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  • The Wide Trading Company Limited has an authorised capital of Sh.500,000 divided into 5,000 ordinary shares of Sh.100 each. On 1 January 2001, the Board of directors...(Solved)

    The Wide Trading Company Limited has an authorised capital of Sh.500,000 divided into 5,000 ordinary shares of Sh.100 each. On 1 January 2001, the Board of directors decided to issue 4,000 shares at Sh.125 each payable as Sh.50 on application. Sh.50 on allotment (including the Sh.25 premium) and Sh.25 on first and final call. The applications were receivable on 20 January 2001 when allotment was made. The allotment money was receivable by 15 February 2001. The first and final call was made on 15 March 2001 and the call money receivable by 31 March 2001. Applications were received for 6,000 shares. The directors decided to refund money for 1,000 shares and the other applicants were allotted prorata with the excess money utilised to meet part of the allotment money. The balance of the allotment money was received on the due date. The first and final call was made and the call money received on the due date except for allotees of 200 shares. The 200 shares with calls arrears were forfeited on 10 April 2001 and sold for cash at Sh.85 eacg ib 12 April 2001. Note: No other transactions took place during the above period. Required: i) Application and Allotment Account, First and Final Call Account, Ordinary Share Capital Account. Share Premium Account, Calls in Arrears Account. Forfeited Shares Account and the bank account. ii) Balance sheet as at 12 April 2001

    Date posted: November 16, 2018.  Answers (1)

  • Explain the following terms: (i) Share premium (ii) Rights issue(Solved)

    Explain the following terms: (i) Share premium (ii) Rights issue

    Date posted: November 16, 2018.  Answers (1)

  • Atieno, Babu and Chesire have been trading in partnership sharing profits/losses in the ration of 5:3:2 respectively. On 1 April 2000 they admitted their manager, Dagana...(Solved)

    Atieno, Babu and Chesire have been trading in partnership sharing profits/losses in the ration of 5:3:2 respectively. On 1 April 2000 they admitted their manager, Dagana as a partner and the profit sharing ratio was changed to 4:3:2:1 FOR Atieno, Babu, Chesire and Dagana respectively. The partners valued the goodwill at Sh.510,000. Dagana paid Sh.200,000 as capital and his share of goodwill, which should be based on capital contributions. The partners do not wish to retain the goodwill account after admission of Dagana. The admission of Dagana has not been fully recorded other than the cash receipt of Sh.376,500. The following is the trial balance of the partnership as at 31 March 2001: famay2009.png Notes: 1) Depreciation on furniture and fittings and motor vehicles is at 10% and 20% on reducing balance respectively. 2) The closing stocks were valued at Sh.560,000. 3) Accrued salaries and wages and telephone bills amounted to Sh.24,000 and Sh.14,000 repectively. 4) Prepaid subscriptions and rates amounted to Sh.5,000 and Sh.25,000 respectively. 5) The partners decided that Dagana should be given a monthly salary of Sh.20,000 for the whole year from 1 April 2000 to 31 March 2001. 6) Dagana took goods for own use at cost amounting to Sh.185,000. No entry has been made in the books. 7) The old partners shared the cash paid by Dagana for part of his goodwill. Required: a) Trading, profit and loss account for the year ended 31 March 2001. (10 marks) b) Partners capital accounts. c) Partners current accounts. d) Balance sheet as at 31 March 2001.

    Date posted: November 16, 2018.  Answers (1)

  • State how liabilities, provisions and reserves are to be included and shown in the financial statements of a company(Solved)

    State how liabilities, provisions and reserves are to be included and shown in the financial statements of a company.

    Date posted: November 16, 2018.  Answers (1)

  • Explain giving examples the distinguishing features of liabilities, provisions and reserves(Solved)

    Explain giving examples the distinguishing features of liabilities, provisions and reserves.

    Date posted: November 16, 2018.  Answers (1)

  • Why is not advisable to grow vegetables especially sukuma week on roadside?(Solved)

    Why is not advisable to grow vegetables especially sukuma week on roadside?

    Date posted: November 16, 2018.  Answers (1)

  • Discuss six factors affecting the validity of a test instrument

    Discuss six factors affecting the validity of a test instrument.

    Date posted: November 16, 2018.  

  • Kamba ya bendera huitwaje kwa kiswahili?

    Kamba ya bendera huitwaje kwa kiswahili?

    Date posted: November 16, 2018.  

