i) To provide goods and services-Businesses exist to satisfy the needs and wants of buyers by providing
them with goods and services. Buyers include individual consumers, other businesses and the government.
ii) To create employment-Businesses provide job opportunities through which members of society can earn money, which can be used to buy goods and services for the satisfaction of their needs.
iii) To earn profit-Profit is the primary goal of carrying out business operations. It is earned by the people who put their resources and effort in business
iv) As an outlet of new innovation-Some businesses provide unique goods and services which may not be existing in society e.g. plastic fencing poles that are now replacing wooden poles.
v) To be as own boss-Some people run businesses so as to be in full control of the operations and make all the decisions regarding the business without need of reference to people.
vi) To utilize extra resources-Some people go into business to make use of money or property which is not being put to profitably use at a given time.
vii) To offer special services-Some businesses provide services that raise the living standard of people e.g. government enterprises that provide public utilities such as health care and water.
viii) To utilize spare time-Some people run businesses in order to make use of extra time at their disposal and in the process make some extra money. A large number of formally employed people have small business which they run during their free time in order to earn more
money.
sharon kalunda answered the question on March 29, 2019 at 07:10
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February 28, 2019
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February 28, 2019
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(Solved)
The following trial balance was extracted from the books of Nyaituya on
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Additional information. Sh.
(i) Stock as at 31st December 2005 52,000
(ii) Rent accrued 6,000
(iii) Insurance paid in advance 4,000
(iv) Commission due 5,000
(v) Salaries owing 21,000
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Prepare a trading, profit and loss account for the year ended 31st December
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Date posted:
February 25, 2019
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The following trial balance was extracted from the ledgers of Gathioro’s mobile phones business for the year ended 31st Oct 2013.
Gathioro’s mobile phones
Trial Balance
As at Gathiro’s 31st Oct 2013
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Date posted:
February 25, 2019
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On 1st November 2013:Tabagon Co. Ltd. had a balance of shs. 12,000 at the bank and shs. 2500 in hand. During the month, the following...
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On 1st November 2013:Tabagon Co. Ltd. had a balance of shs. 12,000 at the bank and shs. 2500 in hand. During the month, the following transaction took place;
Nov. 1 Cash sales Shs. 2500, cash purchase Shs. 1750
Nov. 3 Paid the following accounts by cheque.
Kirop Shs. 1500 less 5% cash discount
Kirui Shs. 2000 less 5% cash discount
Nasimiyu shs. 2100 less 3 % cash discount
Nov. 5 Received the following amounts from debtors,
Ondiek shs. 1200,
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Jane shs. 3850 and Mueni by cheque shs. 2050 after allowing
her shs. 300 cash discount.
Nov. 14 Paid office cash to the bank shs. 2000
Nov. 17 Cash sales 8500
Nov. 22 Mueni paid her account of shs. 5000 by cheque less 10% cash discount
Nov. 28 Withdrew all the money from the bank for office use except shs. 1000
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Date posted:
February 23, 2019
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(Solved)
The following were the balances of Kiboko Traders as at 1st January 2009. Cash Sh.40, 000, bank overdraft Sh.17, 000. During the month the following transactions took place.
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4th : Paid salaries amounting to Sh.16,000 by cash.
10th: Deposited Sh.12, 000 into the business bank account from the cash till.
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16th: Deposited Sh.56, 000 in the bank from private resources.
17th: Sold goods for cash Sh.24,000.
20th: Mutua, a debtor, settled his account by a cheque of Sh.16, 000 having been allowed a discount of 2%.
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57
Required: Prepare a three column cash for Kubuka Traders.
Date posted:
February 23, 2019
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Define a trial balance.
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