Get premium membership and access revision papers, questions with answers as well as video lessons.
Bust 121:Fundamentals Of Financial Accounting Question Paper
Bust 121:Fundamentals Of Financial Accounting
Course:Bachelor Of Education Arts
Institution: Chuka University question papers
Exam Year:2010
INSTRUCTIONS:
Attempt all the Questions.
1. (a) What are the importance of a trial balance to a trader. [5 marks]
(b) On 1st January 2007, the statement of financial position of Njeru was as follows:
Kshs. Bills payable 18,000 Creditors 8,900 Capital 34,000 Cash 19,500 Debtors 11,400 Office Equipment 30,000
Njeru completed the following transactions during January 2007.
Jan 2 Paid rent for his office Ksh.600 cash 3 Received a cheque for Ksh.3,000 from debtors 10 Paid creditors Ksh.3,500 cash 12 Purchased furniture for Ksh.5,000 cash 20 Credit sales to customers Ksh.7,000 25 Paid electricity Ksh.400 and telephone Ksh.750 cash 32 Withdrew Ksh.700 for personal use in cash
2
Required:
(i) Journal the above and open the ledger accounts. [6 marks] (ii) Post the above transactions into the ledger and balance off the accounts. [10 marks] (iii) Extract a trial balance. [4 marks]
2. The following balances were extracted from the books of Kamano, a sole trader, on 30th June 2008.
Shs. Capital 80,000 Drawings 6,000 Plant and machinery as at 1st July 2007 20,000 Additional plant and machinery as at 1st January 2008 5,000 Stock on 1st July 2007 15,000 Purchases 82,000 Returns inwards 2,000 Furniture and fixtures 5,000 Sundry debtors 20,000 Carriage outward 500 Freight and duty 2,000 Trade expenses 800 Printing and stationery 4,600 Rent, rates and taxes 4,600 Sundry creditors 10,000 Sales 120,000 Return outwards 1,000 Postage and fax 800 Provision for doubtful debts 800 Rent of premises sublet during the year 1,600 Insurance 700 Salary and wages 21,300 Cash in hand and at bank 26,700
Additional information
(i) Stock on 30th June 2008 was valued at Ksh.14,000.
(ii) Bad debts written off Ksh.600.
(iii) Provision for doubtful debt is to be maintained at 5% on sundry debtors.
(iv) Provide depreciation on furniture and fixtures at 5% per annum and on plant and machinery at 20% per annum.
3
(v) Insurance prepaid was Ksh.100.
Required:
(a) Trading, Profit and loss account for the year ended 30th June 2008. [12 marks] (b) Balance sheet as at 30th June 2009. [8 marks] (c) Why is a balance sheet important to a business person? [5 marks]
3. (a) On March 2003, Ksh.10,000 was handed to Paul, a Petty Cashier, to meet the disbursement for the month. The following expenses were recorded:-
- March 1st, Cleaning KSh.375, telephone Ksh.250, meals Ksh.580, stationery Ksh.600, bus fare Ksh.320.
- March 7th Postage Ksh.500, telephone Ksh.600, stationery Ksh.570.
- March 11th, Bus fare Ksh.1,100, meals Ksh.2,300, postage Ksh.1,000, telephone Ksh.500.
- March 14th, Telephone Ksh.1,200, bus fare Ksh.600, meals Ksh.550.
- March 21st Telephone Ksh.450, stationery Ksh.980, postage Ksh.750, meals Ksh.400.
- March 28th Bus fare Ksh.500, postage Ksh.300.
Required:
Prepare the petty cash book and balance it as on 31st March then restore the imprest.
More Question Papers
Popular Exams
Return to Question Papers