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Hrd2118:Accounts And Finance Question Paper
Hrd2118:Accounts And Finance
Course:Bachelor Of Supplies Management
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE (20 MARKS)
a. Define the following terms as used in accounting: i. Noncurrent asset (2 Marks) ii. Current assets (2 Marks) iii. Liabilities (2 Marks) iv. Books of original entry (2 Marks) v. Imprest system (2 Marks) b. Discuss the advantages of maintaining a cash book (5 Marks) c. Discuss any two types of business organizations (5 Marks)
QUESTION TWO (20 MARKS)
The following transaction relate to Mono traders for the months of March 2005
March 1 bought goods for sh. 15,000 on credit from Kamau enterprise
5 returned goods sh. 3,000 to Kamau enterprise
20 sold goods to Beshir sh.20, 000 on credit
25 Bashir returned goods sh. 1,500
28 bought goods from Mbaka sh. 3,000 and was allowed 20% trade discount
31 sold goods to Mkulima shs. 3,000 and was allowed 10% discount
2
Required:
a. Record the above in the book of original entry (10 Marks) b. Post the entries to the general ledger (10 Marks)
QUESTION THREE (20 MARKS)
a. Explain four types of errors which are not disclosed by a trial balance (8 Marks) b. Describe the imprest systems of maintaining petty cash book (6 Marks) c. Distinguish between receipt and payment account and an income and expenditure account (6 Marks)
QUESTION FOUR (10 MARKS)
a. Explain the causes of difference between the balance as per bank statement and the balance as per cash book (3 Marks) b. Ouma and Waswa were partners in business. These partnership agreements provides for. 1. Profit and losses to be shared in the ration of 3.2 between Ouma and Waswa 2. Ouma to receive an annual salary of sh. 36,000 3. Interest to be allowed on capital at 10% per annum.
Capital and current account balances as at 31.12.2001 was as follows
Ouma (sh) Waswa (sh)
Capital 300,000 240,000
Current 50,000 40,000 On 1st October 2002 was admitted as a partner on the following terms
1. Gateri to introduce sh. 160,00 as his capital 2. Interest or capital to remain at 10% per annum 3. Profit and loss to be shared among Ouma , Waswa and Gateri in the ratio 2:2:1 respectively
Additional information
i. Drawing during the yea5r ended 31 December were as follows sh. Ouma 20,000 Waswa 15,000 Gateri 10,000 ii. The net profit for the year ended 31st December 2002 was sh. 160,000 and it accrued evenly throughout the year
Prepare:
3
a. Profit and loss appropriation accounts for the year ended 31st December 2002 (3 Marks) b. Partners current account (4 Marks)
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