Get premium membership and access questions with answers, video lessons as well as revision papers.

The following is a trial balance of JAO traders as at 31/12/2009 ...

      

The following is a trial balance of JAO traders as at 31/12/2009
Dr Cr
(Shs) (Shs)
Capital 170000
Opening stock 60000
Equipment at cost 125000
Purchases 161000
Sales 208000

Discounts 2000 8000
Returns 27000 25000
Salaries 20000
Telephone charges 5000
Water bills 2100
Creditors 15100
Debtors 21000
Electricity expenses 2000
Insurance paid 1000
426000 426000

Additional information
i. Closing stock was valued at Shs.72000
ii.Telephone charges prepaid was Shs.1000 and outstanding water bills was Shs.1300
iii.Depreciation on equipment is 10% p.a on cost
iv.Carriage inwards was Shs.11000 and carriage outwards Shs.10000
Prepare trading and profit loss account for the year ending 31/12/2009

  

Answers


Kavungya
fig374420191120.png
Kavungya answered the question on April 4, 2019 at 08:20


Next: A minibus of mass 2000kg traveling at a constant velocity of 36km/h collides with a stationary car of mass 1000kg. The impact takes 2 seconds before...
Previous: State the law of inertia

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions


  • On 1st June 2009, Nyamira Traders had cash in hand shs.87,000 and cash at bank Shs.250,000. During the month, the following transactions took place:- 2009 June 2:-Cash...(Solved)

    On 1st June 2009, Nyamira Traders had cash in hand shs.87,000 and cash at bank Shs.250,000.
    During the month, the following transactions took place:-
    2009 June 2:-Cash sales shs.50,000 issued Receipt No.063
    3:- Paid salaries and wages shs.101,500 by cheque ; cheque no. 083
    6:- Received a cheque for shs.76,800 from Kemunto, after allowing her a cash discount
    of 4% issued a receipt No. 064
    12:- Settled Omwabo’s account of shs.40,000 in cash, having deducted shs.800 cash
    discount. Received recipt no. 0656
    18:- Withdrew shs.30,000 from bank for office use
    21:- Received shs.16,500 cash from Manwari in settlement of his account less shs.660
    cash discount. Receipt No. 065
    22: - Bought office furniture by cheque shs.85,000. Receipt No. 734
    23:- Paid wages Shs.24,000 in cash receipt No. 801
    28:- Withdrew shs.5000 cash for private use
    30:- Received a cheque for shs.150,000 in respect of cash sales . Receipt No. 066
    Required: Prepare:- (i) A cash receipts journal
    (ii) A cash payment journal

    Date posted: April 4, 2019.  Answers (1)

  • Mr. Osodo, a sole trader in Mumias town does not keep complete set of accounting books. However, the following information was obtained from his general operation...(Solved)

    Mr. Osodo, a sole trader in Mumias town does not keep complete set of accounting
    books. However, the following information was obtained from his general operation book for
    the year ending 31/12/209
    Shs.
    Debtors balance on 1/1/2009 24000
    Bad debts 2000
    Creditors balance 1/1/2009 68000
    Debtors balance on 31/12/2009 72000
    Discount allowed 18000
    Creditors balance on 31/12/2009 83600
    Returns inwards 5600
    Cash paid to creditors 590000
    Returns outwards 10200
    Cash received from debtors 298000
    Discount disallowed 1000
    Dishonored cheques 36000
    Discount received 6000

    Additional information
    He also disclosed that he had paid cash purchases amounting to Shs.483400 and received cash
    sales of Shs.70000 for the year
    Required; i) Prepare total debtors account and total creditors account
    ii) Calculate total purchases and total sales for the year

    Date posted: April 4, 2019.  Answers (1)

  • Journalize the following transactions which took place in the business of W. Wanjala during the month of June 2009:- June 1 Balance B/f...(Solved)

