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- 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
- List the ways in which the use of containers is sea transport enhances security of cargo.(Solved)
List the ways in which the use of containers is sea transport enhances security of cargo.
Date posted: September 27, 2019. Answers (1)
- Anyango is employed as a saleslady by Biashara Traders. She is paid a basic salary of Sh.3,000 per month and a commission based on her...(Solved)
Anyango is employed as a saleslady by Biashara Traders. She is paid a basic salary of Sh.3,000 per month and a commission based on her sales as follows:-
1.5% on the first Sh.100,000
2% on the next Sh.50,000
2.5% on the next Sh.75,000
3% on any sales above Sh.225,000
During the year 2009, Anyango received a monthly income of Sh.41,575.
Calculate her total sales for the year 2009 (show all your calculations).
Date posted: September 26, 2019. Answers (1)
- The following diagram shows the equilibrium price of good X as set by the forces of demand and supply.
Suppose the government sets the maximum price...(Solved)
The following diagram shows the equilibrium price of good X as set by the forces of demand and supply.
Suppose the government sets the maximum price at Sh.100 which is below the equilibrium price, highlight four effects of such a move.
Date posted: September 26, 2019. Answers (1)
- 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. Answers (1)
- The following information was extracted from the books of KM Stores.
Rate of stock turnover 3 times
Opening stock Sh.80,000
Closing stock Sh.100,000
Mark-up 20%
Determine the...(Solved)
The following information was extracted from the books of KM Stores.
Rate of stock turnover 3 times
Opening stock Sh.80,000
Closing stock Sh.100,000
Mark-up 20%
Determine the gross profit.
Date posted: September 26, 2019. Answers (1)
- Indicate the term described by the following statements.
a)Inability of a business to meet its financial obligations.
b)A company that acquires 51% or more shares of...(Solved)
Indicate the term described by the following statements.
a)Inability of a business to meet its financial obligations.
b)A company that acquires 51% or more shares of another company.
c)A business that takes over another business by buying off all its assets and liabilities.
d)A business grants another right to manufacture and distribute its branded products using its name.
Date posted: September 26, 2019. Answers (1)
- 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. Answers (1)
- Determine the missing figures represented by Q, R, S and T.
(Solved)
Determine the missing figures represented by Q, R, S and T.
Date posted: September 26, 2019. Answers (1)
- The following trial balance was extracted from the books of Mawego Traders 31st December 2010.
Prepare:
i)Profit and loss account for the year ended 31st December 2010.
ii)Balance...(Solved)
The following trial balance was extracted from the books of Mawego Traders 31st December 2010.
Prepare:
i)Profit and loss account for the year ended 31st December 2010.
ii)Balance sheet as at 31st December 2010.
Date posted: September 26, 2019. Answers (1)
- 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. Answers (1)
- The following balances were extracted from the books of Watber Traders as at 31st December, 2009.
Additional information:
On 31st December, 2009 Watber Traders receiver cheques amounting...(Solved)
The following balances were extracted from the books of Watber Traders as at 31st December, 2009.
Additional information:
On 31st December, 2009 Watber Traders receiver cheques amounting to Sh 40,000 From debtors as part payment of their accounts
Prepare Watber Traders balance sheet as at 31st December,2009.
Date posted: September 26, 2019. Answers (1)
- The following account balances were obtained from the books of Kaswanga Traders on 30th June 2011.
Sh
Land and buildings - 200,000
Current assets - 420,000
Furniture - ...(Solved)
The following account balances were obtained from the books of Kaswanga Traders on 30th June 2011.
Sh
Land and buildings - 200,000
Current assets - 420,000
Furniture - 60,000
Motor car - 240,000
Capital - 480,000
Current liabilities - 440,000
Required : Prepare a trial balance for Kaswanga Traders as at 30th June 2011
Date posted: September 26, 2019. Answers (1)
- Record the following transactions in a two column cash book of Magunga Traders and balance it off.
2012
January 1 – Balance b/d - cash...(Solved)
Record the following transactions in a two column cash book of Magunga Traders and balance it off.
2012
January 1 – Balance b/d - cash sh 10,000
- bank sh 25,000
January 2 – Bought stock in cash sh 6,000
January 7 – Cash sales shs 2,500
January 12 – With drew cash from bank for office use sh 4,000
January 1st – Paid wages in cash sh . 3,000
January 31st – Received sh 4,500 from Otaro, a debtor by cheque
Date posted: September 26, 2019. Answers (1)
- The following information related to businesses A,B ,Cand D
Determine the figures represented by M,N,P, and Q
(Solved)
The following information related to businesses A,B ,Cand D
Determine the figures represented by M,N,P, and Q
Date posted: September 26, 2019. Answers (1)
- State the type of insurance policy described in each case.
a)Premium are paid over a stated period with the sum assured payable when insured dues
b)Covers...(Solved)
State the type of insurance policy described in each case.
a)Premium are paid over a stated period with the sum assured payable when insured dues
b)Covers a vehicle against all losses arising from its authorized use.
c)Covers loss, damage or injury accidentally caused to other people by the insured , His property, employees, pets or agents.
d)Covers goods and money lost in private and commercial premises.
Date posted: September 26, 2019. Answers (1)
- The following information relates to Bizna Distributor Company for the year ended 31stDec 2009
shs
Gross profit 600,000
Opening stock 285,000
Sales 2,400,000
Purchases 1,830,000
Expenses 360,000
Closing stock ...(Solved)
The following information relates to Bizna Distributor Company for the year ended 31stDec 2009
shs
Gross profit 600,000
Opening stock 285,000
Sales 2,400,000
Purchases 1,830,000
Expenses 360,000
Closing stock 315,000
Fixed assets 400,000
Debtors 900,000
Bank 35,000
Current liabilities 438,000
Required calculate
i) Margin
ii) Rate of stock turnover
iii) Return on capital employed
iv) Current ratio
Date posted: September 26, 2019. Answers (1)
- The following Trial Balance was extracted from the books of Kisumu Auto spares as at 31st Oct 2011
Stock on 31st October 2011 was sh. 80,200
Required,
(i)Prepare...(Solved)
The following Trial Balance was extracted from the books of Kisumu Auto spares as at 31st Oct 2011
Stock on 31st October 2011 was sh. 80,200
Required,
(i)Prepare Trading ,Profit and Loss account for the year ended 31st Oct 2011
(ii)Prepare Balance sheet as at 31st October 2011
Date posted: September 26, 2019. Answers (1)
- Using a diagram, describe the effects of outward shift in supply curve on equilibrium price and quantity.(Solved)
Using a diagram, describe the effects of outward shift in supply curve on equilibrium price and quantity.
Date posted: September 26, 2019. Answers (1)
- Outline four distinctions between monopolistic competition and oligopoly. (Solved)
Outline four distinctions between monopolistic competition and oligopoly.
Date posted: September 26, 2019. Answers (1)
- 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. Answers (1)