i)Safekeeping of valuable items commercial banks act as custodian of valuable items for their clients e.g wills, title, deeds & jewelery.
ii)They lend money to their clients in form of loans, overdrafts of discounting bills of exchange ad promising notes.
iii)They receive money deposits from their clients commercial banks operate three types of accounts for this purpose- savings, current and fixed deposit accounts.
iv)Facilitate international payments through letters of credit.
v)They advice their clients on financial and investment matters.
vi)They act as management trustees of properties of business of decreased clients.
vii)They act as referees for their clients during a credit status inquiry
Kavungya answered the question on September 26, 2019 at 07:31
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On 1st January 2012 Manga traders had 180,000 cash in hand and a bank credit balance of Shs.57,500. During the month the following transactions...
(Solved)
On 1st January 2012 Manga traders had 180,000 cash in hand and a bank credit balance of Shs.57,500. During the month the following transactions took place.
3rd Jan:Cash sales Shs. 2,800
4th Jan:A debtor settled his accent of sh. 90,00 by cheque
10th Jan:Paid Salaries shs. 40,000 in cash.
12th Jan:Took cash sh. 35,000 to settle on personal debt.
23rd Jan:Received a cheque shs. 8460 from Ouru distribution after deducting 6% cash discount.
24th Jan: Deposits shs. 10000 in the bank from office cash.
25th Jan: Purchased stock worth shs.8950 on credit from Ngumo distributors
26th Jan: Cash sales banked directly shs.38000
27th Jan: A cheque received on 4th from a debtors was dishonored. The bank charged him 2500.
29th Jan: Settled creditors account shs. 6000 b cheque less 3% cash discount.
31st Jan: Bank all cash except shs.40,000
Required:Prepared a three column cash book duly balanced
Date posted:
September 26, 2019
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Answers (1)
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Open the relevant ledger accounts using the following information.
1/2/2011 Started business with Kshs 10,000 in cash and Ksh 50,000 at bank.
2/2/2011 Bough goods on credit...
(Solved)
Open the relevant ledger accounts using the following information.
1/2/2011 Started business with Kshs 10,000 in cash and Ksh 50,000 at bank.
2/2/2011 Bough goods on credit from Lk traders worth Kshs 5,000.
4/2/2011 Withdrew from the bank Kshs 2000 for office use.
Date posted:
September 26, 2019
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Answers (1)
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Outline four challenges being faced by Kenya in the crucial stage of implementing the vision 2030.
(Solved)
Outline four challenges being faced by Kenya in the crucial stage of implementing the vision 2030.
Date posted:
September 26, 2019
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Answers (1)
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Highlight four circumstances under which a business person may decide to build his own warehouse instead of using a public warehouse.
(Solved)
Highlight four circumstances under which a business person may decide to build his own warehouse instead of using a public warehouse.
Date posted:
September 26, 2019
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Answers (1)
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Prepare a three column cash book from the following information for the month of May 2004 and balance it off.May 1 Balances b/d cash sh...
(Solved)
Prepare a three column cash book from the following information for the month of May 2004 and balance it off.
May 1 Balances b/d cash sh 50,000, Bank sh 180,000
May 1 Cash sales sh 3,000
May 2 Paid the following creditors by cheque, N Mwangi sh 1,500, J .Mwaniki sh 16,000, N Mugo sh 1,200 after deducting 10% cash discount in each case.
May 3 Received cheques from the following debtors after deducting 5% discount in each case E. Githinji sh 24,000, D.Nyamu sh 9,000, E. Mutua sh 1,400.
May 5 Paid for repairs in cash sh 16,000
May 10 Paid Juma in cash sh9,500
May 15 Banked sh 6,000 from the cash till
May 15 Received cash from P. Kavuniki sh 13,500 in full settlement of his account of sh 15,000.
Date posted:
September 26, 2019
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Answers (1)
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Highlight four benefits of having business enterprises located in one area.
(Solved)
Highlight four benefits of having business enterprises located in one area.
