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- when one has a large amount of money with no immediate use
- Where one has a financial obligation to meet at a future date
- Where one intends to use it as collation/security.
- Where a trader wants to earn interest from the fixed deposit account.
Kavungya answered the question on April 4, 2019 at 05:31
- Highlight four differences between a balance sheet and statement of affairs(Solved)
Highlight four differences between a balance sheet and statement of affairs
Date posted: April 4, 2019. Answers (1)
- On 1st January 2009, Rodi Traders had a capital of shs 550 000 at the end of the year.
The following balances were available
Items ...(Solved)
On 1st January 2009, Rodi Traders had a capital of shs 550 000 at the end of the year.
The following balances were available
Items 31.12.2009
Shs.
Creditors 50 000
Debtors 30 000
Bank overdraft 80 000
Buildings 870 000
Rent due 10 000
Salaries prepaid 10 000
i) Prepare statement of affairs as at 31.12.2009
ii) Determine the net profit for the year
Date posted: April 4, 2019. Answers (1)
- On 31st January 2004, Maleya Traders had a capital of Kshs.65000. At the end of the year, the
following balances were available:-
...(Solved)
On 31st January 2004, Maleya Traders had a capital of Kshs.65000. At the end of the year, the
following balances were available:-
Kshs.
Stock 8,000
Creditors 6,000
Cash at bank 4,000
Premises 90,000
Prepare a statement of affairs on 31st December 2004
Date posted: April 4, 2019. Answers (1)
- The bookkeeper of Chacha Traders extracted the following information form the accounting
records:-
...(Solved)
The bookkeeper of Chacha Traders extracted the following information form the accounting
records:-
1/1/2009 31/12/2009
Suppliers 445,000 620,000
Discount received - 12,000
Purchases returns - 25,000
During the year ended 31/12/2009, suppliers were paid shs.1,400,000 while cash purchases
Amounted to shs.800,000. Determine the purchase for the year
Date posted: April 4, 2019. Answers (1)
- The following information was obtained from Maganda Enterprises for the year ended
31st Dec 2003:-
Opening stock kshs.40,000
Purchases ...(Solved)
The following information was obtained from Maganda Enterprises for the year ended
31st Dec 2003:-
Opening stock kshs.40,000
Purchases kshs.400,000
Gross profit kshs. 100,000
Goods were sold at a marked-up of 25%
Required;
Calculate: i) Sales for the year
ii) Rate of stock turn over
Date posted: April 4, 2019. Answers (1)
- The following balances were extracted from the books of Chombo wholesalers for the year
ended 31st December, 2009
Calculate;- a) Margin
...(Solved)
The following balances were extracted from the books of Chombo wholesalers for the year
ended 31st December, 2009
Calculate;- a) Margin
b) Current ratio
c) Rate of Stock turnover
Date posted: April 4, 2019. Answers (1)
- The following balances were extracted from the books of Shah Traders on 30th June, 2010
Closing stock was Kshs. 70,000 as at 30th June, 2010. Prepare...(Solved)
The following balances were extracted from the books of Shah Traders on 30th June, 2010
Closing stock was Kshs. 70,000 as at 30th June, 2010. Prepare the trading account for the period
ended 30th June, 2010
Date posted: April 4, 2019. Answers (1)
- The following relates to Atis traders
Stock (1-7-2007) shs. 22,000
Purchases ...(Solved)
The following relates to Atis traders
Stock (1-7-2007) shs. 22,000
Purchases 100,000
Mark –up 10%
Stock (30-6-2008) 26,000
Prepare her trading account
Date posted: April 4, 2019. Answers (1)
- The following balances were extracted from the books of Wanga traders as at 30th June,2009
Current assets 320000
Capital ...(Solved)
The following balances were extracted from the books of Wanga traders as at 30th June,2009
Current assets 320000
Capital 525000
Net profit 95000
Creditors 88200
Accrued expenses 10800
Calculate: a) Working capital
b) Return on capital
Date posted: April 4, 2019. Answers (1)
- The following information relates to Mandu enterprises limited
Stock (1.1.2009) 40000
Stock (31.1.2009) 60000
Purchases ...(Solved)
The following information relates to Mandu enterprises limited
Stock (1.1.2009) 40000
Stock (31.1.2009) 60000
Purchases 500000
Margin 20%
Prepare Mandu Enterprises Limited Trading account for the year ended 31st December, 2009
Date posted: April 3, 2019. Answers (1)
- The following information related to Virusi Trader for the year ended June 28th 2009
...(Solved)
The following information related to Virusi Trader for the year ended June 28th 2009
Shs
Sales 5 400 000
Expenses 800 000
Mark up ration 2:3
Stock turnover ratio 6times
Required:-
Calculate: i) Gross profit
ii) Cost of sales
iii) Net profit
Date posted: April 3, 2019. Answers (1)
- The information below relates to Half-Bilha Traders for the year ended 30th September 2009;
Net sales 300,000
Cost of sales...(Solved)
The information below relates to Half-Bilha Traders for the year ended 30th September 2009;
Net sales 300,000
Cost of sales 150,000
Bad debts 30,000
Wages 25,000
Discount received 25,000
Rent 6,000
Carriage inwards 18,000
Carriage outwards 12,000
Prepare a profit and loss account for the business
Date posted: April 3, 2019. Answers (1)
- The following information was extracted form the books of Bondo Traders as at 31st Dec. 2004
Opening stock 2,500
Purchases ...(Solved)
The following information was extracted form the books of Bondo Traders as at 31st Dec. 2004
Opening stock 2,500
Purchases 46,000
Closing stock 1,500
Mark up 20%
Prepare a trading account.
