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i). “exchange difference” – an exchange difference is a difference that arises on the transaction of are currency into another currency at different exchange rates.
ii). The exchange difference to be charged in the P&L a/c is that exchange difference for a foreign entity which is considered to be non- autonomous.
-The exchange difference to be considered as a component of equity in the balance sheet is
for that foreign that is considered to be an independent or autonomous entity.
Wilfykil answered the question on February 11, 2019 at 11:10
- Determine:
(i) Branch inventory accounts
(ii) Branch mark-up accounts
(iii) Branch debtors accounts
(iv) Branch cash accounts(Solved)
Sellwell Ltd operates a supermarket chain with a head office in Nairobi and branches in Meru and Eldoret.
Goods are transferred from the head office to Meru Branch at a mark-up of 25% and to Eldoret branch at a gross profit margin of 25%. The branches do not maintain separate books of accounts.
The following information relates to the transaction at both branches during the year ended 31 March 2008
Date posted: February 11, 2019. Answers (1)
- Briefly explain four purposes of the branch accounts to an organisation which sells goods through various outlets(Solved)
Briefly explain four purposes of the branch accounts to an organisation which sells goods through various outlets
Date posted: February 11, 2019. Answers (1)
- The trial balances below were extracted from the books of Shakers Enterprises with respect to its operations at the head office in Nakuru and Busia branch as at 30 April 2010.(Solved)
The trial balances below were extracted from the books of Shakers Enterprises with respect to its operations at the head office in Nakuru and Busia branch as at 30 April 2010.
Date posted: February 11, 2019. Answers (1)
- Determine:
i) Branch translated trial balance as at 31 March 2012.
ii) Head office and branch income statements, in columnar format, for the year ended 31 March...(Solved)
Elgon Ltd., a manufacturing concern, exports some of its products through an overseas branch whose currency is the "Mil". The reporting currency of Elgon Ltd. is the Kenya Shilling (Ksh.). The overseas branch carries out the final assembly for the products before the goods are sold to customers. The trial balances of the head office and overseas branch as at 31 March 2012 was as follows;-
Date posted: February 11, 2019. Answers (1)
- In the context of International Accounting Standard (IAS) 21, The Effects of Changes in Foreign Exchange Rates:
i) Define monetary items.
ii) Explain how foreign currency monetary...(Solved)
In the context of International Accounting Standard (IAS) 21, The Effects of Changes in Foreign Exchange Rates:
i) Define monetary items.
ii) Explain how foreign currency monetary and non-monetary items are translated at the
end of each reporting period.
Date posted: February 11, 2019. Answers (1)
- In the context of non-autonomous branches, describe the accounting treatment in the books of the head office of the following items.
(i) Goods stolen in transit
(ii)...(Solved)
In the context of non-autonomous branches, describe the accounting treatment in the books of the head office of the following items.
(i) Goods stolen in transit
(ii) Mark-ups and mark-downs in prices.
Date posted: February 11, 2019. Answers (1)
- Determine:
(a) Profit and loss account for the year ended 31 October 2002.
(b) Balance sheet as at 31 October 2002.(Solved)
Given below is a trial balance extracted from the books of Kamau and Nyambati, a firm of practicing advocates as at 31 October 2002:
Date posted: February 11, 2019. Answers (1)
- Briefly explain the following terms as used in the accounts of professional practitioners:
(i) Office account
(ii) Client account
(iii) Costs charged to clients
(iv) Work-in-progress.(Solved)
Briefly explain the following terms as used in the accounts of professional practitioners:
(i) Office account
(ii) Client account
(iii) Costs charged to clients
(iv) Work-in-progress.
Date posted: February 11, 2019. Answers (1)
- Determine:
a) Profit and loss account for the year ended 30th April 2007.
b) Balance sheet as at 30th April 2007.(Solved)
The following is the balance sheet of Maena and Company Advoactes, a small size law firm, as at 30 April 2006:
Date posted: February 11, 2019. Answers (1)
- Determine:
a) Statement of comprehensive for the year ended 31 December 2008.
b) Statement of financial as at 31 December 2008(Solved)
The following list of balances was extracted from the books of Mwananchi Bank Ltd as at 31 December 2008.
Date posted: February 11, 2019. Answers (1)
- Determine:
i) Income statement for the year ended 31 December 2012.
ii) Statement of financial position as at 31 December 2012.(Solved)
The following financial information was extracted from the books of Zuraya commercial Bank Ltd. as at 31 December 2012.
Date posted: February 11, 2019. Answers (1)
- Determine:
i). Revenue accounts for both marine and fire insurance for the year ended 31 October 20008.
ii). Profit and loss account for the year ended 31...(Solved)
Bima Insurance Ltd specializes in general insurance business. The following trial balance was extracted from the books of the company as at 31 October 2008.
Date posted: February 11, 2019. Answers (1)
- Explain the meaning of the following terms as used in insurance business
i) Bonus in reduction of premium.
ii) Surrender value(Solved)
Explain the meaning of the following terms as used in insurance business
i) Bonus in reduction of premium.
ii) Surrender value
Date posted: February 11, 2019. Answers (1)
- Determine:
i). Revenue accounts for the year ended 31 December 2008
ii). Income statement for the year ended 31 December 2008
iii). Statement of financial position as at...(Solved)
Date posted: February 11, 2019. Answers (1)
- Determine:
a) Fire and marine insurance revenue account for the year ended 31 October 2010
b) Statement of comprehensive income for the year ended 31 October 2010
c)...(Solved)
The following trial balance was extracted from the books of Umoja Insurance Company limited as at 31 October 2010
Date posted: February 11, 2019. Answers (1)
- Explain the following terms
(i) Insurance contract.
(ii) Commission ceded
(iii) Surrender value
(iv) Endowment policy(Solved)
Explain the following terms
(i) Insurance contract.
(ii) Commission ceded
(iii) Surrender value
(iv) Endowment policy
Date posted: February 11, 2019. Answers (1)
- Determine:
a) Crop account, poultry account and dairy account for the year ended 31 March 203.
b) General profit and loss account for the year ended 31st...(Solved)
The following information was extracted from the books of Moses Kiprono, a farmer, for the year ended 31 March 2003.
Date posted: February 11, 2019. Answers (1)
- Determine:
a) Crop account for the year ended 31 December 2006.
b) Livestock account for the year ended 31 December 2006.
c) Poultry account for the year ended...(Solved)
The following trial balance was extracted from the books of Mkulima Halisi, a farmer, as at December 2006:
Date posted: February 11, 2019. Answers (1)
- Determine:
i) Crop and livestock revenue accounts, in columnar format, for the year ended 31 March 2012.
ii) General income statement for the year ended 31 March...(Solved)
The following balances were extracted from the books of Shamba Ltd. as at 31 March 2012:
Date posted: February 11, 2019. Answers (1)
- Explain the circumstances under which an entity should recognize a biological asset or agricultural produce in the context of International Accounting Standard (IAS) 41, Agriculture.(Solved)
Explain the circumstances under which an entity should recognize a biological asset or agricultural produce in the context of International Accounting Standard (IAS) 41, Agriculture.
Date posted: February 11, 2019. Answers (1)