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Knec Hospitality Accounting And Law October/November 2015 Question Paper

Knec Hospitality Accounting And Law October/November 2015

Course:Diploma In Food And Beverage Production, Service And Sales Management Module Ii

Exam Year:2015

Name...........................................................
Index No..........................................................
2802/201
HOSPITALITY ACCOUNTING
AND LAW
Candidate’s signature:..........................
Oct/Nov.2015
Time:3 hours
Date: ..........................

THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN FOOD AND BEVERAGE PRODUCTION,SERVICE AND SALES
MANAGEMENT
MODULE II
HOSPITALITY ACCOUNTING AND LAW
3 hours
INSTRUCTIONS TO CANDIDATES
Write your name and index number in the space provided above.
Write the date of examination and sign in the space provided above.
This paper consists of TWO sections A and B.
Answer questions ONE and any other TWO questions from section B in the space provided.
Maximum marks for each part of a question are indicated.
Candidates should answer the questions in English.
Image
This paper consists of 16 printed pages.
Candidates should check the question paper to ascertain that all the pages are printed as indicated and that no questions are missing.

SECTION A: LAW THEORY (4O MARKS)
Answer question ONE and any other TWO questions in this section.
1. (a) Explain two general concepts of law.
(2 marks)
(b)Highlight the statutes in the current law of Kenya that have been influenced by African Customary Law.
(4 marks)
(c) Describe the TWO aspects of case law.
(4 marks)
(d) Differentiate between undue influence and Duren as stated in the law of contract.
(4 marks)
(e) Expain TWO general defences under the law tort.
(4 marks)
2. (a) Describe three forms of defences to defamation.
(6 marks)
(b) Njeri has been an employee of Kula Hotel Limited under permanent terms.After 5 years her contract was terminated on medical grounds.Identify the remedies due to Njeri.
(4 marks)
3. (a) Enumerate four duties of a partnership business.
(4 marks)
(b) State six rights dude to partner in a partnership business.
(6 marks)

4. (a) Njoroge, a taxi operator was contracted by John Smith, British tourist to provide a tour van. Upon arrival in Nairobi,John Smith was provided with a saloon car which he declined and sued Njoroge seeking refund.Discuss Njoroge’s position in law.

(6 marks)
(b) Describe two offences related to the sale of food under the food, drugs and chemical substances Act.
(4 marks)

SECTION B:(60 MARKS)
Answer question five and any other four questions from this section.
5. (a) (i) Describe two objectives of accounting in the hospitality industry.
(2 marks)

(ii) Most hotels are adopting computerized accounting systems.Explain two advantages of using computers.
(2 marks)
(b) (i) Identify the accounting documents used to record the following transaction:
I. Credit sale to a customer;
II. Cash purchase of food supplies;
III. Cash sale to a customer;
IV. Cheque payment to a creditor
(2 marks)
(ii) State two reasons why sources documents are necessary in accounting for a hotel.
(2 marks)
(c) The following balances were extracted from the records of Beachline Golf and Resort Club on 31.12.2012.
--------------(Shs.)
Subscription in arrears 1.1.2012.......56,300
Subscription received in 2012.........1,264,450
Subscription received in advanced...264,310
Subscription in arrears.....................342,120
Subscription in advance 31.12.2012....194,200

Prepare the subscription account for Beachline Gold and Resort Club for 2012.
(4 marks)

(d) (i) Differentiate between a cash discount and a trade discount.
(2 marks)
(ii) State in which ledger the two discounts above are recorded.
(2 marks)
(e) Choma Quick Bar and restaurant had the following assets and liabilities on 1st January 2013.
Shs. Shs.
Stock (Drinks/ Beverages) 175,110 Motor vehicles 784,900
Food supplies Stock 62,100 Trade creditors 102,500
Fixtures and fittings 413,600 Trade debtors 70,000
Kitchen equipment 210,200 Bank loan 940,000
Computers 103,200 Bank overdraft 126,300
Cash 42,400
Prepare the balance sheet for choma Quick Bar and Restaurant.
(4 marks)

6. The accounting of Safari Tented Camp prepared the Trial Balance on 30th June 2013 which did not agree. On further investigation, the following error were discovered:
i. Salaries advances of Ksh.33,400 had not been recorded in the salaries account.
ii. Sales by cash Ksh.106,800 had been completely omited from the records.
iii. Purchases had been overcast by Ksh.71,600.
iv. Cheque deposit of Ksh .84,000 was recorded on the credit side of the cash book.
v. Purchase of motor vehicle Ksh.625,000 had been recorded in the purchases account.
a) Prepare the journal entries to correct the errors
(6 marks)
b) Record the suspense account and balance it.
( 4 marks)

7. The recipt and payments account of Kata Kauli Social Club for the year ended 31.12.2013 was has follows:
KATA KAULI SOCIAL CLUB
RECEIPT AND PAYMENTS ACCOUNT

Additional information
Balances appearing in the records were as follows:

----1.1.2013 --------------------------------------31.12.2013
Sh.------------------------------------Sh.
Subscriptions accrued------106,200-------subscription accrued-----101,000
Subscription paid in advance---174,000---Subscription paid in advance---98,200
Equipment (Writen down value)----709,000
Premises------------------2,560,000

Equipment is depreciated at 10% p.a on the Written Down value.
(a) Prepare the statement of affairs as at 1.1.2013
(4 marks)
(b) Prepare the income to expenditure account for the year.
(6 marks)
8. Kiringa Banda & Villas has been operating for several years along ,the Indians ocean.The hotel had the following balances on 1st January 2013.

-----------Ksh’000
Capital---42,140
Building-----40,000
Trade debtors---1,400
Trade creditors----2,300
Stock------1,700
Cash at bank----1,340
The following transaction took place during the month of January 2013.
i. Constructed 2 bandas at a cost of Ksh.800,000 each
ii. Received Ksh.780,000 from debtors and made credit sales of Ksh.314,000.
iii. Creditors were paid Ksh. 900,000 by cheque while purchases on credit amounted to Ksh.400,000
iv. Cash received from sales amounted to Ksh.1,200,000
v. Loan borrowed from KTDC amounted to Ksh.5,000,000

Prepare the balance sheet after the above transactions
(10 marks)
9. Kitu Traders extracted the following information from its saales ledger on January 21,2013.
Prepare the sales ledger control account.
(10 marks)

10. The balances appearing in the books of Kajuju Academy on 31.12.2013 as follows:

Additional information
i. School equipment is depreciated at 10% p.a on the Net book value,motor vehicles at 15% p.a on cost.
ii. Bad debts on school fees were Ksh 34,200 for the year.
iii. Rates owing as at 31.12.2013 were Ksh 14,200.
Prepare the profit and loss account for Kajuju Academy for the year ended 31.12.2013.
(10 marks)

Knec Hospitality Accounting And Law October/November 2015 Question Paper

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