  • Nzioka is a grocer who had not kept complete books of account. The following was a summary of his bank statements for the ear ended...(Solved)

    Nzioka is a grocer who had not kept complete books of account. The following was a summary of his bank statements for the ear ended 31 October 2000: fadec42008.png The following information is also available 1. Trading receipts consists partly of cash and party of cheques. During the year. Nzioka had paid out of his cash takings wages amounting to Sh.590.000 and sundry expenditure of Sh 28.000. He retained Sh.600 a week (assume 52 ~weeks in a year) pocket money and maintained a balance of Sh.4.000 in the till tot-change. The balance of his takings. together with cheques amounting to Sh.50,000 which he had cashed out of his takings was paid into the bank. 2. Cheque drawn payable to trade creditors. But not presented at I November 1999 amounted to Sh56000 and at 3I October 2000 Sh.64.000. 3. All dishonoured cheques were re-presented and honoured during the year. 4. The loan interest was paid to the lender who had lent Nzioka Sh.800.000 some years ago at a rate of 3°o p.a. The interest was duly paid half-yearly on 31 January and 31 July and the loan was still outstanding at the close of the year. 5. Discounts allowed by trade creditors amounted to Sh.96.000 and those allowed to debtors were Sh. 104.000. fadec4b2008.png Required: (a) A statement of Nzioka's capital on 1 November 1999. (b) Profit and loss account for the year ended 31 October 2000 and a balance sheet at that date.

    Date posted: November 16, 2018.  Answers (1)

  • The following trial balance was extracted from the books of Literary and, Philosophical Society as at 30 September 2000(Solved)

    The following trial balance was extracted from the books of Literary and, Philosophical Society as at 30 September 2000: fadec32008.png Additional information: 1: The bar stock was valued at Sh.642.800 as at 30 September 2000. 2. It is expected that of the debtors for subscriptions, Sh.43.600 will not be collectable. 3. The interest account is net. The loan is at a concessional rate of 4% while I0% has been earned on the deposit account. No changes have taken place all year in the principal sums involved. 4. An invoice for Sh.43.000 of wine had been omitted from the records at the close of the year although the wine had been included in the bar stock valuation. 5.Depreciation for the rear is to be provided as follows: Furniture and fittings Sh. 194.000 Projectors. Cameras etc. Sh. 19.000 Required: (a) Bar and restaurant trading account for the year ended 30 September 2000. (b) An income and expenditure account for the year ended 30 September 2000. (c) A balance sheet as at 30 September 2000.

    Date posted: November 16, 2018.  Answers (1)

  • Munyah Ltd. is an expanding company and the following accounts relate to its operations for the years 1999 and 2000:(Solved)

    Munyah Ltd. is an expanding company and the following accounts relate to its operations for the years 1999 and 2000: fadec22008.png fadec2b2008.png Required: (i) Compute six accounting ratios for both 1999 and 200(1 which you feel would be of particular value in assessing the Profitability and Liquidity of Munyah Ltd. (ii) Comment on the current position of the company with the aid of the accounting ratios computed in (i) above and any other information that you consider to be relevant.

    Date posted: November 16, 2018.  Answers (1)

  • List the main advantages of ratio analysis(Solved)

    List the main advantages of ratio analysis.

    Date posted: November 16, 2018.  Answers (1)

  • The following balances were extracted from the books of Wamu Traders Ltd.as at 30 September 2000(Solved)

    The following balances were extracted from the books of Wamu Traders Ltd.as at 30 September 2000: fadec12008.png The following additional information is available: 1. Depreciation is provided annually on the cost of fixed assets held at the end of the financial year at the following rate: Freehold buildings 20% Fixtures and fittings 10% 2. The trade debtors balance includes Sh. 10,000 due from Musa who has now been declared bankrupt. In the circumstances, it has been decided to write the debt off as a bad debt. 3. The provision for doubtful debts as at 30 September 2000 is to be 5°,% of trade debtors 4. Establishment expenses prepaid at 30 September 2000 amounted to Sh.4,000. 5. Administration expenses accrued at 30 September 2000 amounted to Sh.7.000. 6. The company paid the interest on the loan stock for the year, ended 30 September 2000 on 30 October 2000. 7. Closing stock was valued at Sh.560,000. 8. The company's directors propose that the preference share dividend be paid and a dividend of 10% the ordinary shares he paid. Required: (i) Trading and profit and loss account and appropriation account for the sear ended 30 September 2000 of Wamu Traders Ltd. (ii) Balance sheet as at 30 September 2000.

