Funny Traders, had the following assets and liabilities as at 1^st January, 2015 ...

      

Funny Traders, had the following assets and liabilities as at 1^st January, 2015

Sh
Furniture + equipment........................... 350,000
Debtors .........................................45,000
Cash............................................ 7,000
Creditor......................................... 48,000

For the year ended 31st December, 2015 there was:
(i) Additional capital introduced amounting to sh34,000.
(ii) Drawings made during the year amounting to sh20,000.
(iii) Net profit amounting to sh34,000.

Determine the capital of the business as at 31^st December, 2015.

  

Answers

---

350,000 + 45,000 + 8000 – 48,000 = 402,000
402,000 – 48,000 = 354,000
Capital as at 31^st December, 2015 =
= 354,000 + 34,000 + 34,000– 20,000 = 402,000

---

sharon kalunda answered the question on September 4, 2019 at 12:09

Next: Indicate the form of external environmental factor described by the statement below.
Previous: The table below shows source document state the book of original entry in which the information from these source documents would be recorded.

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

Exams With Marking Schemes

• Grade 1
• Grade 2
• Grade 3
• Grade 4
• Grade 5
• Grade 6
• Grade 7
• Grade 8
• Grade 9
• PP1
• PP2
• Playgroup
• Form 1
• Form 2
• Form 3
• Form 4

Related Questions

---

• Indicate the form of external environmental factor described by the statement below.(Solved)
  

  Indicate the form of external environmental factor described by the statement below.
  

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

• The following balances were extracted from the books of Sitaki Mambo traders as at 31^st December, 2015 ...(Solved)
  

  The following balances were extracted from the books of Sitaki Mambo traders as at 31^st December, 2015
  
  Sh.
  Cash at bank................................... 12,500
  Cash in hand ....................................7,500
  Wages due .......................................3,500
  Creditors .......................................11,500
  Loan from bank ...................................60,000
  Motor vehicles ...................................100,000
  Equipment + Machinery .............................50,000
  Stock ............................................25,000
  Debtors ...........................................30,000
  Prepare a balance sheet for Sitaki Mambo traders as at 31^st December 2015

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

• Using the following transactions, state the name of the account to be debited and the account to be credited. Transaction ........................................A/c debited.......................... A/c Credited (i) Made...(Solved)
  

  Using the following transactions, state the name of the account to be debited and the account to be credited.
  
  Transaction ........................................A/c debited.......................... A/c Credited
  (i) Made cash sales of sh 2,000
  (ii) Purchased machine by cheque
  (iii) paid a creditor sh3,000 cash
  (iv) withdraw sh10,000 for business Use.

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

• Hellen the new manager, outshine Company limited, is considering turning the office layout from being an open office layout to a landscape layout. Outline four...(Solved)
  

  Hellen the new manager, outshine Company limited, is considering turning the office layout from being an open office layout to a landscape layout. Outline four changes she can adopt.

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

• The following information relates to Malindi Traders for the year ended 31st December 2015. ...(Solved)
  

  The following information relates to Malindi Traders for the year ended
  31st December 2015.
  
  Shs
  Total current assets ......................587,500
  Total Fixed assets ........................720,000
  Total current liabilities ..................32,500
  Total long term liabilities................. 357,500
  Net Profit ..................................50,000
  Capital...................................... 625,000
  Sales....................................... 1,000,000
  Opening stock................................. 50,000
  Closing stock .................................25,000
  Margin....................................... 20%
  Calculate:
  (i) Working capital
  (ii) Current ratio
  (iii) Mark-up percentage
  (iv) Rate of stock turnover
  (v) Return on capital

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

• State FOUR Ways in which advertising agencies assist in sales promotion.(Solved)
  

  State FOUR Ways in which advertising agencies assist in sales promotion.

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

• Kisii Traders had the following balances as at 31^st December 2014. ...(Solved)
  

  Kisii Traders had the following balances as at 31^st December 2014.
  
  Shs
  Bank Loan 3 years........................... 472,500
  Buildings ....................................540,000
  Creditors ....................................227,000
  Debtors .......................................116,900
  Furniture ......................................408,170
  Gross profit ...................................520,600
  Motor vehicle ...................................900,000
  Discount allowed ................................142,000
  Lighting........................................ 25,200
  Interest on loan ................................1,200
  Closing stock ...................................72,500
  Rent Received ..................................120,000
  Repairs on buildings .............................60,000
  Repairs on furniture .............................72,030
  Repairs on motor vehicle .........................300,000
  General expenses ..................................102,100
  Capital ..........................................1,400,000
  Prepare:
  (i) Profit and loss account for the year ended 31^st December 2014.
  (ii) Balance sheet as at 31/12/2014.

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

• State FOUR economic effects of taxation to a country's economy.(Solved)
  

  State FOUR economic effects of taxation to a country's economy.

