The following balances were extracted from the books of Furahia Enterprises for the month of
September 2013:
Sh.
Debit balance (1 September 2013): Sales ledger 14,280,000
Purchases ledger 1,920,000
Credit...
(Solved)
The following balances were extracted from the books of Furahia Enterprises for the month of
September 2013:
Sh.
Debit balance (1 September 2013): Sales ledger 14,280,000
Purchases ledger 1,920,000
Credit balance (1 September 2013): Sales ledger 1,680,000
Purchases ledger 6,720,000
Credit notes received from suppliers 1,860,000
Debt collection expenses 480,000
Interest charged on customers' overdue accounts 384,000
Customers dishonoured cheques 1,260,000
Bad debts written off 720,000
Receipts from customers 1,280,000
Interest charged by creditors on overdue accounts^ 588,000
Payment to creditors 7,680,000
Contra settlements 390,000
Credit notes issued to customers 270,000
Credit sales 17,340,000
Cash sales 3,240,000
Cash purchases 2,160,000
Credit purchases 7,440,000
Discounts, allowed 1,080,000
Discounts received 690,000
Balances as at 30 September 2013:
Sales ledger (credit) 1,110,000
Purchases ledger (debit) 1,050,000
Required;
i) Sales ledger control account for the month ended 30 September 2013.
ii) Purchases ledger control account for the month ended 30 September
Date posted:
May 16, 2019
.
Answers (1)
The following is a summary of the cash book of Azimio Ltd. for the year ended 31 May 2014:
Subsequent investigations reveal that:
1. A page of...
(Solved)
The following is a summary of the cash book of Azimio Ltd. for the year ended 31 May 2014:
Subsequent investigations reveal that:
1. A page of the receipt side of the cash book has been under cast by Sh.200, 000.
2. The following transactions appearing on the bank statement have not yet been entered in the cash
book:
- Dividend received on a trade investment Sh.1, 147,000.
- Hire purchase repayments for 12 months at Sh.55, 000 per month.
- Interest for the half year to 30 November 2014 on a loan of Sh.20, 000,000 at 11 percent per
annum.
3. Bank charges of Sh. 143,000 shown on the bank statement have not yet been entered in the cash
book.
4. A cheque received from a customer for Sh.180, 000 was returned by the bank unpaid and no entry
has been made in the cash book for this transaction.
5. The company owes Sh.430, 000 for electricity consumed in the month of May 2014.
6. A cheque for Sh.82, 000 has been debited to the company's account in error by the bank.
7. A cheque drawn for Sh.98, 000 has been entered in the cash book as Sh.89, 000 and another
one-drawn for Sh.230, 000 has been entered as a receipt.
8. A transposition error occurred in the opening balance of the cash book. The opening
balance should have been brought down as Sh.850, 000 instead of Sh.805, 000.
9. Cheques paid to suppliers totalling Sh.630, 000 have not yet been presented at the bank, while
deposits totaling Sh.580, 000 made on 31 May 2014 have not yet been credited to the company's
account.
10. The balance as per the bank statement is an overdraft of Sh.870, 000.
Required:
(i) Adjusted cash book balance.
(ii) Bank reconciliation statement as at 31 May 2014.
Date posted:
May 16, 2019
.
Answers (1)
Discuss five principles of the code of ethics that govern the professional conduct of accountants.
(Solved)
Discuss five principles of the code of ethics that govern the professional conduct of accountants.
Date posted:
May 15, 2019
.
Answers (1)