Date posted:
September 26, 2019
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Answers (1)
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Give four challenges that may face a business unit that does not file its documents.
(Solved)
Give four challenges that may face a business unit that does not file its documents.
Date posted:
September 26, 2019
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Answers (1)
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Highlight four reasons why interest is charged on borrowed capital.
(Solved)
Highlight four reasons why interest is charged on borrowed capital.
Date posted:
September 26, 2019
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Answers (1)
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Identify four differences between a supermarket and hypermarket.
(Solved)
Identify four differences between a supermarket and hypermarket.
Date posted:
September 25, 2019
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Answers (1)
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Outline four circumstances under which a trader would use porters to transport goods.
(Solved)
Outline four circumstances under which a trader would use porters to transport goods.
Date posted:
September 25, 2019
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Answers (1)
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Mention five reasons why M-Pesa is becoming a very popular means of payment in Kenya.
(Solved)
Mention five reasons why M-Pesa is becoming a very popular means of payment in Kenya.
Date posted:
September 25, 2019
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Answers (1)
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Identify four circumstances under which communication may be ineffective .
(Solved)
Identify four circumstances under which communication may be in effective .
Date posted:
September 25, 2019
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Answers (1)
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Highlight four reasons why a country would like to know the structure of it’s population.
(Solved)
Highlight four reasons why a country would like to know the structure of it’s population.
Date posted:
September 25, 2019
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Answers (1)
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The use of motor cycles transport is becoming very popular in both rural and urban areas of Kenya. Explain the limitation a business that relies...
(Solved)
The use of motor cycles transport is becoming very popular in both rural and urban areas of Kenya. Explain the limitation a business that relies on its use is likely to encounter.
Date posted:
September 25, 2019
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Answers (1)
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State four ways in which the government may promote local trade.
(Solved)
State four ways in which the government may promote local trade.
Date posted:
September 25, 2019
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Answers (1)
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Outline four advantages of a systematic arrangement of goods in a warehouse.
(Solved)
Outline four advantages of a systematic arrangement of goods in a warehouse.
Date posted:
September 25, 2019
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Answers (1)
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Give four reasons why discounts are granted.
(Solved)
Give four reasons why discounts are granted.
Date posted:
September 25, 2019
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Answers (1)
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The following trial balance was extracted from the books of Rafiki traders as at 31st December 2018.
(Solved)
The following trial balance was extracted from the books of Rafiki traders as at 31st December 2018.
Required:
(i) Prepare Rafiki traders trading profit and loss account.
(ii) A balance sheet as at 31st December 2018.
Date posted:
September 25, 2019
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Answers (1)
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By aid of a diagram, explain how price of a commodity is determined by the forces of demand and supply.
(Solved)
By aid of a diagram, explain how price of a commodity is determined by the forces of demand and supply.
Date posted:
September 25, 2019
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Answers (1)
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On 1st May 2018, Sosiot traders had Sh.25,000 Cash in hand and Bank overdraft of sh 15,000. During the month the following transactions took place.
(Solved)
On 1st May 2018, Sosiot traders had Sh.25,000 Cash in hand and Bank overdraft of sh 15,000. During the month the following transactions took place.
2018
May 3: Kipkurui ,a debtor settled his account of sh 12000 by cheque of sh 10,000
May 5: Paid rent by cash sh. 5000
May 6: Deposited sh. 2000 into the business bank account from the cash till.
May 8: Received sh 6000 Cash from Kamau, a debtor
May 10: Wanjiku a debtor settled her account of 15,000 by cheque, having been
allowed 20% discount.
May 15: Purchased Furniture worth sh 3,000 paying by cheque
May 18: Deposited sh 7,000 into the bank from private sources.
May 23: Received the following amounts in cash from debtors having deducted
cash discount of 5%. Kertich sh 7600, Brian sh 4750
May 25: Banked all the available Cash except sh 1000
Required:
Prepare a dully balanced three column cash book.
Date posted:
September 25, 2019
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Answers (1)