    Date posted: November 16, 2018.  Answers (1)

  • Briefly state the reasons why a company would not wish to distribute all its profits to its shareholders(Solved)

    Briefly state the reasons why a company would not wish to distribute all its profits to its shareholders.

    Date posted: November 16, 2018.  Answers (1)

  • Two accounting concepts or conventions could clash or there could be inconsistency between them. Give two examples of such situations and explain how the inconsistency should be resolved.(Solved)

    Two accounting concepts or conventions could clash or there could be inconsistency between them. Give two examples of such situations and explain how the inconsistency should be resolved.

    Date posted: November 16, 2018.  Answers (1)

  • Define the following accounting concepts and for each explain their implication in the preparation of financial Statements. (i) The Going concern concept. (ii) Business entity concept. (iii) Materiality. (iv)...(Solved)

    Define the following accounting concepts and for each explain their implication in the preparation of financial Statements. (i) The Going concern concept. (ii) Business entity concept. (iii) Materiality. (iv) Realisation.

    Date posted: November 16, 2018.  Answers (1)

  • Joyce Njeri runs a City Market stall selling curios of all descriptions. Most of her sales are for cash, although regular customers are allowed credit. No...(Solved)

    Joyce Njeri runs a City Market stall selling curios of all descriptions. Most of her sales are for cash, although regular customers are allowed credit. No double entry accounting records have been kept, but the following information is available. Net Assets Summary at 31 March 1999 fa42008.png Additional information: 1. Joyce Njeri bought a new motor van in January 2000 receiving a part-exchange allowance of Sh.1,800,000 for her old van. A full year's depreciation is to be provided on the new van, calculated at 20% on cost. 2. Joyce Njeri has taken Sh.50,000 per week for her personal use. She also estimates that petrol for the van, paid in cash, averages Sh.10,000 per week. 3. Other items paid in cash during the year were: - Sundry expenses Sh.24, 000 - Repairs stall roof Sh.20 1,000 4. Joyce Njeri makes a gross profit of 40% on selling prices. She is certain that no goods have been stolen but remembers that when her friend Anne Mwende was getting married, she gave her a wedding gift of curios worth Sh.100,000. Earlier in the year, she had presented curios worth Sh.200,000 to her mother to be sold at her brother's university fees fundraiser. Both these figures are stated at selling prices. 5. Trade debtors and creditors at 31 March 2000 are Sh.320,000 and Sh.233,000 respectively, and cash in hand amounts to Sh.39,000. No stock count has been made and there are no accrued or prepaid expenses. fa4b2008.png Interest amounting to Sh.27, 000 on bank overdraft for six months ended 31 March 2000 was debited in the bank statement on 1 April 2000. Required: Joyce Njeri's trading and profit and loss account for the year to 31 March 2000 and a balance sheet as at that date. (Assume a 52-week year).

    Date posted: November 16, 2018.  Answers (1)

  • Kamau and Kimani are partners sharing profits and losses in the ratio 3:2 respectively. The partnership agreement provides for Kimani to receive a salary of Sh.4,000,000...(Solved)

    Kamau and Kimani are partners sharing profits and losses in the ratio 3:2 respectively. The partnership agreement provides for Kimani to receive a salary of Sh.4,000,000 per annum, and interest on capitals for both partners at 5% per annum. The partnership balance sheet as at 31 December 1998 was as follows: Fa32008.png On I April 1999 Kimata was admitted to the partnership. He had been a salaried employee, earning Sh.8, 000,000 per annum. The terms of his admission to the partnership were as follows: 1. Kimata should introduce Sh. 12,000,000 in cash as capital into the business. 2. Goodwill should be valued at Sh.14, 000,000 for the purpose of his admission. It was agreed that goodwill should not be included in the balance sheet of the new partnership. 3. Kimata should receive a salary as a partner of Sh.6 , 000,000 per annum. Kimani's salary should be raised to Sh.6, 000,000. 4. Interest on capital should be raised from 5% to 6% per annum and calculated on the capital accounts after the elimination of goodwill. 5. The new profit sharing ratio for Kamau, Kimani and Kimata should be 4:2:1 respectively. In preparing the draft financial statements for the year ended 31 December 1999, the partnership accountant, Otieno, calculated that the partnerships profit for the year was Sh.55, 155,000, and that the working capital of the business as at 31 December 1999 was: Fa3b2008.png Profit is assumed to accrue evenly during the year. Partners cash drawings for the year were Kamau Sh.23,705,000, Kimani Sh.19,525,000 and Kimata Sh.8,250,000. Required: (a) The profit and loss appropriation account for the year ended 3 1 December 1999. (b) The current and capital accounts of the partners for the year ended 31 December 1999. (c) Balance Sheet as at 31 December 1999.