    Journalize the following transactions which took place in the business of W. Wanjala during
    the month of June 2009:-
    June 1 Balance B/f from May 2009 were:-
    Office furniture shs.50,000 and motor vehicle shs.100,000
    June 2 Purchased office furniture on credit for shs.65,000 from Mwema furniture
    June 10 Sold an old vehicle on credit to Omwami garage for shs.200,000
    June 25. Discovered that a motor vehicle that had been bought on credit from
    Kanyere motor for Kshs.750,000, had been recorded in purchases account
    June 28 Sold an old computer to classic academy on credit for ksh. 15,000
    June 29 : Sold an old tractor whose book value is Kshs. 200,000 for Khs.250,000
    to Goseta

    Date posted: April 4, 2019.  Answers (1)

  • A petty cashier of Mugirango traders operates his petty cash book on an imprest system of sh. 2500. On I February 2009, he had cash in...(Solved)

    A petty cashier of Mugirango traders operates his petty cash book on an imprest system
    of sh. 2500. On I February 2009, he had cash in hand of Sh. 500 and was reimbursed the
    difference by the main cashier to restore his cash float. The following transactions took
    place during the same month of February 2009:
    Feb 2nd paid taxi fare sh.150 and wages sh250
    4th Bought five reams of paper for sh25 each and stamps for sh.30
    7th Paid wages sh.250 and bought envelopes for sh.40
    20th Bought tea for staff sh.70 and paid for water bills sh.56
    28th Paid for electricity sh.80 and stamps sh.40

    Required: Prepare a petty cash book using the following analysis columns;
    - Wages
    - Traveling
    - Stationery
    - Postage
    - Miscellaneous

    Date posted: April 4, 2019.  Answers (1)

  • During the month of March 2010 the petty cashier of Nyangija distributors made the following payment after receiving an imprest of shs12, 000 from the general...(Solved)

    During the month of March 2010 the petty cashier of Nyangija distributors
    made the following payment after receiving an imprest of shs12, 000 from the general cashier.
    March 3 traveling 3500
    March 6 office expenses 1000
    March 8 postage 1200
    March 15 staff tea 800
    March 19 stationery 2000
    March 22 office expenses 800
    March 24 staff tea 1000
    March 26 sundry expenses 700
    March 31 F. Benson a creditor 900
    Required : Using the analytical columns below prepare a petty cash book of Nyangija distributors
    - Traveling
    - Office expenses
    - Postage
    - Stationery
    - Staff tea
    - Sundry expenses
    - Ledger accounts

    Date posted: April 4, 2019.  Answers (1)

  • The following transactions relate to Furaha traders for the month of July,2008 July 1 : Balance brought down cash sh.16,250 and Bank...(Solved)

    The following transactions relate to Furaha traders for the month of July,2008
    July 1 : Balance brought down cash sh.16,250 and Bank Shs.19,847
    July2 : Sold goods worth Shs.1,348 to Patel and received a calculator in exchange
    July 5 : Paid transport by cheque Shs.2,000
    July 6 : Issued a cheque to Kerio Traders setting an invoice for Shs.10,000 deducting 2%
    cash discount
    July 10: Transfer Shs.15 000 from cash till to bank
    July 12: Sold goods for cash Shs.12,000 less 2% cash discount
    July 13: Sold goods to Onyango on credit worth Shs.15, 000
    July 14: The owner of the business withdrew Shs.3000 in cash to buy a present for his
    daughter
    July 16 : Received a cheque from Kuria Shs.2,500 less 5 % cash discount
    July 22 : Bought furniture from Babu Traders on credit worth Shs.16,500 and cash
    discount of 10% if payment is made within 2 weeks
    July 24: Withdrew cash from bank for office use Shs8,000
    July 26: The owner brought into the business Shs.9,000 cash
    July 27: Issued a cheque to Babu Traders for amount due
    July 28: Sold goods to Kuria worth Shs.5,000 for Shs.3,800 and received payment by
    cheque
    July 30: Banked all cash and remained with Shs.100 in the cash till

    Required; Prepare Furaha Traders three column cash book for the month of July, 2008

    Date posted: April 4, 2019.  Answers (1)

