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a. The deposit earns a high rate of interest than the rate paid for the savings account.
b. There are no banking charges for this account unlike current and savings account.
c. One can use the deposit in this account as a security for a loan.
d. A depositor can negotiate for higher interest when the amount involved is very high.
maalimA answered the question on March 28, 2019 at 13:49
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Sales ...(Solved)
The following information refers to tea traders for the year ended 31/12/04
Sales 800,000
Expenses 10,000
Commission received 15,000
Purchases 700,000
Opening stock 250,000
Margin 20%
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Bambu Traders
Balance sheet as at 31st December 2000
a) Sales during the year...(Solved)
The following is a balance sheet of Bambu traders as at 31st December 2000
Bambu Traders
Balance sheet as at 31st December 2000
a) Sales during the year amounted to Kshs 2,000,000
b) Stock on 1 January 2000 was Kshs. 100,000
c) Gross profit margin was 20%
Calculate
i) Current ratio
ii) Gross profit mark up
iii) Rate of stock turnover
Date posted: March 27, 2019. Answers (1)
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year ended 31st March 2001
Gross profit 186,200
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The following balances were extracted from the books of Vuno Traders for the
year ended 31st March 2001
Gross profit 186,200
Carriage outwards 13,500
Rent received 34,300
Office expenses 19,600
Salaries 57,000
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Date posted: March 27, 2019. Answers (1)
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Jan 1 started business with Kshs. 20,000 in cash
Deposited 15,000 from cash till...(Solved)
The following transactions relates to Tajira Traders for the month of January 2001
Jan 1 started business with Kshs. 20,000 in cash
Deposited 15,000 from cash till into a business Bank account
Bought goods on credit from Wema traders for 6,000
Bought furniture by cheque sh 3,000
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Sales 500,000
Cost...(Solved)
The following figures obtained from the records of Buka Enterprises for the year ended 30th June 2000
Sales 500,000
Cost of goods sold 280,000
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Date posted: March 27, 2019. Answers (1)
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Additional information
a) during the year the owner converted her private car worth 90,000 for business...(Solved)
Cumvi Traders had a capital of sh 180,000 as at 31.12.1998
Additional information
a) during the year the owner converted her private car worth 90,000 for business use
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c) Net profit for the year was sh 140,000
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Opening stock 50,000
Sales 360,000
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The following balances were obtained from the books of Rah traders
Opening stock 50,000
Sales 360,000
Gross profit 25% of sales
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Opening stock 8,000
Purchases bank ...(Solved)
The following information was obtained from the books of Kina Traders on 30th June 1998
Opening stock 8,000
Purchases bank 53,000
Sales 62,900
Return outwards 2,700
Closing stock 12,700
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Additional...(Solved)
The following information relates to Mali traders for the year ended 31st Dec 1998.
Capital 1.198 250,000
Additional investment 68,000
Drawing 92,000
Profit 180,000
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1998
Cost of goods sold 65,000
General expenses ...(Solved)
The following information was extracted from the books of Peshau Traders as at April
1998
Cost of goods sold 65,000
General expenses 280,000
Capital for the period was 20% 10,000
Calculate rate of net profit to capital
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on 30th June 1997.
Opening stock 65,000
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The following account balances were extracted from the books of Kiboko enterprises
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Opening stock 65,000
Sales 280,000
Purchases 190,000
Purchases returns 10,000
Sales returns 4,200
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Prepare the trading a/c for period
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Gross profit 130,800
Carriage of...(Solved)
The following information was extracted from the books of Kwaso traders on 31st August 1997.
Gross profit 130,800
Carriage of sales 4,700
Commission received 8,000
General expenses 18,200
Insurance 4,000
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Cash 20, 520
Bank ...(Solved)
The following balances were extracted from the books of Waso traders on 30th October 1995.
Cash 20, 520
Bank 160,230
Premises 800,000
Debtors 40,000
Creditors 62,000
2 year loan 40,000
Stock 2,500
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- During the month of July 1995 Kungu made sales worth Kshs.60,000. His margin on sales was 20%, calculate;
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b) The gross...(Solved)
During the month of July 1995 Kungu made sales worth Kshs.60,000. His margin on sales was 20%, calculate;
a) The cost of goods sold
b) The gross profit
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- The following account balances were extracted from the books of Kitu traders on 30th
November 1995
Machinery 250,000
Debtor ...(Solved)
The following account balances were extracted from the books of Kitu traders on 30th
November 1995
Machinery 250,000
Debtor 62,000
Creditors 46,000
Stock 12,680
Cash in hand 1,500
Cash at bank 15,000
Determine the capital as at 30th November 1995
Date posted: March 27, 2019. Answers (1)
- On 1 Match, 2001, Mingi traders had Ksh. 13,200 in cash and bank balances of Sh 56,000. The following transaction took place during the month.
2001...(Solved)
On 1 Match, 2001, Mingi traders had Ksh. 13,200 in cash and bank balances of Sh 56,000. The following transaction took place during the month.
2001 2 Cash sales sh. 12,000
12 paid a creditor sh. 8,200
27 received a cheque for sh. 4,500 from debtors
31 paid rent 7,500 in cash
Record the above information in a two column cash book and balance it off.
Date posted: March 27, 2019. Answers (1)