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
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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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
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Answers (1)
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Give four reasons why supermarkets attract many customers.
(Solved)
Give four reasons why supermarkets attract many customers.
Date posted:
September 26, 2019
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Answers (1)
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Give four challenges that may face a business unit that does not file its documents.
(Solved)
Give four challenges that may face a business unit that does not file its documents.
Date posted:
September 26, 2019
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Answers (1)
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In the spaces provided, indicate the accounts to be debited and credited for each of the given transactions.
(Solved)
In the spaces provided, indicate the accounts to be debited and credited for each of the given transactions.
Date posted:
September 26, 2019
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Answers (1)
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Highlight four reasons why interest is charged on borrowed capital.
(Solved)
Highlight four reasons why interest is charged on borrowed capital.
Date posted:
September 26, 2019
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Answers (1)
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Kamwaru private company recently joined the Nairobi stock Exchange. Describe five benefits of such a decision
(Solved)
Kamwaru private company recently joined the Nairobi stock Exchange. Describe five benefits of such a decision
Date posted:
September 26, 2019
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Answers (1)
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The following trial balance belongs to Kipevu trades as at 30th June, 2004.
REQUIRED
(i)Prepare a trading profit and loss account
(ii)Prepare a balance sheet as at 30th...
(Solved)
The following trial balance belongs to Kipevu trades as at 30th June, 2004.
REQUIRED
(i)Prepare a trading profit and loss account
(ii)Prepare a balance sheet as at 30th June 2004
Date posted:
September 26, 2019
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Answers (1)
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Karemi owns a bakery in Kitale town. Explain five ways why he carried out division of labour
in the process of baking bread in his factory.
(Solved)
Karemi owns a bakery in Kitale town. Explain five ways why he carried out division of labour
in the process of baking bread in his factory.
Date posted:
September 26, 2019
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Answers (1)
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Tango limited wishes to promotes its products through advertising. Mention any four ethical issues it must consider before engaging in advertising.
(Solved)
Tango limited wishes to promotes its products through advertising. Mention any four ethical issues it must consider before engaging in advertising.
Date posted:
September 25, 2019
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Answers (1)
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Highlight four reasons why a development plan is important to a country.
(Solved)
Highlight four reasons why a development plan is important to a country.
Date posted:
September 25, 2019
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Answers (1)
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Identify four differences between a supermarket and hypermarket.
(Solved)
Identify four differences between a supermarket and hypermarket.
Date posted:
September 25, 2019
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Answers (1)