  • Mumji Enterprises maintain a petty cash book on an imprest system with weekly float of Kshs.40,000. The following information relates to the week ended 7th June 2009:- ...(Solved)

    Mumji Enterprises maintain a petty cash book on an imprest system with weekly float of
    Kshs.40,000.
    The following information relates to the week ended 7th June 2009:-
    1st cash in hand was Ksh.7000
    1st receives reimbursement from the chief cashier
    1st paid wages Ksh.5500, bus fare Ksh.1250,Sugar sh.220 and stamps shs.150
    2nd Bought stationery Ksh.5000
    3rd Paid postage shs.200
    4th Bought tea leaves shs.80 and shs.2000 for type writer repair
    5th Bought coffee shs.340 and milk shs.800
    7th Bought a ribbon for type writer shs.500, stencils shs.350 and bus fare shs.900

    Required: - Prepare a petty cash book duly balanced on 7th June with the following columns.
    Traveling, Wages, Stationary, Postage, tea and miscellaneous

    Date posted: April 4, 2019.  Answers (1)

  • Enter the following transactions in the petty cash book of Makavale stores for the month of July 2009 using the following analysis columns: Telephone and postage;...(Solved)

    Enter the following transactions in the petty cash book of Makavale stores for the month of
    July 2009 using the following analysis columns: Telephone and postage; office
    stationery, traveling expenses and office expenses. The business operates the petty cash book
    on an imprest system of 4000/= replenished on weekly basis
    July 1st – received a cheque from the cashier to start the imprest
    1st – paid for taxi hire 250/= and 130/= for office cleaning
    2nd – bought postage stamps for 210/= and a ball of string for use in the office 100/=
    3rd – postage of a parcel cost 100/= and paid a telephone bill 900/=
    4th – purchased envelopes for 150/= and one ream of photocopying paper 500/=
    5th – paid for bus fare 500/= and made a telephone call costing 50/=
    6th – purchased a window cleaning cream for 250/= and bus fare 200/=
    8th – Received a cheque to replenish the imprest
    8th – bought various office stationary for 400/=
    9th – purchased postage stamps for 210/= and paid 950/ telephone bill
    10th – paid train fare 600/= and taxi fare 250/=
    11th – paid for office cleaning 150/=
    12th – purchased two reams of writing paper 600/= and office dusters 300/=
    14th – obtained a cheque from the cashier to replenish the imprest

    Required:. Prepare the petty cash book for the two weeks

    Date posted: April 4, 2019.  Answers (1)

  • On March 2007, Doris had cash in hand shs.87,000 and cash at bank shs.25,000. During this month, the following transactions took place: March 2nd : Cash sales...(Solved)

    On March 2007, Doris had cash in hand shs.87,000 and cash at bank shs.25,000. During this
    month, the following transactions took place:
    March 2nd : Cash sales shs.60,000
    3rd: Paid salaries shs.101,500 by cheque
    7th : Received a cheque of shs.76,000 from Henry after allowing a cash discount of 5%
    13th: Bought office furniture by cheque shs.86,000
    17th: Settle marital account for shs.34,200 in cash having deducted shs.8,000 cash discount
    20th: Received a cheque for shs.165,000 in respect for cash sales
    22nd: Paid wages shs.25,000 in cash
    24th: Withdrew shs.32,000 for bank for office use
    25th : Withdrew shs.4,000 cash for personal use
    29th: Received shs.17,000 cash form Alvin in settlement of his account less shs.1000
    cash discount
    31st : Deposited all the money into the bank except shs.24,600

    Required: Prepare a three column cash book duly balanced

    Date posted: April 4, 2019.  Answers (1)

  • The following information relates to Ndhiwa resort traders for the month of November 2009:- November, 1.started a business with shs 160,000 cash ...(Solved)

    The following information relates to Ndhiwa resort traders for the month of November 2009:-
    November, 1.started a business with shs 160,000 cash
    2. Purchases shs.120,000
    3. Made sales in cash shs.126,000
    4. Paid for electricity shs.1000 in cash
    5. Received rent of shs.37 500 in cash
    6. Gave discount of shs.6,000 in cash
    Required :- i) Post the above information in the relevant ledger accounts and balance them off
    ii) Extract a trial balance

