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i)Safekeeping of valuable items commercial banks act as custodian of valuable items for their clients e.g wills, title, deeds & jewelery.
ii)They lend money to their clients in form of loans, overdrafts of discounting bills of exchange ad promising notes.
iii)They receive money deposits from their clients commercial banks operate three types of accounts for this purpose- savings, current and fixed deposit accounts.
iv)Facilitate international payments through letters of credit.
v)They advice their clients on financial and investment matters.
vi)They act as management trustees of properties of business of decreased clients.
vii)They act as referees for their clients during a credit status inquiry
Kavungya answered the question on September 26, 2019 at 07:31
- On 1st January 2012 Manga traders had 180,000 cash in hand and a bank credit balance of Shs.57,500. During the month the following transactions...(Solved)
On 1st January 2012 Manga traders had 180,000 cash in hand and a bank credit balance of Shs.57,500. During the month the following transactions took place.
3rd Jan:Cash sales Shs. 2,800
4th Jan:A debtor settled his accent of sh. 90,00 by cheque
10th Jan:Paid Salaries shs. 40,000 in cash.
12th Jan:Took cash sh. 35,000 to settle on personal debt.
23rd Jan:Received a cheque shs. 8460 from Ouru distribution after deducting 6% cash discount.
24th Jan: Deposits shs. 10000 in the bank from office cash.
25th Jan: Purchased stock worth shs.8950 on credit from Ngumo distributors
26th Jan: Cash sales banked directly shs.38000
27th Jan: A cheque received on 4th from a debtors was dishonored. The bank charged him 2500.
29th Jan: Settled creditors account shs. 6000 b cheque less 3% cash discount.
31st Jan: Bank all cash except shs.40,000
Required:Prepared a three column cash book duly balanced
Date posted: September 26, 2019. Answers (1)
- Open the relevant ledger accounts using the following information.
1/2/2011 Started business with Kshs 10,000 in cash and Ksh 50,000 at bank.
2/2/2011 Bough goods on credit...(Solved)
Open the relevant ledger accounts using the following information.
1/2/2011 Started business with Kshs 10,000 in cash and Ksh 50,000 at bank.
2/2/2011 Bough goods on credit from Lk traders worth Kshs 5,000.
4/2/2011 Withdrew from the bank Kshs 2000 for office use.
Date posted: September 26, 2019. Answers (1)
- Outline four challenges being faced by Kenya in the crucial stage of implementing the vision 2030. (Solved)
Outline four challenges being faced by Kenya in the crucial stage of implementing the vision 2030.
Date posted: September 26, 2019. Answers (1)
- The following information was extracted from the books of Nancy traders for the months ended 31.6.2009.
Sh
Closing Stock 10,000
Purchases 120,000
Opening stock 15,000
The average mark up for the goods...(Solved)
The following information was extracted from the books of Nancy traders for the months ended 31.6.2009.
Sh
Closing Stock 10,000
Purchases 120,000
Opening stock 15,000
The average mark up for the goods sold was 40%
Calculate.
i)Cost of sales.
ii)Gross profit
iii)Sales
Date posted: September 26, 2019. Answers (1)
- Vijana LTD transacted the following during the month of march 2005
March 1: Sold an old machine on credit for Ksh.1000 to KK traders.
March 2: Sold...(Solved)
Vijana LTD transacted the following during the month of march 2005
March 1: Sold an old machine on credit for Ksh.1000 to KK traders.
March 2: Sold an old business car worth 100,000/= for shs. 120,000/- on credit to Dobi motors.
March 3: Bought office furniture on credit from smart furniture worth Kshs. 10,000/=
March 4: Sold an old computer valued at Kshs 20,000/= for Kshs 15,000/= on credit to John traders.
Requirement:
Make the entries in the journal paper.
Date posted: September 26, 2019. Answers (1)
- Hekima traders had the following information in its records as at 1.12.2009
Shs.
Cash at bank 5,000
Trade debtors 20,000
Stock ...(Solved)
Hekima traders had the following information in its records as at 1.12.2009
Shs.
Cash at bank 5,000
Trade debtors 20,000
Stock 25,000
Capital 120,000
Machinery 80,000
Creditors 10,000
On 2nd Dec. he had the following transactions:
-Bought goods for Ksh 15,000 on credit
-Sold the machine for Kshs. 90,000 received the money in cash.
-Received a cheque for shs 10,000 from a debtor.
Prepare Hekima’s balance sheet after the above transactions
Date posted: September 26, 2019. Answers (1)
- The following information belongs to XYZ traders for as at 31.12.2010
...(Solved)
The following information belongs to XYZ traders for as at 31.12.2010
Shs
Rent 5,000
Debtors 20,000
Drawings 10,000
Stock 80,000
Cash in hand 15,000
Creditors 25,000
Cash at bank 50,000
Calculate capital and prepare the trial balances of XYZ traders as at 31.12.2010
Date posted: September 26, 2019. Answers (1)
- Highlight four circumstances under which a business person may decide to build his own warehouse instead of using a public warehouse.(Solved)
Highlight four circumstances under which a business person may decide to build his own warehouse instead of using a public warehouse.
