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Joseph Ndumbu, a sales representative, earns a basic monthly salary of 75,000 plus a commission of 5% on sales in excess of sh 200,000. During...
(Solved)
Joseph Ndumbu, a sales representative, earns a basic monthly salary of 75,000 plus a commission of 5% on sales in excess of sh 200,000. During the month of march 2014, he sold goods worth sh 480,800. He was also reliable to statutory deductions of 320 NHIF, 400 NSSF, 19,700 loan repayments and 7,500 for mid month salary advance.
Ignore taxes.
Required.
Net pay for Joseph Ndumbu for the month of March 2014.
Date posted:
May 26, 2021
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Answers (1)
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Scholastica Mbula intends to purchase a posho mill costing Ksh 344,960 in the year 2012.
(Solved)
Date posted:
May 26, 2021
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Answers (1)
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Faulu University College employed an accounting lecturer on 1 Jan 2008. The annual salary of the lecturer in the year 2008 was Ksh 1,400,000.
(Solved)
Required.
The percentage increase in the lecturer's net monthly salary for the year 2009.
Date posted:
May 26, 2021
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Answers (1)
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Mary Ngugi owns a piece of land currently valued at sh 200,000. She intends to dispose the piece of land and and use the proceeds...
(Solved)
Mary Ngugi owns a piece of land currently valued at sh 200,000. She intends to dispose the piece of land and and use the proceeds to purchase a pick up currently valued at 1 million. The value of the piece of land appreciates at a fixed rate of 50,000 per annum while the value of the pick up depreciates at the rate of 20 per cent per annum, on a straight line basis.
Required.
The number of years it would take for the value of the piece of land to be equal to the value of the pickup.
Date posted:
May 26, 2021
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Answers (1)
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Mary Mutiso bought a posho mill on hire purchase terms. The cash price of the posho mill is Sh. 1,200,000. The hire purchase terms comprise...
(Solved)
Mary Mutiso bought a posho mill on hire purchase terms. The cash price of the posho mill is Sh. 1,200,000. The hire purchase terms comprise a deposit of 25% of the cash price and 12 equal monthly installments of the balance and interest payable. Simple interest is charged on the principal balance at the rate of 12.5 percent per annum.
Required.
i) The amount of each monthly installment.
ii) The amount of savings (if any) that Mary Mutiso would have made if she had paid a deposit of 45% of the cash price and was charged simple interest of 10% per annum.
Date posted:
May 25, 2021
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Answers (1)
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Mr Yusuf Said purchased a grinding machine at a cost of Sh 513,000. The estimated useful life of the machine is 10 years with an...
(Solved)
Mr Yusuf Said purchased a grinding machine at a cost of Sh 513,000. The estimated useful life of the machine is 10 years with an estimated residual value of sh 10,000.
Required.
i) The annual rate of depreciation using the reducing balance method.
ii) The net book value of the machine at the end of the 4th year.
Date posted:
May 25, 2021
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Answers (1)
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The following distribution gives the profits realized by 1,000 companies for the year ended 31 December 2010.
(Solved)
The following distribution gives the profits realized by 1,000 companies for the year ended 31 December 2010.
Date posted:
May 25, 2021
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Answers (1)
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Uvumilivu Hospital keeps a record of the weights of patients x visiting the hospital on a daily basis. Records from the hospital indicate that thirty...
(Solved)
Uvumilivu Hospital keeps a record of the weights of patients x visiting the hospital on a daily basis. Records from the hospital indicate that thirty patients visited the hospital on 1 April 2021.
Date posted:
May 25, 2021
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Answers (1)
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Highlight 3 advantages of the median as a measure of central tendency.
(Solved)
Highlight 3 advantages of the median as a measure of central tendency.
Date posted:
May 25, 2021
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Answers (1)
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Bundacho Oil Ltd imported 30,000 containers of cooking oil. Each container was imported at a cost of Us Dollars 3.8 and contained 6.5 litres of...
(Solved)
Bundacho Oil Ltd imported 30,000 containers of cooking oil. Each container was imported at a cost of Us Dollars 3.8 and contained 6.5 litres of cooking oil. Fifteen per cent of the cooking oil was lost during transportation and delivery. The company sold the remaining cooking oil at Ksh. 80 per litre.
Required.
The percentage profit made from the sale of cooking oil (assume no extra costs were incurred)
1 Us Dollar = Ksh 92
Date posted:
May 25, 2021
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Answers (1)
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The cash price of an article is sh. 9,000. If it is bought on hire purchase terms, a deposit is paid and then a flat...
(Solved)
The cash price of an article is sh. 9,000. If it is bought on hire purchase terms, a deposit is paid and then a flat rate of 15% per annum is charged on the balance.
Required.
