BALANCING BOOKS OF ACCOUNTS
BALANCING ACCOUNTS. DEBITS ARE EQUAL TO CREDITS. BALANCES CAN BE CLEARED LATER AS ACCRUALS OR PREPAYMENTS.
BY MARK OLOO
MAY 2026
Conents
The books of accounts
The books of accounts, mine include mobile money can be used
to make decisions based on facts and figures.
The cash book
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CASH BOOK |
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Date |
Details |
Cash |
Bank |
Mpesa |
Date |
Details |
Cash |
Bank |
Mpesa |
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26/2026 |
Loan |
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400,000 |
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27/2026 |
Internet |
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4,000 |
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26/2026 |
Monthly Sales |
20,000 |
15,000 |
100,000 |
28/2026 |
Electricity |
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13,000 |
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31/2026 |
Mpesa |
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6,170 |
29/2026 |
Salaries |
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45,000 |
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30/2026 |
Rent |
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28,000 |
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31/2026 |
Mpesa Withdrawal |
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6,170 |
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Table 1.1 Cash Book of the Business
Expenses of the Business
Money received from sales and otherwise and Money out of
the business in form of expenses
Money into the business is a debit, or revenue that can be
used to incur expenses in the cause of running the business like getting
stocks, expenses like rent, salaries, electricity. Money into the business can
be cash, mpesa or cheques and sometimes even money transfers especially when a
large amount of money is being transacted into or out of the business.
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INTERNET COSTS |
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Date |
Details |
Cash |
Bank |
Mpesa |
Date |
Details |
Cash |
Bank |
Mpesa |
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27/2026 |
Internet |
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4,000 |
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ELECTRCITY
COSTS |
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Date |
Details |
Cash |
Bank |
Mpesa |
Date |
Details |
Cash |
Bank |
Mpesa |
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28/2026 |
Electricity |
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13,000 |
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INCOME STATEMENT
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Sales |
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200,000.00 |
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Opening
Stock |
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Add
Purchases |
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Goods
available for sale |
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Closing
Stock |
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Cost of
goods Sold |
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Gross
Profit |
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Expenses |
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Rent |
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Electricity |
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Salaries |
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Internet |
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The stock movement can provide opening and closing balances
of stock and changes in stock from purchases and sales. The profit obtained by
charging a higher price for making the goods available to the consumers can
have expenses deducted after obtaining gross profit, net profit is obtained and
the books of accounts can include sales and purchases whether cash or on
credit.
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SALES |
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Date |
Details |
Cash |
Bank |
Mpesa |
Date |
Details |
Cash |
Bank |
Mpesa |
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4/16/2026 |
MONTHLY SALES |
10 |
17 |
19 |
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PURCHASES |
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Date |
Details |
Cash |
Bank |
Mpesa |
Date |
Details |
Cash |
Bank |
Mpesa |
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4/16/2026 |
Purchased stocks for the next week |
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13 |
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The income statement can have information on expenses
provided above on Table 1.1 and 1.2.
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Fixed Assets |
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Land |
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Buildings |
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Motor Vehicles |
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Computers |
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Printers and Photocopiers |
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Phones |
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Laptops |
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Desks |
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Chairs |
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Current Assets |
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Stock |
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Debtors |
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Bank |
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KCB |
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Co-op |
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Cash |
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Prepayments |
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Current Liabilities |
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Accruals |
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Creditors |
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Short term loans |
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Share Capital |
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Long term debt |
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BALANCE SHEET
TRIAL BALANCE
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TRIAL BALANCE |
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Land |
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Buildings |
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Motor Vehicles |
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Computers |
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Printers and Photocopiers |
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Phones |
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Laptops |
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Desks |
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Chairs |
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Current Assets |
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Stock |
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Debtors |
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Bank |
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KCB |
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Co-op |
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Cash |
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Prepayments |
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Rent |
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Electricity |
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Salaries |
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Internet |
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