The Difference Between the Ledger Entries of cash transaction and credit transaction is,:- When the cash transaction is made the entries are made in the cash account and the individual creditor or debtor, whereas in the credit transaction entries are made to the individual creditor or debtor account and the Creditor or debtor account. For example, Mr XYZ bought goods in cash for Ksh 200/= you will prepare two ledger account for Cash Account and Mr XYZ Account on the other hand if Mr XYZ bought goods for Credit worth Ksh 200/-, since this is credit transaction you will prepare Creditor or Purchase account and Mr XYZ Ledger account.
hebrews2013 answered the question on June 7, 2018 at 15:02
-
Auditors carry out various audit assignments. In relation to the above statement, explain four non-assurance assignments that auditors undertake
(Solved)
Auditors carry out various audit assignments. In relation to the above statement, explain four non-assurance assignments that auditors undertake.
Date posted:
May 22, 2018
.
Answers (1)
-
Discuss the problems of Cross Sectional Analysis in accounting.
(Solved)
Discuss the problems of Cross Sectional Analysis in accounting.
Date posted:
May 22, 2018
.
Answers (1)
-
Outline the limitations of financial ratios.
(Solved)
Outline the limitations of financial ratios.
Date posted:
May 22, 2018
.
Answers (1)
-
Discuss the uses of financial ratios.
(Solved)
Discuss the uses of financial ratios.
Date posted:
May 22, 2018
.
Answers (1)
-
Outline the agency costs incurred by shareholders in trying to control management behavior and actions.
(Solved)
Outline the agency costs incurred by shareholders in trying to control management behavior and actions.
Date posted:
May 22, 2018
.
Answers (1)
-
Outline the actions that a shareholder may take which may conflict the interest of the government as the principal.
(Solved)
Outline the actions that a shareholder may take which may conflict the interest of the government as the principal.
Date posted:
May 22, 2018
.
Answers (1)
-
Examples of actions by shareholders through management that could lead to a conflict between them and creditors
(Solved)
Examples of actions by shareholders through management that could lead to a conflict between them and creditors
Date posted:
May 22, 2018
.
Answers (1)
-
Give examples of decisions by managers which would result in a conflict with shareholders.
(Solved)
Give examples of decisions by managers which would result in a conflict with shareholders.
Date posted:
May 22, 2018
.
Answers (1)
-
State five the disadvantage of management accounting
(Solved)
State five the disadvantage of management accounting.
Date posted:
April 24, 2018
.
Answers (1)
-
Clearly, give the differences between management accounting and financial accounting
(Solved)
Clearly, give the differences between management accounting and financial accounting.
Date posted:
April 24, 2018
.
Answers (1)
-
Describe the functions of a management accountant
(Solved)
Describe the functions of a management accountant.
Date posted:
April 24, 2018
.
Answers (1)
-
Explain the various types of management accounting
(Solved)
Explain the various types of management accounting
Date posted:
April 24, 2018
.
Answers (1)
-
State three limitations of auditing
(Solved)
State three limitations of auditing.
Date posted:
April 14, 2018
.
Answers (1)
-
Outline four contents of a letter of representation
(Solved)
Outline four contents of a letter of representation.
Date posted:
April 14, 2018
.
Answers (1)
-
a) Explain the following terms as used in auditing: (i) Audit risk. (ii) Inherent risk. (iii) Control risk. (iv) Detection risk.
(Solved)
(a) Explain the following terms as used in auditing:(i) Audit risk. (ii) Inherent risk. (iii) Control risk. iv) Detection risk.
Date posted:
April 14, 2018
.
Answers (1)
-
(a) Define the term recurring audit (b) State the circumstance under which the auditor may send a new engagement letter to the existing ...
(Solved)
(a) Define the term recurring audit (b) State the circumstance under which the auditor may send a new engagement letter to the existing ...
Date posted:
April 14, 2018
.
Answers (1)
-
Explain the procedures an auditor should follow before and after accepting nomination.
(Solved)
Explain the procedures an auditor should follow before and after accepting nomination.
Date posted:
April 10, 2018
.
Answers (1)
-
(a) Internal controls over non-current assets are designed to ensure the
orderly and efficient running of the business, adherence to management
policies, safeguarding of assets,...
(Solved)
(a) Internal controls over non-current assets are designed to ensure the
orderly and efficient running of the business, adherence to management
policies, safeguarding of assets, the prevention of fraud and error and
the completeness and accuracy of the accounting records.
Required:
List the internal controls that a small printing company with office
equipment, motor vehicles and plant and machinery should have in place
to achieve the objectives described above.
(b) Audit sampling is a technique for drawing conclusions about the
characteristics of a population by testing a sample drawn there from.
Internal and external auditors use it for both tests of controls, and
substantive testing.
Required:
Describe the following:
(i) Judgement sampling and statistical sampling;
(ii) A representative sample;
(iii) Tolerable error;
(iv) Two different methods of selecting a representative sample;
(v)The extrapolation of errors.
Date posted:
April 3, 2018
.
Answers (1)
-
Your firm is the newly appointed external auditor to a large company that
sells, maintains and leases office equipment and furniture to its customers
and...
(Solved)
Your firm is the newly appointed external auditor to a large company that
sells, maintains and leases office equipment and furniture to its customers
and you have been asked to co-operate with internal audit to keep total
audit costs down. The company wants the external auditors to rely on
some of the work already performed by internal audit.
The internal auditors provide the following services to the company:
(i) A cyclical audit of the operation of internal controls in the company’s
major functions (operations, finance, customer support and
information services);
(ii) A review of the structure of internal controls in each major function
every four years;
(iii) An annual review of the effectiveness of measures put in place by
management to minimise the major risks facing the company.
During the current year, the company has gone through a major internal
restructuring in its information services function and the internal auditors
have been closely involved in the preparation of plans for restructuring,
and in the related post-implementation review.
Required:
a) Explain the extent to which your firm will seek to rely on the work of
the internal auditors in each of the areas noted above.
b) Describe the information your firm will seek from the internal auditors
in order for you to determine the extent of your reliance.
c) Describe the circumstances in which it would not be possible to rely on
the work of the internal auditors.
d) Explain why it will be necessary for your firm to perform its own work
in certain audit areas in addition to relying on the work performed by
internal audit.
Date posted:
April 3, 2018
.
Answers (1)
-
Why would a company not share all its profits to shareholders?
(Solved)
Why would a company not share all its profits to shareholders?
Date posted:
March 30, 2018
.
Answers (1)