- Ensure that his signature is exactly like the specimen in the bank so that the bank does not question its genuineness.
- Ensure he has sufficient funds in his account before issuing any cheque.
- Ensure he countersigns against any alterations made on the cheque so that the payee is not blamed for them.
- Ensure that the amount in figures is exactly the same as in words to avoid doubt.
- Confirm the names of the payee before writing the cheque so that he can correctly identify himself in the bank.
- Alert the payee in case of a postdated cheque so that he does not deposit it before the due date.
Kavungya answered the question on September 27, 2019 at 08:43
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Give four reasons why plastic money is increasingly being used in business transactions.
(Solved)
Give four reasons why plastic money is increasingly being used in business transactions.
Date posted:
September 26, 2019
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Answers (1)
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The following are some of the source documents used in accounting; credit note issued, cash sale receipt, credit note received and invoice issued. Match each...
(Solved)
The following are some of the source documents used in accounting; credit note issued, cash sale receipt, credit note received and invoice issued. Match each of the following books of original entry with the relevant source document.
a)Sales returns book
b)Sales day book
c)Purchases returns book
d)Cash book
Date posted:
September 26, 2019
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Answers (1)
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On 1 -8-2010, Onyango bought goods on credit quoted at sh 200,000.Terms of sale were 20% trade discount and 10% cash discount if payment was...
(Solved)
On 1 -8-2010, Onyango bought goods on credit quoted at sh 200,000.Terms of sale were 20% trade discount and 10% cash discount if payment was made on 29 – 8- 2010
Calculate the amount paid if payment was made on 26 – 08 – 2010.
Date posted:
September 26, 2019
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Answers (1)
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Name the office machines used to perform the following functions.
a)To fold documents, place them in the envelope and seal.
b)Used to transmit printed messages...
(Solved)
Name the office machines used to perform the following functions.
a)To fold documents, place them in the envelope and seal.
b)Used to transmit printed messages such as Letters ,maps diagrams and photographs
c)Reproducing documents from a master copy(stencil)
d)Printing postage impressions on the envelopes
Date posted:
September 26, 2019
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Answers (1)
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Classify the following accounts as either real or nominal.
a)Delivery van
b)Purchases
c)Insurance premium
d)Commission income
(Solved)
Classify the following accounts as either real or nominal.
a)Delivery van
b)Purchases
c)Insurance premium
d)Commission income
Date posted:
September 26, 2019
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Answers (1)
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Tumetoka Mbali Traders maintains a petty cash book on imprest system with a float of kshs. 18,000. Reimbursement is usually made on the first day...
(Solved)
Tumetoka Mbali Traders maintains a petty cash book on imprest system with a float of kshs. 18,000. Reimbursement is usually made on the first day of the week. The following payments were made on the first week of June 2012
June 1st: Received Shs. 2,000 for reimbursement
3rd :Bought stamps for shs. 400
4th :Bought stationery for shs. 1,000
5th : Bought sugar for shs. 580 and paid postage shs. 850
6th : Bought tealeaves for shs. 500 and stationery for shs. 650
7th : Paid ostrich a creditor shs. 5,500
7th :Received cash for reimbursement
Required;
Prepare a petty cash book duly balanced using the following analysis columns, stationery, postage, travelling, staff tea, miscellaneous and ledger accounts.
Date posted:
September 26, 2019
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Answers (1)
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Explain five benefits that may accrue to a firm as a result of operating on large scale.
(Solved)
Explain five benefits that may accrue to a firm as a result of operating on large scale.
Date posted:
September 26, 2019
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Answers (1)
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Outline four limitations of the circular flow of income.
(Solved)
Outline four limitations of the circular flow of income.
Date posted:
September 26, 2019
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Answers (1)
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Recent data indicates that a large proportion of Kenya’s population comprises of the youth the ages of 10 to 20 years. State four benefits of...
(Solved)
Recent data indicates that a large proportion of Kenya’s population comprises of the youth the ages of 10 to 20 years. State four benefits of this to the country.
Date posted:
September 26, 2019
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Answers (1)
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Savings and credit cooperatives have been registering an increasing number of members. Explain five reasons for such a development.
(Solved)
Savings and credit cooperatives have been registering an increasing number of members. Explain five reasons for such a development.
Date posted:
September 26, 2019
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Answers (1)
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During a trader’s workshop, a speaker presented a speech on ethical issues in business. Highlight some ethical issues that he may have raised, affecting business.
(Solved)
During a trader’s workshop, a speaker presented a speech on ethical issues in business. Highlight some ethical issues that he may have raised, affecting business.
Date posted:
September 26, 2019
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Answers (1)
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Explain five ways in which the central bank regulates the operations of commercial banks in Kenya.
(Solved)
Explain five ways in which the central bank regulates the operations of commercial banks in Kenya.
Date posted:
September 26, 2019
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Answers (1)
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A wholesaler who buys goods from the producers incurs expenses. Outline four such expenses.
(Solved)
A wholesaler who buys goods from the producers incurs expenses. Outline four such expenses.
Date posted:
September 26, 2019
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Answers (1)
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Explain five services that are offered by commercial banks to their customers.
(Solved)
Explain five services that are offered by commercial banks to their customers.
Date posted:
September 26, 2019
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Answers (1)
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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)