... Giving examples, distinguish between debtor’s general ledger and debtor’s
subsidiary ledgers and explain why both ledgers are necessary.
(5 marks)
(c) The following transactions relate to James Opoka’s business for the month
of June, 2015.
Balances 1 June, 2015 Shs
Trade receivables:
Mary 1,500,000
Lawrence 2,000,000
Jena 1,084,000
Cash 850,000
Bank 1,040,000
Trade payables:
Jackson 504,880
Jennifer 560,540
Capital 5,408,580
During the year the following transactions took place:
(i) 2 June: purchased goods Shs 5,000,000 on credit from Mutaasa
Suppliers Limited.
(ii) 10 June: sold goods on credit to JM Enterprises Shs 3,000,000, JK
Investments Ltd Shs 5,000,000 and JML Limited Shs 8,000,000.
(iii) 14 June: Mary cleared her outstanding balance, paying by cash.
(iv) 15 June: paid Jennifer her outstanding balance in cash.
(v) 17 June: withdrew Shs 200,000 from the bank for business use.
(vi) 20 June: after negotiations with James, goods sold to JK Limited Shs
1,000,000 were returned for not conforming to specifications.
(vii) 21 June: sold his inherited land Shs 10,000,000 cash and put the
proceeds into the business.
(viii) 28 June: decided to use his personal vehicle valued at Shs
20,000,000 for transporting merchandise for customers.
(ix) 28 June: allowed JK Investments Limited 10% discount on their
outstanding balance for clearing before the agreed period, receiving
the payment by cheque.
Required:
Prepare general ledgers and trial balance as at 30 June, 2015.
(11 marks