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W White’s business has a rate of turnover of 7 times. Average stock is sh12,600. Trade discount (i.e. margin allowed) is 33¼% off all selling prices. Expenses are 66 ¾% of gross profit.
You are to calculate:
(a)Cost of goods sold.
(b)Gross profit margin.
(c)Turnover.
(d)Total expenses.
(e)Net profit.
Date posted:
December 14, 2021
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A sole trader’s capital position is as follows
Date posted:
December 14, 2021
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Approaches in preparing final accounts where there are insufficient records
Date posted:
December 14, 2021
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Give two reasons for incomplete records in accounting records
Date posted:
December 14, 2021
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From the following balance sheet, prepare cash flow statement of Abc Ltd for the ended 31/12/2009
Date posted:
December 14, 2021
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The accountant of Mamba Sports Club has extracted the following information from the books of account for the year ended 31 March 2009
Date posted:
December 14, 2021
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The following is the receipts and payments account of the Friendship Club for the year ended 31 December 2010
a)Prepare an income and expenditure account for the year ended 31 December 2009
(b)Prepare a balance sheet at that date
Date posted:
December 14, 2021
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Format for the financial account of a non profit making organisation
Date posted:
December 14, 2021
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Beta Ltd is reviewing the financial statements of two companies, Zeta Ltd and Omega Ltd. The companies trade as wholesalers, selling electrical goods to retailers on credit. Their most recent financial statements appear below.
Required:
a)Calculate for each company a total of eight ratios which will assist in measuring the three aspects of profitability, liquidity and management of the elements of working capital. Show all workings.
b)Based on the ratios you have calculated in (a), compare the two companies as regards their profitability, liquidity and working capital management.
c)Omega Ltd is much more highly geared than Zera Ltd. What are the implications of this for the two companies?
Date posted:
December 14, 2021
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Compute the relevant ratios for ABC ltd
Date posted:
December 14, 2021
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Mwanga and Sons Ltd is a small manufacturing firm owned by members of the family. The
following trial balance was extracted from the books of the company as at 31 March 2009:
Date posted:
December 10, 2021
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The following is the trial balance of Transit Ltd at 31 March 20X8.
Date posted:
December 10, 2021
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Differentiate between unlimited partnerships and limited companies
Date posted:
December 10, 2021
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The following was the partnership trial balance as at 30 April 2009:
5. On 30 April, the stock was valued at Sh.1, 275,000.
6. Salaries included the following partners’ drawings:
Rotich Sh.150, 000, Sinei Sh.120, 000 and Tonui Sh. 62,500
7. A difference in the books of Sh.48,000 had been written off at 30 April 2009 to general
expenses, which was later found to be due to the following clerical errors:
- Sales returns of Sh. 32,000 had been debited to sales returns but had not been posted to
the account of the customer concerned;
-The purchases journal had been undercast by Sh.80,000
8. Doubtful debts (for which full provision was required) amounted to Sh.30, 000 and Sh.40,
000 as at 31 October 2008 and 30 April 2009respectively.
9. On 30 April 2008 rates and rent paid in advance amounted to Sh.50, 000 and a provision of
Sh.15, 000 for electricity consumed was required.
Required:
a) Trading and profit and loss account for the year ended 30 April 2009.
b) Partners’ current accounts for the year ended 30 April 2009
c) Balance sheet as at 30 April 20019
Date posted:
December 10, 2021
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Alan, Bob and Charles are in partnership sharing profits and losses in the ratio 3:2:1 respectively
Date posted:
December 10, 2021
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A, B, and C are trading as partners sharing profits and losses in the ratio of 2:2:1. They have the following assets and liabilities at the book values and they wish to restate these values at market values and agreed values.
Date posted:
December 10, 2021
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The following list of balances as at 30 September 2009 has been extracted from the books of
Brick and Stone, trading partnership, sharing the balance of profits and losses in the proportions
3:2 respectively.
Required:
(a) Prepare a trading and profit loss account for the year ended 30 September 2009.
(b) Prepare a balance sheet as at 30 September 2009 which should include summaries of the
partners’ capital and current accounts for the year ended on that date.
Note: In both (a) and (b) vertical forms of presentation should be used.
Date posted:
December 10, 2021
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Draw up a profit and loss appropriation account for the year ended 31 December 2007
i. Net profits sh30,350
ii. Interest to be charged on capitals: W sh2,000; Psh1,500; H sh900
iii. Interest to be charged on drawings; W sh240; P sh180; H sh130
iv. Salaries to be credited: P sh2,000; H sh3,500.
v. Profits to be shared: W 50%; P 30%; H20%.
vi. Current accounts: balances b/f W sh1,860; P sh946; H sh717
vii. Capital accounts: balances b/f W sh40,000; P sh30,000; H sh18,000
viii. Drawings: W sh9,200; P sh7,100; H sh6,900.
Date posted:
December 10, 2021
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Read the following and answer the questions below.
A and B own a grocery shop. Their first financial year ended on 31 December 2002.
The following balances were taken from the books on that date:
Date posted:
December 10, 2021
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Bibi Maridadi owns and manages a small manufacturing business. The following balances have
been extracted from her books of account at 31 January 2009:
Required:
Using the vertical method, prepare Bibi Maridadi’s manufacturing, trading and profit and loss
account for the year ended 31 January 1986 and a balance sheet as at that date.
Date posted:
December 10, 2021