    Date posted: November 16, 2018.  Answers (1)

  • Mr. Ancentus Okwengo is the sole proprietor of a small business. The following trial balance was extracted from his books at 31 March 2000.(Solved)

    Mr. Ancentus Okwengo is the sole proprietor of a small business. The following trial balance was extracted from his books at 31 March 2000. Fa22008.png Additional information: 1. Closing stock on 3 1 March 2000 was Sh.2, 008,000. Loose tools at valuation Sh.384, 000. 2 .Provision is to be made for the following amount owing on 3 1 March 2000: Electricity and power Sh.192,000. 3. Payments in advance on 31 March 2000 were as follows: Van licenses Sh.2,520 and rates Sh.13,800. 4. Depreciation on plant and machinery and delivery vans is to be provided at the rate of 20% and 25% respectively on cost at the end of the year. 5. Bad debts amounting to Sh.26,000 are to be written off and the provision for doubtful debts is to be 10% of trade debtors. Required: A ten-column worksheet for the year ended 31 March 2000.

    Date posted: November 16, 2018.  Answers (1)

  • How does play activities help in learning of music and creative arts activities?

    How does play activities help in learning of music and creative arts activities?

    Date posted: November 16, 2018.  

  • How can a teacher teach about colours to children with visual impairment in an inclusive setting?

    How can a teacher teach about colours to children with visual impairment in an inclusive setting?

    Date posted: November 16, 2018.  

  • With example describe the concepts of nucleated and dispersed settlement patterns in Kenya today(Solved)

    With example describe the concepts of nucleated and dispersed settlement patterns in Kenya today.

    Date posted: November 15, 2018.  Answers (1)

  • The trial balance of Zach Ltd. as at 31 December 1999 was as follows:(Solved)

    The trial balance of Zach Ltd. as at 31 December 1999 was as follows: Fa12008.png Additional information: 1. Stock at 31 December 1999 was Sh.360,000. 2. Sales returns of Sh.20,000 have been entered in the sales day book as if they were sales. When this error was discovered, the debtors account had been corrected but the sales figure was not rectified. 3. 5000 new shares were issued during the year at Sh.32. The proceeds have been credited to the suspense account. 4. A fully depreciated plant which cost Sh.200,000 was sold during the year. No other entries except bank have been made. The remaining balance on the suspense account after (2 and 3) above represents the sale proceeds. 5. A debtor of Sh.20,000 has been declared bankrupt. A general provision is required at 5% of debtors. 6. Rates of Sh.30,000 paid in December covering half year to 31 March 2000 have not been entered in the books. 7. Debenture interest has not been paid. 8. Depreciation on plant is at 10% on cost and buildings at 2% on cost. 9. The directors propose to pay a dividend of Sh.2 per share and transfer Sh.20,000 to the general reserve. 10. Corporation tax at a rate of 32'/2% on profits is estimated to be Sh.90,000. Required: (a)Suspense account for the year ended 3I December 1999 (b)Trading,profit and loss account for the year ended 31 December 1999. (c) Balance sheet as at 31 December 1999.

    Date posted: November 15, 2018.  Answers (1)

  • In reference to program of your choice, describe the cycle of community mobilization(Solved)

    In reference to program of your choice, describe the cycle of community mobilization

    Date posted: November 15, 2018.  Answers (1)

  • Explain the stages of evolution of man and highlight the features at each stage(Solved)

    Explain the stages of evolution of man and highlight the features at each stage

    Date posted: November 15, 2018.  Answers (1)

  • State the important aspects of Darwin theory(Solved)

    State the important aspects of Darwin theory

    Date posted: November 15, 2018.  Answers (1)

  • Define corruption and discuss why it can threaten a state’s sovereignty(Solved)

    Define corruption and discuss why it can threaten a state’s sovereignty.

    Date posted: November 15, 2018.  Answers (1)

  • What are the advantages of methods of dating fossils(Solved)

    What are the advantages of methods of dating fossils

    Date posted: November 15, 2018.  Answers (1)

  • Explain the methods used by scientists to arrive at the age of fossils remains.(Solved)

    Explain the methods used by scientists to arrive at the age of fossils remains.

    Date posted: November 15, 2018.  Answers (1)

  • Explain how archaeologists locate a historical site.(Solved)

    Explain how archaeologists locate a historical site.

    Date posted: November 15, 2018.  Answers (1)


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