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Certificate Course In Management Question Paper

Certificate Course In Management

Course:Accounting And Finance For Non-Accountants

Institution: Kenya Institute Of Management (Kim) question papers

Exam Year:2011

CERTIFICATE COURSE IN MANAGEMENT

SEPTEMBER 2011 EXAMINATION.

SUBJECT:PRINCIPLES OF ACCOUNTS: CBM 2/ CMM2/ CCM 101

DATE: 9TH SEPTEMBER 2011

TIME: 3 HOURS

INSTRUCTIONS

1. Write your index number n the space provided in the answer booklet.
2. Answer all questions
3. All questions carry equal marks.
4. Candidates should show their calculations clearly.
5. NO writing should be done on this question paper.
6. Candidates who break KIM examination rules and regulations or commit any
malpractice will be DISQUALIFIED.

1.Explain the main classifications accounts and show how the double entry role apply each case. (6 marks)

b) Explain reasons why the balance shown by the bank statement may not agree with that shown by the cash book (bank column) (8 marks)

c) Write short notes on

i) Accrued and prepaid expenses
ii) Provision and reserves
iii) Depreciation and bad debts (6 marks)

2. Snow man and sons purchased a plant for Shs 40000 on 1st January 05. They spent
Shs 4999 on its installation. The plant was bought in use from 1st April 05. The market value of the plant on 1-1-06 was Shs 45000, charge depreciation at 10% p.a on straight line method

Required:

a) plant account for four years (8 marks)
ii) Depreciation account for four years (4 marks)

(b) Define the term trial balance and discuss the errors that affect it. (8 marks)

3. From the following particulars write up, as they would appear in the general ledger of Mr.Osogo.

i) Sales or debtors account
ii) Purchases or creditor's account.

2008
1st Jan. Shs.

Sales Ledger balances 15000
Purchases ledger balances 11000

31st Jan

Sales 54000
Purchases 42000
Cash and cheque received from customers 37000
Discount allowed 2500
Payments to creditors 24000
Discount received 1600
Bills receivables received 7000
Bills payables issued 5000
Returns inwards 800
Returns outwards 600
Rebate allowed to customers 300
Rebate allowed by creditors 200
Sales write off 600
Bills receivables dishonored 2000
Interest charged to customers 50
Customers cheques dishonored 1000 (20 marks)

4. On 31st Dec. 04 the bank column of the cash book of Karate showed a credit balance of Shs 236.200. On examination of the cash book and bank statement, the following were discovered.

a) Cheques received and recorded in the cash book but not set to the bank for collection
amounted to Shs. 29800

b) A cheque of Shs. 14000 paid into the bank on Nov. 04 had been debited by the bank
in Dec. 04

c) Cheques issued amounting to Shs 350400 in Dec. 04 had been entered in the cash
book as Shs 345000 and the cheques were not presented to the bank for payment
until Jan 05

d) Interest of Shs. 17600 charged by the bank was not recorded in the cash book.

e) The payment side of the cash book had been undercast by Shs 2000

f) Shs 69800 was entered in the cash book as paid into the bank on 31/04 but not
credited by the bank until the following day.

g) Payment received from a customer direct by the bank Shs 54600 but no entry was made in the cash book.

REQUIRED.

i) Adjusted cash book (12 marks)
ii) Bank reconciliation statement. (8 marks)

5. a) Discuss any five books and five documents of original entry (10 marks)

b) Discuss the advantages of using the imprest system (10 marks)

Certificate Course In Management Question Paper

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