- when one has a large amount of money with no immediate use
- Where one has a financial obligation to meet at a future date
- Where one intends to use it as collation/security.
- Where a trader wants to earn interest from the fixed deposit account.
Kavungya answered the question on April 4, 2019 at 05:31
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Highlight four differences between a balance sheet and statement of affairs
(Solved)
Highlight four differences between a balance sheet and statement of affairs
Date posted:
April 4, 2019
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Answers (1)
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The following balances were extracted from the books of Shah Traders on 30th June, 2010
Closing stock was Kshs. 70,000 as at 30th June, 2010. Prepare...
(Solved)
The following balances were extracted from the books of Shah Traders on 30th June, 2010
Closing stock was Kshs. 70,000 as at 30th June, 2010. Prepare the trading account for the period
ended 30th June, 2010
Date posted:
April 4, 2019
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Answers (1)
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The following information was extracted form the books of Bondo Traders as at 31st Dec. 2004
Opening stock 2,500
Purchases ...
(Solved)
The following information was extracted form the books of Bondo Traders as at 31st Dec. 2004
Opening stock 2,500
Purchases 46,000
Closing stock 1,500
Mark up 20%
Prepare a trading account.
Date posted:
April 3, 2019
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Answers (1)
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The following information relates to Kafupi business enterprise:-
Average stock Shs.120,000
Rate of stock turnover 3 times
Margin ...
(Solved)
The following information relates to Kafupi business enterprise:-
Average stock Shs.120,000
Rate of stock turnover 3 times
Margin 25%
From the data above, determine;
(a) The cost of goods
(b) Gross profit
(c) Sales
Date posted:
April 3, 2019
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Answers (1)
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The following balances were extracted from the books of Masai retailers on
14th July 2000
...
(Solved)
The following balances were extracted from the books of Masai retailers on
14th July 2000
Shs.
Opening stock 30 000
Purchases 800 000
Closing stock ?
Sales 1 000 000
Return inwards 20 000
Return outwards 15 000
Maasai retailers sell goods at a mark up of 20%
Prepare the trading account for the period ended 14th July 2000
Date posted:
April 3, 2019
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Answers (1)
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The following information was extracted from the books of Klub traders
...
(Solved)
The following information was extracted from the books of Klub traders
Kshs.
Opening stock 160,000
Closing stock 200,000
Purchases 1,800,000
Margin 20%
Calculate klubs sales
Date posted:
April 3, 2019
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Answers (1)
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From the following information prepare debtors control account for the year
ended 31st Dec 2007
...
(Solved)
From the following information prepare debtors control account for the year
ended 31st Dec 2007
Shs
Debtors balance 1-1-07 11,000
Credit sales ?
Bad debts written off 5,000
Return inwards 1,600
Receipts from debtors 31,000
Dishonoured cheque 2,800
Discount allowed 3,400
Debtors balance 31-12-07 25,300
Date posted:
April 3, 2019
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Answers (1)
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State the journal that deals with each of the following types of transactions
(Solved)
State the journal that deals with each of the following types of transactions
TYPE OF TRANSACTION JOURNAL
i) Credit sales
ii) Return of goods by customers
iii) Return of goods to suppliers
iv) Cash cheques received
v) Credit purchases
vi) Sale of fixed assets on credit
vii) Purchase of a motor van on credit from general motors
viii) Correction of errors
Date posted:
April 3, 2019
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Answers (1)
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On 31st December,2009 details extracted from Khetia’s Ltd. showed commission received for the
year as Kshs. 60,000. Commission received in advance by 1st January,2009 was Kshs.12,000.
Whereas...
(Solved)
On 31st December,2009 details extracted from Khetia’s Ltd. showed commission received for the
year as Kshs. 60,000. Commission received in advance by 1st January,2009 was Kshs.12,000.
Whereas commission received in advance as at 31st December, 2009 was Kshs. 24,000.
Determine the commission income for the year 2009 that is posted to the profit and loss account
Date posted:
April 3, 2019
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Answers (1)
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Give three documents from which information entered in cash receipts and cash payments
Journals may be obtained
(Solved)
Give three documents from which information entered in cash receipts and cash payments
Journals may be obtained
Date posted:
April 3, 2019
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Answers (1)
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Record the following transactions in a double column cash book of JABER traders and balance
it off as at 12th June 2009:-
June 1: Balances : Cash...
