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Fundamentals Of Accounting Question Paper
Fundamentals Of Accounting
Course:Bachelor Of Commerce
Institution: Kenyatta University question papers
Exam Year:2008
KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
INSTITUTIONAL BASED PROGRAM
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
BAC 100: FUNDAMENTALS OF ACCOUNTING I
DATE: Wednesday 31st December, 2008
TIME: 11.00 a.m. – 1.00 p.m.
INSTRUCTIONS
Answer ALL the questions.
1.
The ledger account of Boma Company on December 31, the end of the current
financial year are as follows:
Cash
shs. 177,600
Accounts payable
320,000
Accounts Receivable
533,400
Capital
1,000,000
Inventory
1,214,000
Retained Earnings
1,155,500
Prepaid Insurance 24,800
Sales
7,905,000
Store supplies
21,200
Purchases
5,137,000
Store equipment
1,662,000
Office salaries expense
522,000
Accumulated Depreciation:
Rent expense
25,000
Store equipment 846,000
Heating & lighting expense
174,000
Sales salaries expense
828,000
Miscellaneous General expense
113,500
Advertising expense
233,000
Miscellaneous selling expense 16,000
Additional information
(a)
Inventory December 31 2008 shs 1 000 000
(b)
Insurance expired during the year shs 15 600
(c)
Store supplies on hand December 31 shs 5 200
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2
(d)
Accrued salaries for office salaries shs 12 000 and sales salaries
shs 15 000
(e)
Depreciation store equipment at 6% on cost.
Required:
(a)
A 10 – column worksheet
[16 marks]
(b)
Adjusting Journal Entries
[10 marks]
(c)
Closing Journal Entries
[4 marks]
2.
Kitui Company was established on December 15 2008. It sells merchandise on
account and the sales transactions for December are shown below the terms of
sale are 1/10 n 30 FOB destination
December 20 Sold merchandise on account to Kiilu Invoice no 1, shs 84,000
22 Sold merchandise on account to Sheila invoice no 2, shs 192,500
24 Sold merchandise to Mutua on account invoice no 3, shs 222,250
25 Issued credit note no 1 for shs 7,000 to Kiilu for merchandise returned.
27 Sold merchandise on account to Charles Invoice no 4, shs 175,000
28 Sold merchandise on credit to Umira invoice no 5 shs 105,000
28 Issued credit not no 2 for shs.10,500 to Sheila for merchandise returned
30 Sold merchandise on account to Sheila invoice no 6 shs.204,750.
30 Issued credit note no 3 for shs 5,250 to Charles for damages to
merchandise caused by faulty packing.
31 Sold merchandise on account to Mutua invoice no 7, shs 69,650.
Required
(a)
The sales Journal.
[7 marks]
(b)
The sales Returns journal
[3 marks]
(c)
Post the entries to the sales ledger
[5 marks]
(d)
The total accounts receivable control account
[3 marks]
(e)
The sales account
[2 marks]
Q3.
Kamau does not maintain proper books of account but his bank account details for
the year ended December 31 2008 are shown here-below:
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3
Shs
shs
Balance 01.01.2008
48,600
Payments to creditors for goods 3,538,440
Receipts from debtors 4,552,320
Rent
198,000
Balance 31.12.08
72,240
Rates
106,800
Miscellaneous expenses
45,000
_________
Drawings
784,920
4,673,160
4,673,160
All of the business sales have been paid into the bank except shs 1,155,600 out of
which Kamau has paid salaries to staff shs 656,640 own drawings shs 139,680
and purchase of goods shs 359 280.
The following additional information is also given:
31.12.07
31.12.08
Inventory
shs
1,663 440
shs
1,817,280
Accounts receivable
1,083,720
1,034,880
Accounts payable
674,880
886,680
Rates prepaid
25,200
27,000
Rent owing
18,000
-
Fixtures
300,000
270,000
Required
A set of final accounts for Kamau.
[20 marks]
……………..
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