Determine the amount of deposit if the hire purchase agreement runs for 2 years and the monthly installment is sh 390.
Date posted:
May 21, 2021
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Answers (1)
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Abdul Mwarome deposited Sh. 80,000 in a fixed deposit account. After four years, the amount of money in the account was sh. 97,240.50.
Required.
Determine the compound...
(Solved)
Abdul Mwarome deposited Sh. 80,000 in a fixed deposit account. After four years, the amount of money in the account was sh. 97,240.50.
Required.
Determine the compound rate of interest per annum.
Date posted:
May 21, 2021
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Answers (1)
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A hawker sells exercise books and pencils in an urban centre. Each exercise book sells at sh 20 and a pencil sells at sh 15....
(Solved)
A hawker sells exercise books and pencils in an urban centre. Each exercise book sells at sh 20 and a pencil sells at sh 15. During the month of October 2011, the hawker's total sales were sh 3,450. Customers bought 5 times as many books as pencils.
Required.
The number of exercise books and pencils sold by the hawker in the month of October 2011.
Date posted:
May 21, 2021
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Answers (1)
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Julius Mtile purchased a car at the beginning of the year 2012 at Sh. 200,000. He decided to use it in his business operations. All...
(Solved)
Julius Mtile purchased a car at the beginning of the year 2012 at Sh. 200,000. He decided to use it in his business operations. All motor vehicles for his business are depreciated at the rate of 20% using the reducing balance method.
Required.
Determine the number of years after which the value of the car will reduce to sh. 65,536.
Date posted:
May 21, 2021
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Answers (1)
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An agricultural irrigation scheme is being developed through 3 different possible systems; A, B & C. The useful life of the scheme is 20years with...
(Solved)
An agricultural irrigation scheme is being developed through 3 different possible systems; A, B & C. The useful life of the scheme is 20years with the following installation and annual running costs per system.
Date posted:
May 21, 2021
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Answers (1)
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A construction company purchased equipment at a total cost of Sh. 675,000. The equipment is expected to have a useful life of 10 years and...
(Solved)
A construction company purchased equipment at a total cost of Sh. 675,000. The equipment is expected to have a useful life of 10 years and a resale value of Sh. 187,988. The company's policy is to charge depreciation using the reducing balance method.
Required.
The annual depreciation rate of the equipment.
Date posted:
May 21, 2021
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Answers (1)
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A business man based in Kenya imported a consignment of 25,000 computer memory cards from his supplier based in London at a cost of 2.25...
(Solved)
A business man based in Kenya imported a consignment of 25,000 computer memory cards from his supplier based in London at a cost of 2.25 Sterling Pounds per card. Other expenses incurred on the consignment included 1,598,500 Ksh on freight charges, 1 percent insurance charge on the cost of the cards and 50 Ksh per memory card on customs duty.
1 Sterling pound = 136 Ksh.
Required.
The selling price per memory card in Ksh if the businessman intends to make a profit of 15% on total cost.
Date posted:
May 21, 2021
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Answers (1)
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Mary Munga borrowed a certain amount of money for 2 years. The rate of simple interest for the first year was 9.75%. During the second...
(Solved)
Mary Munga borrowed a certain amount of money for 2 years. The rate of simple interest for the first year was 9.75%. During the second year, the rate increase to 11%. At the end of the period, Mary realized that she earned sh 937.50 more in the second year than in the first year.
Required.
The amount of money Mary Munga had borrowed.
The rate of compound interest that would have earned Mary Munga the same total interest during the two years.
Date posted:
May 21, 2021
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Answers (1)
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A Kenyan Business man imported 50,000 electronic calculators from Japan at a cost of 2,500 Japanese yen per calculator. The total additional expenses incurred were...
(Solved)
A Kenyan Business man imported 50,000 electronic calculators from Japan at a cost of 2,500 Japanese yen per calculator. The total additional expenses incurred were Ksh 30,000 freight, Ksh 60,000 insurance on the consignment and Ksh 100 per calculator on customs duty. the exchange rate was 100 Japanese yen Ksh. 96.80
Required.
i) The total cost of the consignment in Kenya shillings.
ii) The selling price per calculator if the business man was to make a profit of 20% on the total cost.
Date posted:
May 21, 2021
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Answers (1)
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Jackson Charo bought a HP computer model on hire purchase for sh 27,400. A customer who pays cash is given 15% discount on the hire...
(Solved)
Jackson Charo bought a HP computer model on hire purchase for sh 27,400. A customer who pays cash is given 15% discount on the hire purchase price. He paid Sh 5,650 as down payment and paid the balance in 15 equal monthly installments.
Required.
i) The amount of money he paid for the computer per month.
ii) The amount of money that could have been saved if he had bought the computer on cash basis.
Date posted:
May 20, 2021
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Answers (1)