Date posted: September 26, 2019. Answers (1)
- The table below represents the demand schedule for tea leaves for 6 months in 2010.
Outline four causes of the trend in the table.(Solved)
The table below represents the demand schedule for tea leaves for 6 months in 2010.
Outline four causes of the trend in the table.
Date posted: September 26, 2019. Answers (1)
- State circumstances under which the following services may be offered by the post officer in enhancing communication.
i)Poste restante
ii)Registered mail
iii)Speed post
iv)Business reply services(Solved)
State circumstances under which the following services may be offered by the post officer in enhancing communication.
i)Poste restante
ii)Registered mail
iii)Speed post
iv)Business reply services
Date posted: September 26, 2019. Answers (1)
- Highlight four reasons why Kenya needs to encourage the use of pipeline transport(Solved)
Highlight four reasons why Kenya needs to encourage the use of pipeline transport
Date posted: September 26, 2019. Answers (1)
- The following trial balance was extracted from the books of Baite Traders on 31st August. 2009.
Additional information;
Stock on 31st August. 2009 was valued at sh...(Solved)
The following trial balance was extracted from the books of Baite Traders on 31st August. 2009.
Additional information;
Stock on 31st August. 2009 was valued at sh 50,000. Required; Prepare Trading profit and loss account for the year ended 31st August. 2009.
Date posted: September 26, 2019. Answers (1)
- Prepare a three column cash book from the following information for the month of May 2004 and balance it off.May 1 Balances b/d cash sh...(Solved)
Prepare a three column cash book from the following information for the month of May 2004 and balance it off.
May 1 Balances b/d cash sh 50,000, Bank sh 180,000
May 1 Cash sales sh 3,000
May 2 Paid the following creditors by cheque, N Mwangi sh 1,500, J .Mwaniki sh 16,000, N Mugo sh 1,200 after deducting 10% cash discount in each case.
May 3 Received cheques from the following debtors after deducting 5% discount in each case E. Githinji sh 24,000, D.Nyamu sh 9,000, E. Mutua sh 1,400.
May 5 Paid for repairs in cash sh 16,000
May 10 Paid Juma in cash sh9,500
May 15 Banked sh 6,000 from the cash till
May 15 Received cash from P. Kavuniki sh 13,500 in full settlement of his account of sh 15,000.
Date posted: September 26, 2019. Answers (1)
- Highlight four benefits of having business enterprises located in one area.(Solved)
Highlight four benefits of having business enterprises located in one area.
Date posted: September 26, 2019. Answers (1)
- On 1st January 2009, Sembe stores had capital sh 600,000. At the end of the year, the following balances were available:
...(Solved)
On 1st January 2009, Sembe stores had capital sh 600,000. At the end of the year, the following balances were available:
Sh
Stock 70,000
Creditors 50,000
Debtors 30,000
Bank overdraft 80,000
Buildings 800,000
Determine the net profit for the year.
Date posted: September 26, 2019. Answers (1)
- The following balances were extracted from the books of Sila Traders on 31st December.2001.
...(Solved)
The following balances were extracted from the books of Sila Traders on 31st December.2001.
Sh
Gross profit 400,000
Salaries 160,000
Telephone 40,000
Discount received 16,000
Discount allowed 30,000
Stationery 85,000
Prepare a profit and loss account for the period ended 31st December. 2001.
Date posted: September 26, 2019. Answers (1)
- Give four reasons why supermarkets attract many customers.(Solved)
Give four reasons why supermarkets attract many customers.
Date posted: September 26, 2019. Answers (1)
- On 1st May. 2010, the cash book of Amua Traders had cash and bank balances of sh 3,500 and 18,000 respectively.
During the month the following...(Solved)
On 1st May. 2010, the cash book of Amua Traders had cash and bank balances of sh 3,500 and 18,000 respectively.
During the month the following transactions took place;
May 2 cash sales sh 12,500
6 paid sh 13,000 in cash for wages.
14 A debtor paid sh 20,000 by cheque.
20 Withdrew sh 30,000 from the bank for office use.
30 Drew a cheque for sh 10,000 to pay a creditor.
Prepare a two – column cash book duly balanced.
Date posted: September 26, 2019. Answers (1)
- Indicate the quality of office workers that best fits each of the given descriptions.
a)Ability to observe working hours without delay
b) Handling people politely and pleasantly
c)...(Solved)
Indicate the quality of office workers that best fits each of the given descriptions.
a)Ability to observe working hours without delay
b) Handling people politely and pleasantly
c) Commitment to ones institution
Date posted: September 26, 2019. Answers (1)
- The following information relates to ABC traders for the year ended 31 December. 2011.
Opening stock 80,000
Closing...(Solved)
The following information relates to ABC traders for the year ended 31 December. 2011.
Opening stock 80,000
Closing stock 100,000
Purchases 900,000
Mark- up 20%
Calculate:
i) Cost of goods sold.
ii) Gross profit.
Date posted: September 26, 2019. Answers (1)