Kandi completed her training as a lawyer in July. On 31 August 20X9 she began a new law practice by investing N$55000 in the bank account that was specifically opened for the business. She also brought into the business her new personal car which had a book value of N$250,000 as well as law books that she recently bought for N$4000. The following transactions relate to her first month in the law practice:
Sept 1 Rented an office paying N$18000 by cheque being three months rent in advance.
Bought office supplies for N$250 and paid by cheque
Bought office furniture on credit from Officenomix for N$20000
Cashed a cheque of N$20000 from the bank account, the funds to be used in the business
Bought law books for N$25000 from Butterworths paying N$5000 cash, the balance to be paid after six months.
Sept 5 Completed legal work for a client and immediately collected N$500 in cash for the work done.
Sept 7 Purchased office stationery for N$400 on credit from Waltons.
Sept 10 Completed legal work for Ndapewa a client on credit and billed her N$6000.
Sept 12 Purchased law books from Nexus Publishing on credit, N$2000.
Sept 15 Paid the salary of Mwazi a part time book keeper, N$3000.
Sept 17 Paid for office supplies purchased on 7 Sept by cash.
Sept 18 Completed legal work for Kaura a client on credit, N$4000
Sept 20 Received payment in full for the legal work completed on 10 Sept.
Sept 22 Completed additional legal work for a client Vincent on credit, N$3500.
Sept 27 Received payment in full for legal work completed on 18 Sept.
Sept 31 The business did not receive the telephone bill from Telecom Namibia for the month of September and the bookkeeper issued a cheque for N$800 as advance payment.
Paid the Sept electricity and water bill for September, N$800.
Paid the office secretary's salary, N$3000
Additional information:
The telephone bill for September was only received on October 5 20X9 and the charge for the month was N$500
The useful life of the car is estimated to be five years and it will have a trade-in value of N$50,000. The bookkeeper has decided to depreciate the car using the straight line method of depreciation. Depreciation is charged in the books of the law practice on monthly basis.
As at the end of September, Kandi had not yet paid the fourth year Law Intern she had hired from the law school at UNAM to help with some clerical work. They had agreed a monthly allowance of N$2000.
Taking into consideration the additional information given above and the full effect of all the transactions made during the month of September, you are required to:
a) Prepare the General Journal for Kandi Law Practice for the month of September, 20X9
b) Prepare the General Ledger Accounts for September
c) Prepare the Trial Balance as at 31 September 20X9

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