounts Receivable (Chanda)} & & 9,000 \\ & \text{(To record cash received from Chanda with discount)} & & \\ \end{array}$
- Jan 25: Paid wages in cash K3,000.
  
  Wages Expense (Expense) increases, Cash (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 25} & \text{Wages Expense} & 3,000 & \\ & \quad \text{Cash} & & 3,000 \\ & \text{(To record wages paid in cash)} & & \\ \end{array}$
- Jan 28: Bought office stationery for cash K500.
  
  Stationery Expense (Expense) increases, Cash (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 28} & \text{Stationery Expense} & 500 & \\ & \quad \text{Cash} & & 500 \\ & \text{(To record purchase of stationery for cash)} & & \\ \end{array}$
- Jan 30: The owner withdrew K1,500 cash for personal use.
  
  Drawings (Contra-equity) increases, Cash (Asset) decreases.
  
  $\begin{array}{l l r r} \text{Date} & \text{Account} & \text{Debit (K)} & \text{Credit (K)} \\ \text{Jan 30} & \text{Drawings} & 1,500 & \\ & \quad \text{Cash} & & 1,500 \\ & \text{(To record owner's cash drawings)} & & \\ \end{array}$

The image contains a series of business transactions recorded in a ledger format, not a specific homework question.

Step-by-step solution

Analyze each transaction and identify the accounts affected.

Determine whether each account is debited or credited.

Record the journal entries.

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