(Solved)
Record the following transactions in a double column cash book of JABER traders and balance
it off as at 12th June 2009:-
June 1: Balances : Cash shs.5500
Bank shs.18000 (Cr)
June 3: Purchases shs.4500 was made being paid by cheque shs.4000, balance later
June 7: Sold goods for cash shs.6000
June 12: took shs.7000 to bank
June 13: Credit purchases from Ombogo shs.3000
June 14: paid Alweny shs.1000 cash
Date posted:
April 3, 2019
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Answers (1)
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Ondiko Traders had Kshs. 100000 cash in hand and Kshs.243000 cash at bank during the month
of March 2008. The following transactions took place in that...
(Solved)
Ondiko Traders had Kshs. 100000 cash in hand and Kshs.243000 cash at bank during the month
of March 2008. The following transactions took place in that month:
March 3 – paid rent Kshs.5000 cash
March 11- cash sales Kshs.14000
March 14-purchased equipment worth Kshs. 37000 paying by cheque
March 20- Deposited shs. 30000 into bank from cash till
March 31- Took Kshs. 10000 cash for personal use
Prepare Ondiko traders’ two- column cash book for March 2008
Date posted:
April 3, 2019
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Answers (1)
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The following transactions took place in the business of Kiprono during the first week of Jan.
2003
Jan 1st Balance brought down
...
(Solved)
The following transactions took place in the business of Kiprono during the first week of Jan.
2003
Jan 1st Balance brought down
Cash = Kshs12,000.00
Bank= Kshs.35,000
Jan 2nd Sold an old piece of furniture for Kshs.8,000 cash
Jan 3rd Cash sales Kshs.10,000 paid directly to the bank
Jan 4th Purchased goods worth Kshs.20,000 , paid Kshs.5,000 cash and the balance
to be paid later
Jan 5th Kiprono took cash Kshs.1,500 for personal use
Jan 6th Bought goods worth Kshs.15,000 paying partly by cheque Kshs.10,000 and
the balance in cash
Required: Prepare Kiprono’s two column cash book for the month of January and balance it
Date posted:
April 3, 2019
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Answers (1)
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Identify four uses of the cash book
(Solved)
Identify four uses of the cash book
Date posted:
April 3, 2019
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Answers (1)
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The following cash book relates to Baraka enterprises
State the transactions that took place on the above cashbook on the following dates
Jan 1
Jan 10
Jan 15
Jan 20
(Solved)
The following cash book relates to Baraka enterprises
State the transactions that took place on the above cashbook on the following dates
Jan 1
Jan 10
Jan 15
Jan 20
Date posted:
April 3, 2019
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Answers (1)
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The following transaction took place in the business of Highlands Retail in the month
of June 2008
1.6.2008-commenced business with Kshs. 120,000 in cash
4.6.2008-transferred kshs66, 000 from...
(Solved)
The following transaction took place in the business of Highlands Retail in the month
of June 2008
1.6.2008-commenced business with Kshs. 120,000 in cash
4.6.2008-transferred kshs66, 000 from business till to the bank
13.6.2008-brought his private furniture worth kshs. 15,000 into the business for business use
28.6.2008-borrowed a loan in cash kshs.40, 000
Required: Post the transactions into the relevant ledger account
Date posted:
April 3, 2019
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Answers (1)
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Record the following transactions in the relevant ledger accounts for the month of June, 2009
June 1: invested shs.100,000 cash in a retail business
June 2: Obtained...
(Solved)
Record the following transactions in the relevant ledger accounts for the month of June, 2009
June 1: invested shs.100,000 cash in a retail business
June 2: Obtained a co-operative loan of Shs.20,000 cash
June 3: bought furniture Shs. 70,000, paying Shs.40,000 cheque and the balance in cash
Date posted:
April 3, 2019
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Answers (1)
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Given below is a list of subsidiary ledgers:
-General ledger
-Nominal ledger
-Purchases ledger
-Sales ledger
-Cash book
Indicate in which ledger the following accounts should be recorded
(Solved)
Given below is a list of subsidiary ledgers:
-General ledger
-Nominal ledger
-Purchases ledger
-Sales ledger
-Cash book
Indicate in which ledger the following accounts should be recorded
Date posted:
April 3, 2019
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Answers (1)
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The following trial balance was prepared by an incompetent book keeper thus failed to
balance. Balance it.
(Solved)
The following trial balance was prepared by an incompetent book keeper thus failed to
balance. Balance it.
Date posted:
April 3, 2019
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Answers (1)
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The following balances were extracted from the books of Nyatike Traders Limited as at
31st January 2010 Kshs.
Discount...
(Solved)
The following balances were extracted from the books of Nyatike Traders Limited as at
31st January 2010 Kshs.
Discount allowed 5,000
Buildings 250,000
Return outwards 6,000
Purchases 74,000
Creditors 20,000
Drawings 16,000
Capital 319,000
Required: Prepare Nyatike Traders Ltd trial balance as at that date
Date posted:
April 3, 2019
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Answers (1)