Hps2103:Accounts And Finace Question Paper
Hps2103:Accounts And Finace
Course:Bachelor Of Computer Science
Institution: Meru University Of Science And Technology question papers
Exam Year:2012
QUESTION ONE (30 MARKS)
The following trial balance was extracted from the books of Antonio Juma, a sole trader as at 31 October, 2011.
Ksh. Ksh. Capital Drawings Sales Purchases Debtors and Creditors Rent and Rates Electricity Salaries and wages Provision for doubtful Debts ( 1 November, 2010) Stock in trade ( 1 November 2010) Insurance General Expenses Bank Balance Cash in Hand Motor vehicle at cost Provision for Depreciation ( Motor vehicle) 1 Nov. 2010) Proceeds from sale of Motor vehicle. Motor vehicle Expenses Premises ( at cost) Rent Received 128,880 3,726,060 476,160 52,800 14,760 496,080 556,440 10,320 55,980 90,000 4920 580,000 51,660 600,000 1,216,260 4,904,520 327,720 19,560 216,000 115,000 45,000
6,844,060 6,844,060 Additional Information:
(i) Stock in trade as at 31 October 2011 was valued at Ksh. 593,040. (ii) Rates and Insurance were prepaid to the extent of Ksh. 2400 and Ksh. 2,820 respectively as at 31 October, 2011. (iii) Electricity due as at 31 October 2011 amounted to Ksh. 6,000. (iv) The provision for doubtful debts is to be adjusted to 5% of the debtors remaining after taking into account that Ksh. 20,160 of the debtors were to be regarded as bad. (v) Rent receivable as at 31 October 2011 was Ksh. 15,000. (vi) Depreciation has been and is to be charged on motor vehicles at the rate of 20% per annum on straight line basis. No depreciation is to be charged on the premises. (vii) In November 2010, a Motor vehicle which had been purchased for Ksh. 160,000 on 1 November 2007 was sold for Ksh. 115,000. The only record for this disposal is the entry in the proceeds from sale of Motor vehicle account.
Required:
a) (i) A Trading and Profit and Loss Account for the year ended 31` October, 2011. (ii) A statement of financial position as at 31 October, 2011. (25 arks)
(b) Briefly explain the purposes of bank reconciliation statement. ( 5 Marks)
QUESTION TWO – (20 MARKS)
Susan Jerono`s cash book for the month of December, 2011 was as follows:
CASH BOOK
2011 Ksh. 2011 Cheque Ksh.
Dec. 1 Dec. 4 Dec. 9 Dec. 19 Dec. 24 Dec. 27 Dec. 29 Dec. 30
Balance b/d Solomon Otieno Kevin Kinoti Ronald Kiptoo Joyce Mwikali Ali Abdi Owen Dubi Smecter Njogu
186,200 21,200 18,500 11,800 4,700 27,900 9,800 13,400
293,500
Dec. 1 Dec. 2 Dec. 5 Dec. 6 Dec. 10 Dec. 14 Dec. 16 Dec. 20 Dec. 21 Dec. 21 Dec. 22 Dec. 31
Electricity Lanet Koko Jane Nyambura Wao Traders Jonathan Oduor Vickel Kanja Rent Lenana Ole Lanis Stella Muya Dan Dzombo
Bal. c/d
417864 417865 417866 417867 417868 417869 417870 417871 417872 417873
24,300 30,700 17,400 1,700 9,500 1,700 16,100 2,500 3,700 1,200
179,300 293,500
Required:
(i) Susan Jerono’s updated cash book as at 31 December, 2011. (ii) Susan Jerono’s bank reconciliation statement as at 31 December, 2011.
( 20 Marks)
QUESTION FOUR – (20 MARKS)
(a) Briefly explain the following accounting concepts (i) Going concern ( 2 Marks) (ii) Business entity ( 2 marks) (iii) Materiality ( 2 Marks) (b) Write short notes on four (4) users of accounting information. ( 4 marks)
The following particulars relate to Atomic Gonzales business for the month of July, 2012.
July 2012
1 Credit purchases: L. Mbuthia Ksh. 2,500
C. Imathiu Ksh. 1,450
M. Ali Ksh. 3,550
2. Credit sales S. Daudi Ksh. 4,100
J. Waweru Ksh. 3,400
P. Njiru Ksh. 2,700
7. Credit purchases A. Tim Ksh. 1,470
R. Mbuthia Ksh. 1000
C. Imathiu Ksh. 1900
18 Goods returned by Antonio to: R. Mbuthia Ksh. 350
C. Imathiu Ksh. 500
25 Goods returned to Antonio by; T. Waweru Ksh. 250
P. Njiru Ksh. 300
Required:
(a) Enter the above information in the books of original entry. ( 4 Marks) (b) Post the transactions in relevant ledgers. ( 6 Marks)
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