Get premium membership and access revision papers, questions with answers as well as video lessons.
Got a question or eager to learn? Discover limitless learning on WhatsApp now -
Start Now!
Acct 010 :Principles Of Accounting Question Paper
Acct 010 :Principles Of Accounting
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2015
KENYA METHODIST UNIVERSITY
END OF 1''st ''TRIMESTER 2015 (PT) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING FINANCE & INVESTMENT
UNIT CODE : ACCT 010
UNIT TITLE : PRINCIPLES OF ACCOUNTING
TIME: 2 HOURS
INSTRUCTIONS:
Answer question One and any other Two
Question One
Mr. Lane has given you the following balances extracted from his books as at 30th June 2008.
Sh.
Sales 265,900
Purchases 154,870
Rent 4,200
Lighting and heat expenses 530
Salaries and wages 51,400
Insurance 2,100
Buildings 85,000
Fixtures 1,100
Accounts Receivable 31,300
Sundry expenses 412
Accounts payable 15,910
Cash at bank 14,590
Drawings 30,000
Vans 16,400
Motor running expenses 4,110
Capital 114,202
Inventory 16,280
Required:
From the above balances, prepare his trial balance as at 30th June 2008.
(10marks)
Prepare his Trading, profit and loss A/c for the month. (10marks)
Prepare his balance sheet as at 30th June 208.
(10marks)
Question Two
The following bank statement was received by Mark Nganatha, a trader on 31st March 1990.
Debits Credits Balance
sh sh sh
Balance 84,000
Deposits 11,640 20,040
Deposits 1,745 21,785
Cheque No. 716 7,200 14,585
Chequre No. 717 1,360 13,225
Deposits 2,500 15,725
Cheque No.719 3,400 12,325
Bank charges 50 12,375
Cheque No. 721 2,840 9,435
Unpaid cheque 4,250 5,185
Deposits 3,600 8,785
Cheque No. 718 4,850 3,935
Standing order - Rent 5,000 1,065
His cash book (bank column only) had the following entries for March 1990
Cash book (bank column only)
Sh Sh
Balance b/f 8,400 Cheque No 716 7,200
Deposits 11,640 Cheque No 717 1,360
Deposits 1,745 Cheque No 718 4,850
Deposits 3,600 Cheque No 719 3,400
Deposits 4,285 Cheque No 720 2,610
Cheque No 721 2,840
Cheque No 722 3,180
You are informed that no error has been made in either the bank statement or the cash book. You are required to complete and balance the cash book as at
31st March 1990 and prepare a Bank Reconciliation statement.
Question Three
A THREE column cash book for a wine wholesaler is to be written up from the following details, balanced off, and the relevant discount accounts in the general ledger shown.
2008 March
1. Balance brought forward: cash sh 620, bank sh. 7,142
2. The following paid their accounts by cheque in each case deducting 5 percent cash discounts G. Slide sh. 260; P Fish sh. 320; T Old sh. 420 (all amounts are pre-discount)
3. Paid rent by cheque sh. 430
6. F. Black lent us sh. 5,000 paying by cheque
8. We paid the following accounts by cheque in each case deduction 2 ½
per cent cash discount: R white Sh. 720; G Green shs 960; L.Flip sh.
1,600. (all amounts are pre discount).
10. Paid motor expenses in cash sh. 81.
12. J. Pie pays his account of sh. 90 by cheque sh. 88 deducing sh.2 cash
Discount.
15. Paid wages in cash sh.580
18. The following paid their accounts by cheque in each case deducting 5% cash discount. A
Pony sh. 540; B Line & son sh 700; T. Owen sh 520 (All amounts are
pre discount.
21. Cash withdrawn from the bank for business use sh. 400
24. Cash drawings sh. 200
25. Bought fixtures paying by cheque sh. 720
Question Four
Explain the adjustments in the financial statements for the following:
Expenses accrued at year end
Incomes received in advance
Depreciation of fixed assets
Bad debt provision
Bad debts written off.
(10marks)
Distinguish between carriage inwards and carriage outwards. How are they treated in the financial statements?
(4marks)
Define and explain the relevance of the following accounting concepts:
Accrual concept
Consistency principle
Economic entity assumption
(6marks)
Question Five
Prepare journal entries from the following transactions and extract a trial balance
July:
1 Started business with sh. 5,000 in bank and sh. 1,000 cash.
2 Bought stationery by cheque sh. 75
3 Bought goods on credit from smart sh. 2,100
4 Sold goods for cash sh. 340
5 Paid insurance by cash sh. 290
7 Bought a computer on credit from Hott. Sh. 700
8 Paid expenses by cheque sh. 32
10 Sold goods on credit to Biggins sh. 630
11 Returned goods to Smart sh. 550
14 Paid wages by cash. Sh. 210
17 Paid rent by cheque sh. 225
20 Received a cheque sh. 400 from Biggins
21 Paid Hott by cheque 700
23 Bought stationary on credit from News Ltd 125
31 Sod goods on credit to F Tank sh. 645. (20marks)
More Question Papers
Popular Exams
Return to Question Papers