Date posted: April 3, 2019. Answers (1)
- The following information relates to Kafupi business enterprise:-
Average stock Shs.120,000
Rate of stock turnover 3 times
Margin ...(Solved)
The following information relates to Kafupi business enterprise:-
Average stock Shs.120,000
Rate of stock turnover 3 times
Margin 25%
From the data above, determine;
(a) The cost of goods
(b) Gross profit
(c) Sales
Date posted: April 3, 2019. Answers (1)
- The following account balances were obtained from Omenda traders on 31st December 2002
...(Solved)
The following account balances were obtained from Omenda traders on 31st December 2002
Kshs.
Stock (1/1/2002) 120,000
Purchases 170,000
Return inwards 30,000
Stock (31/12/2002) 110,000
Sales 300,000
Calculate: (i) Margin
(ii) Rate of stock turn over
Date posted: April 3, 2019. Answers (1)
- The following balances were extracted from the books of Masai retailers on
14th July 2000
...(Solved)
The following balances were extracted from the books of Masai retailers on
14th July 2000
Shs.
Opening stock 30 000
Purchases 800 000
Closing stock ?
Sales 1 000 000
Return inwards 20 000
Return outwards 15 000
Maasai retailers sell goods at a mark up of 20%
Prepare the trading account for the period ended 14th July 2000
Date posted: April 3, 2019. Answers (1)
- The following information was extracted from the books of Klub traders
...(Solved)
The following information was extracted from the books of Klub traders
Kshs.
Opening stock 160,000
Closing stock 200,000
Purchases 1,800,000
Margin 20%
Calculate klubs sales
Date posted: April 3, 2019. Answers (1)
- From the following information prepare debtors control account for the year
ended 31st Dec 2007
...(Solved)
From the following information prepare debtors control account for the year
ended 31st Dec 2007
Shs
Debtors balance 1-1-07 11,000
Credit sales ?
Bad debts written off 5,000
Return inwards 1,600
Receipts from debtors 31,000
Dishonoured cheque 2,800
Discount allowed 3,400
Debtors balance 31-12-07 25,300
Date posted: April 3, 2019. Answers (1)
- State the journal that deals with each of the following types of transactions(Solved)
State the journal that deals with each of the following types of transactions
TYPE OF TRANSACTION JOURNAL
i) Credit sales
ii) Return of goods by customers
iii) Return of goods to suppliers
iv) Cash cheques received
v) Credit purchases
vi) Sale of fixed assets on credit
vii) Purchase of a motor van on credit from general motors
viii) Correction of errors
Date posted: April 3, 2019. Answers (1)
- On 31st December,2009 details extracted from Khetia’s Ltd. showed commission received for the
year as Kshs. 60,000. Commission received in advance by 1st January,2009 was Kshs.12,000.
Whereas...(Solved)
On 31st December,2009 details extracted from Khetia’s Ltd. showed commission received for the
year as Kshs. 60,000. Commission received in advance by 1st January,2009 was Kshs.12,000.
Whereas commission received in advance as at 31st December, 2009 was Kshs. 24,000.
Determine the commission income for the year 2009 that is posted to the profit and loss account
Date posted: April 3, 2019. Answers (1)