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

• In each of the following cases, state the type of inflation described. a) The unrest in Libya has resulted to an increase in the price of...(Solved)
  

  In each of the following cases, state the type of inflation described.
  a) The unrest in Libya has resulted to an increase in the price of oil.
  b) The price of bread has gone up to Shs.60 due to Increase in the price of Wheat.
  c) A lot of Money in circulation has led to the general increase of price.
  d) A rise in price due to uneven growth in Some sectors of the economy.

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

• The following are types of internal and external environments (Solved)
  

  The following are types of internal and external environments. Technological, Business structure, Demographic and physical.In the table below , write the type of environment that suits the description.
  

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

• Record the following transactions in a two column cash bookand balance it off as at January 12^th2008 January 1 Started business with capital sh. 10,000...(Solved)
  

  Record the following transactions in a two column cash bookand balance it off as at January 12^th2008
  
  January 1 Started business with capital sh. 10,000 cash and sh. 25,000 bank overdraft
  January 2 bought stock in cash sh. 6,000
  January 3 cash sales sh. 2,500
  January 7 bought stock worth sh. 5,000 on credit
  January 12 withdrew cash from bank for office use sh. 4,000

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

• Atemo is the head of the marketing team at ABC Company that has recorded tremendous increase in volume of sales over the last four years....(Solved)
  

  Atemo is the head of the marketing team at ABC Company that has recorded tremendous increase in volume of sales over the last four years. Highlight four attributes that she possess.

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

• The following balances were extracted from the books of Asena Enterprises on 30^th June, 2006. ...(Solved)
  

  The following balances were extracted from the books of Asena Enterprises on 30^th June, 2006.
  
  Shs.
  Gross profit........................... 120,000
  Rent Income ............................100,000
  Dividends received..................... 200,000
  Salaries................................ 300,000
  Carriage outwards........................ 10,300
  Discount allowed .........................21,000
  
  Prepare Asena's Enterprises profit and loss account for the year ended 30^th June,2006.

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

• Study the diagrams below and answer the question that follows:- State the factors that may cause the above change from diagram (i) to (ii)(Solved)
  

  Study the diagrams below and answer the question that follows:-
  
  State the factors that may cause the above change from diagram (i) to (ii)

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

• The following information was extracted from MaweMbili traders for the year ended 31^st December, 2015 ...(Solved)
  

  The following information was extracted from MaweMbili traders for the year ended 31^st December, 2015
  
  KSH
  Machinery ..................460,000
  Cash in hand................ 80,000
  Debtors ....................130,000
  Creditors ...................60,000
  Prepaid salaries............ 20,000
  4 year loan .................280,000
  Accrued rent ................30,000
  Required:
  Prepare a balance sheet of Mawembili traders as at 31^st December, 2015

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

• The following transactions took place in the business of Darasile Traders in Kisumu year 2013.July 1^st: Started business with capital in cash Kshs.150,000.July 2^th: Opening...(Solved)
  

  The following transactions took place in the business of Darasile Traders in Kisumu year 2013.
  
  July 1^st: Started business with capital in cash Kshs.150,000.
  July 2^th: Opening a bank account and deposited Kshs.30,000.
  July 3^th: Bought buildings in cash Kshs.60,000.
  July 4^th: Borrowed a loan in cash Kshs.20,000.
  July 5^th: Bought stationery by cheque worth Kshs.6,000.
  July 6^th: Repaid part of the loan by cheque Kshs.10,000.
  
  Required:
  (i) Record the above transactions in their various ledger accounts.
  (ii) Prepare a trial balance.

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

• The following information relates to Murang‘a traders for the year ended 30^th September 2006. Prepare the business trading account for the year ended 30^th Sep 2006.(Solved)
  

  The following information relates to Murang‘a traders for the year ended 30^th September 2006.
  
  Prepare the business trading account for the year ended 30^th Sep 2006.

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

• The following information relates to Kuwa‘s business for the year ended 31st May 2010. Net profit Sh.20,000 Working capital Sh.30,000 Return on capital 20% Employed Determine the value of: (a) Capital...(Solved)
  

  The following information relates to Kuwa‘s business for the year ended 31st May 2010.
  Net profit Sh.20,000
  Working capital Sh.30,000
  Return on capital 20%
  Employed
  Determine the value of:
  (a) Capital employed.
  (b) Fixed assets.

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

• Identify the legislation meant to protect consumers that each of the following description refers to. Description Legislation (a) Ensures that traders or producers do not cheat...(Solved)
  

  Identify the legislation meant to protect consumers that each of the following description refers to.
  Description Legislation
  (a) Ensures that traders or producers do not cheat consumers by giving false descriptions of goods.
  (b) Prohibits traders and manufacturers from including substance that might harm consumers in a product.
  (c) Ensures that all weighing equipment are correct and accurate.
  (d) Ensures that the landlord‘s do not overcharge their tenants.

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

• Indicate the type of journal in which each of the following transactions would be recorded.(Solved)
  

  Indicate the type of journal in which each of the following transactions would be recorded.
  

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