    Date posted: April 4, 2019.  Answers (1)

  • Record the following transactions in the relevant ledger accounts, balance the account and extract a trial balance Date ...(Solved)

    Record the following transactions in the relevant ledger accounts, balance the account
    and extract a trial balance
    Date Transaction
    1/4/2007 Mary started business with shs.80,000 cash
    2/4/2007 Bought stationery for shs.4,000 and paid in cash
    3/4/2007 Opened a bank account and deposited shs.50,000 from the cash till
    4/420007 Bought motor vehicle worth shs.250,000 from Lucy motors on credit
    5/4/2007 Bought postage stamps for shs.60 in cash

    Date posted: April 4, 2019.  Answers (1)

  • Mr. Omanda started a business in January 2000 with cash in hand 100,000. The following transactions took place during the year:- January: Bought stock by cash Kshs.20,000 February:...(Solved)

    Mr. Omanda started a business in January 2000 with cash in hand 100,000. The following
    transactions took place during the year:-
    January: Bought stock by cash Kshs.20,000
    February: Sold goods on credit Kshs.30,000
    March: Opened a bank account by banking cash Kshs.60,000
    April: A debtor returned goods worth shs.5,000
    May: Bought goods Kshs.70,000 on credit
    June: The owner took cash Shs.10,000 to pay his children school fees

    Extract a trial balance.

    Date posted: April 4, 2019.  Answers (1)

  • A newly industrialized country with a population of 40 million people, had its national income estimates during the year 2009 as follows: ...(Solved)

    A newly industrialized country with a population of 40 million people, had its national
    income estimates during the year 2009 as follows:
    Value in Kshs (million)
    Exports 250000
    Consumption expenditure 624000
    Investment 300000
    Government spending 416000
    Imports 210000
    Depreciation 10000
    Net indirect taxes 50000
    Required:
    (i) Calculate the GNP per capital of the country
    ii) Outline limitations of using GNP pr capita in measuring the standard of living of accounts

    Date posted: April 4, 2019.  Answers (1)

  • By use of a diagram, explain how price and output are determined in a collusive oligopoly (centralized cartel) market situation(Solved)

    By use of a diagram, explain how price and output are determined in a collusive oligopoly
    (centralized cartel) market situation

    Date posted: April 4, 2019.  Answers (1)

  • A manufacturer exhibited his goods in a local trade fair. However, his sales didn’t increase significantly thereafter. Outline five reasons that may have led to lack...(Solved)

    A manufacturer exhibited his goods in a local trade fair. However, his sales didn’t increase
    significantly thereafter. Outline five reasons that may have led to lack of significant sales
    increase

    Date posted: April 4, 2019.  Answers (1)

  • Jogoo business enterprise has been using salesmen to market their products. Highlight five benefits of this strategy to the company(Solved)

    Jogoo business enterprise has been using salesmen to market their products. Highlight
    five benefits of this strategy to the company

    Date posted: April 4, 2019.  Answers (1)

  • Highlight five circumstances under which persuasive advertising may be used(Solved)

    Highlight five circumstances under which persuasive advertising may be used

    Date posted: April 4, 2019.  Answers (1)

  • Highlight five benefits that a firm gets from the use of customers care services as part of its operation(Solved)

    Highlight five benefits that a firm gets from the use of customers care services as part
    of its operation

    Date posted: April 4, 2019.  Answers (1)

  • Your father wants to insure his life with British American Insurance Company. As a Business Studies student, explain to him five benefits of life assurance(Solved)

    Your father wants to insure his life with British American Insurance Company. As a Business
    Studies student, explain to him five benefits of life assurance

    Date posted: April 4, 2019.  Answers (1)

  • Outline five disadvantages of sirens as a form of communication that is popular with ambulances and the police(Solved)

    Outline five disadvantages of sirens as a form of communication that is popular with
    ambulances and the police

    Date posted: April 4, 2019.  Answers (1)