- The following trial balance was extracted from Vumilia traders as 31st December 2006
Additional information:
-closing stock 25,000
-Outstanding salaries 450
-Insurance 900 has been paid in advance
-Depreciate machinery...(Solved)
The following trial balance was extracted from Vumilia traders as 31st December 2006
Additional information:
-closing stock 25,000
-Outstanding salaries 450
-Insurance 900 has been paid in advance
-Depreciate machinery by 10% on cost
Required: i) trading, profit and loss a/c
ii) Balance sheet
Date posted: April 4, 2019. Answers (1)
- The following information was extracted from Jaribu traders on 31st December 2009
Stock turnover 5
Mark up ...(Solved)
The following information was extracted from Jaribu traders on 31st December 2009
Stock turnover 5
Mark up 25%
Cost of sales 60,000
Closing stock 8,000
Required: i) Net sales
ii) Average stock
iii) Opening stock
iv) Net purchases
Date posted: April 4, 2019. Answers (1)
- The following extracted from the books of Mogusii Ltd. 2005
March 1. Credit purchases from Obwocha Sit 1200
Agwata sh. 3,000 and Nyauamba sh.2,500
March 5 Credit sales...(Solved)
The following extracted from the books of Mogusii Ltd. 2005
March 1. Credit purchases from Obwocha Sit 1200
Agwata sh. 3,000 and Nyauamba sh.2,500
March 5 Credit sales to Okero Sit 2,000, Michieka sh.4,300 and Omwenga sh. 1500
March 10 Credit purchases from Onyancha Sh.2700
Obwocha sh 6600 and Ombaki sh.3300
“ 20 Returned goods to Obwocha sh.250 and Onyancha 703
26 Credit sales to Bundi sh.850. Tendu sh.630 and Okero-sh.900
“ 30 GoodswereretumedbyBundish.I50andMichiekasitl30
Required: Enter the above transactions in their relevant day books
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 is a trial balance of JAO traders as at 31/12/2009
...(Solved)
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
Date posted: April 4, 2019. Answers (1)
- 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)