Initial capital interest = Kshs.120,000
Final capital + Drawings – Net profit = Initial capital
160000 + (2000 x 12months) Net profit = 120000
160,000 + 24000 – (Net Profit) = 1200000
184000 – Net profit = 120000
Net profit = 184000 – 12000
Net profit for the year = 64,000
Kavungya answered the question on April 3, 2019 at 11:52
- Show how the following transactions may affect the items of balance sheet, stating whether it is
an increase , decrease or no effect(Solved)
Show how the following transactions may affect the items of balance sheet, stating whether it is
an increase , decrease or no effect
Date posted: April 3, 2019. Answers (1)
- The following balances relates to Onyonka traders as at 1st Jan. 2010
The following transactions took place the same month:-
Jan 2nd debtors paid in cash shs.20,000.
Jan....(Solved)
The following balances relates to Onyonka traders as at 1st Jan. 2010
The following transactions took place the same month:-
Jan 2nd debtors paid in cash shs.20,000.
Jan. 31st sold stock worth shs.20,000 for Shs.25,000 by cheque
Prepare a balance sheet as 31st Jan. 2010
Date posted: April 3, 2019. Answers (1)
- Given below are transactions relating to Mwala traders. For each of the transactions, indicate
in the column below the account to be debited and the account...(Solved)
Given below are transactions relating to Mwala traders. For each of the transactions, indicate
in the column below the account to be debited and the account to be credited
Date posted: April 3, 2019. Answers (1)
- Indicate the balance sheet items which would be affected by the following transactions
(a) Purchase of a lawn mower by cheque
(b) Sale of goods on credit...(Solved)
Indicate the balance sheet items which would be affected by the following transactions
(a) Purchase of a lawn mower by cheque
(b) Sale of goods on credit to Mwangi
(c) A debtor pays by cash
(d) The owner converted his personal car into a business asset
Date posted: April 3, 2019. Answers (1)
- The proprietor of the sunrise dealer had ksh.13,730/= as capital as at 1st January 2010.
The following transactions took place.
i) Sold goods worth ksh 3000/= for...(Solved)
The proprietor of the sunrise dealer had ksh.13,730/= as capital as at 1st January 2010.
The following transactions took place.
i) Sold goods worth ksh 3000/= for ksh.9000/=
ii) Deposited ksh.50, 000/= from his personal savings
If his capital as at 31st January 2010 was kshs.62, 230/=, determine the value of drawings
for the month of January 2010.
Date posted: April 3, 2019. Answers (1)
- The accounting period of Ochomo Traders ended on 30th June, 2008. The assets, liabilities and
capital were as follows on their date :
Capital ...(Solved)
The accounting period of Ochomo Traders ended on 30th June, 2008. The assets, liabilities and
capital were as follows on their date :
Capital 51000
Cash in hand 4000
Stock 10000
Furniture 7000
Creditors 5000
Long term loan 20000
Premises 50000
Debtors 2000
Bicycle 3000
Required: Prepare Ochomo traders balance sheet as at 30th June,2008
Date posted: April 3, 2019. Answers (1)
- Use the balance sheet equation to fill the missing figures in the table below(Solved)
Use the balance sheet equation to fill the missing figures in the table below
Date posted: April 3, 2019. Answers (1)
- Asman Traders had the following information extracted from their books of accounts as at 31st
June 2006
...(Solved)
Asman Traders had the following information extracted from their books of accounts as at 31st
June 2006
Shs.
Capital (1st July 05) 3 500 000
Additional investment 540 000
Drawings for the year 25 200
Capital (31st June 06) 6 000 000
Determine the profit for the year
Date posted: April 3, 2019. Answers (1)
- The following relates to Katiba traders as at 31st April 2010
...(Solved)
The following relates to Katiba traders as at 31st April 2010
Kshs.
Capital 600,000
Motor van 280,000
Furniture 80,000
Current assets ?
Current liabilities 50,000
Prepare Katiba’s balance sheet
Date posted: April 3, 2019. Answers (1)
- The table below shows a change in population size in country X for a period of four
years
Year ...(Solved)
The table below shows a change in population size in country X for a period of four
years
Year Total population
(000 000)
2001 40
2002 26
2003 13
2004 9
Give four reasons to account for this trend
Date posted: April 3, 2019. Answers (1)
- Explain the following terms as used in business
i) Census
ii) Unemployment
iii) Mortality...
iv) Optimum population.(Solved)
Explain the following terms as used in business
i) Census
ii) Unemployment
iii) Mortality...
iv) Optimum population.
Date posted: April 3, 2019. Answers (1)
- Identify factors that may be contributing to income disparity between the rich and poor
citizens in Kenya(Solved)
Identify factors that may be contributing to income disparity between the rich and poor
citizens in Kenya
Date posted: April 3, 2019. Answers (1)
- Account for the difference between the gross National Income figures between Kenya
and Uganda(Solved)
Account for the difference between the gross National Income figures between Kenya
and Uganda
Date posted: April 3, 2019. Answers (1)
- Outline four factors used to determine the distribution of Omo, as a common household detergent
in Kenya(Solved)
Outline four factors used to determine the distribution of Omo, as a common household detergent
in Kenya
Date posted: April 3, 2019. Answers (1)
- Dady a traders at Kibigori trading centre wishes to import goods from Brand kamp , a Germany
Describe four channels of distribution that Dady’s goods are...(Solved)
Dady a traders at Kibigori trading centre wishes to import goods from Brand kamp , a Germany
Describe four channels of distribution that Dady’s goods are likely to take to reach his consumers
at Kibgori
Date posted: April 3, 2019. Answers (1)
- Kenya co-operative creameries (KCC) sell its dairy products directly to retailers. Highlight four
factors that were considered in the choice of this channel of Distribution(Solved)
Kenya co-operative creameries (KCC) sell its dairy products directly to retailers. Highlight four
factors that were considered in the choice of this channel of Distribution
Date posted: April 3, 2019. Answers (1)
- Give four reasons why market research is important to a trader(Solved)
Give four reasons why market research is important to a trader
Date posted: April 3, 2019. Answers (1)
- The diagram below relate to a market structure
i) Name the market structure represented in the diagram shown above
ii) Name the curves marked(Solved)
The diagram below relate to a market structure
i) Name the market structure represented in the diagram shown above
ii) Name the curves marked
Date posted: April 3, 2019. Answers (1)
- Give four reasons why a firm may choose to remain small despite the benefits of
expansion(Solved)
Give four reasons why a firm may choose to remain small despite the benefits of
expansion
Date posted: April 3, 2019. Answers (1)
- The table below shows the total cost of a certain product at given output levels
At output of 50 units; determine
a) Total fixed costs
b) Average variable...(Solved)
The table below shows the total cost of a certain product at given output levels
At output of 50 units; determine
a) Total fixed costs
b) Average variable cost
c) Average total cost
d) Marginal cost
Date posted: April 3, 2019. Answers (1)