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A business firm started trading on 1st January in year 2013. On 1st April, it bought a new motor vehicle costing Ksh 400,000 and later...
(Solved)
A business firm started trading on 1st January in year 2013. On 1st April, it bought a new motor vehicle costing Ksh 400,000 and later on 1st July it bought another motor vehicle costing Ksh 550,000. The financial year for the business ends on 31st December and it has a policy of depreciating motor vehicles at 20% p.a. using straight line basis.
Required:
i. Motor vehicle account as at 31st December 2013
ii. Provision for depreciation account as at 31st December 2013
iii. Income statement extract for year ending 31st December 2013
iv. Cash/ bank account extract
Date posted:
August 17, 2021
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Answers (1)
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A company purchased a machine at a cost of Sh. 450,000. The estimated life of this machine is 5 years. Using the sum of years...
(Solved)
A company purchased a machine at a cost of Sh. 450,000. The estimated life of this machine is 5 years. Using the sum of years digits determine its depreciation.
Date posted:
August 17, 2021
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Answers (1)
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Calculate the reducing balance depreciation charged at 20% for the first 3 years on a machine bought for Sh. 10,000.
(Solved)
Calculate the reducing balance depreciation charged at 20% for the first 3 years on a machine bought for Sh. 10,000.
Date posted:
August 17, 2021
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Answers (1)
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Define the Reducing Balance Method of calculating depreciation.
(Solved)
Define the Reducing Balance Method of calculating depreciation.
Date posted:
August 17, 2021
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Answers (1)
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Describe the Straight Line Method of calculating depreciation.
(Solved)
Describe the Straight Line Method of calculating depreciation.
Date posted:
August 17, 2021
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Answers (1)
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A Machine was bought for Sh. 220,000 and it was estimated to be in operation for 4 years with a residue value of Sh. 20,000....
(Solved)
A Machine was bought for Sh. 220,000 and it was estimated to be in operation for 4 years with a residue value of Sh. 20,000. Calculate the depreciation expense for each year.
Date posted:
August 17, 2021
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Answers (1)
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A business firm that had previously written of bad debts amounting to Ksh 34,000 now recovers the same amount that was paid by cheque. In...
(Solved)
A business firm that had previously written of bad debts amounting to Ksh 34,000 now recovers the same amount that was paid by cheque. In the same financial year the debtor account amount to Ksh 270,000 and out of this the firm will write off bad debts amounting Ksh 20,000.
Required:
i. Debtors Account
ii. Bad debts (written off) Account
iii. Bad debts recovered Account
iv. Bank Account
Date posted:
August 17, 2021
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Answers (1)
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XYZ Ltd started trading on 1 January 2013. The following are some of the bad debts that were written off during two years that XYZ...
(Solved)
XYZ Ltd started trading on 1 January 2013. The following are some of the bad debts that were written off during two years that XYZ Ltd has been trading.
On 31 December 20x3 debtors balance was Ksh 4,050,000. Provision for bad debts was maintained at 3%.
On 31 December 20x4 debtors balance increased to Ksh 4,730,000. Provision for bad debts was maintained at 5%.
Required:
i. Debtors Account for the two years
ii. Bad debts Account for the two years
iii. Provision for bad debts Accounts for the two years
iv. Income statement Extract for the two years
v. Balance sheet Extract for the two years
Date posted:
August 17, 2021
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Answers (1)
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The debtors account for ABC Ltd was Ksh 500,000 by end of the year 2013. Bad debts amounting to Ksh 50,000 were written off from...
(Solved)
The debtors account for ABC Ltd was Ksh 500,000 by end of the year 2013. Bad debts amounting to Ksh 50,000 were written off from this balance. The specific provision stood at Ksh 10,000 while the general provision was maintained at 5% on the debtors balance.
Required:
i. Debtors Account
ii. Bad debts Account
iii. Provision for bad debts Accounts
iv. Income statement Extract
v. Balance sheet Extract
Date posted:
August 17, 2021
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Answers (1)
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Define Accrued Expenses.
(Solved)
Define Accrued Expenses.
Date posted:
August 17, 2021
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Answers (1)
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The following transactions relate to Jaime Ltd for the month of December 2013. Prepare sales ledger and purchases ledger control account for that month.
(Solved)
The following transactions relate to Jaime Ltd for the month of December 2013. Prepare sales ledger and purchases ledger control account for that month.
Date posted:
August 17, 2021
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Answers (1)
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The following information relates to Zeta Ltd for the month of June, 2013.
Balances as at 1st June,2013
Sales Ledger Sh. 642,000...
(Solved)
The following information relates to Zeta Ltd for the month of June, 2013.
Balances as at 1st June,2013
Sales Ledger Sh. 642,000 on Debit side
Purchases Ledger Sh. 103,700 on Credit side
The following were the transactions during the month
Compute the information to Purchases and Sales ledger accounts.
Date posted:
August 17, 2021
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Answers (1)
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Prepare a Purchases Ledger Control A/c from the following details for the month of June 2008.
(Solved)
Prepare a Purchases Ledger Control A/c from the following details for the month of June 2008.
Date posted:
August 17, 2021
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Answers (1)
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State the items that decrease creditor’s balance.
(Solved)
State the items that decrease creditor’s balance.
Date posted:
August 17, 2021
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Answers (1)
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State the items that increase creditor’s balance.
(Solved)
State the items that increase creditor’s balance.
Date posted:
August 17, 2021
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Answers (1)
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Draw a Sales Ledger control A/c to record the following details relating to a business.
(Solved)
Draw a Sales Ledger control A/c to record the following details relating to a business.
Date posted:
August 17, 2021
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Answers (1)
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State the items that decrease debtor’s balance.
(Solved)
State the items that decrease debtor’s balance.
Date posted:
August 17, 2021
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Answers (1)
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State the items that increase debtor’s balance.
(Solved)
State the items that increase debtor’s balance.
Date posted:
August 17, 2021
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Answers (1)
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What are Control Accounts?
(Solved)
What are Control Accounts?
Date posted:
August 17, 2021
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Answers (1)
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The following cash book relates to Jockey Ltd for the month of October, 20x3. The bank statement had a debit balance of Sh 1,353,000.
Required:
Prepare an...
(Solved)
The following cash book relates to Jockey Ltd for the month of October, 2013. The bank statement had a debit balance of Sh 1,353,000.
On investigation the following was discovered;
1. Bank charges of Sh. 136,000 in the bank statement have not been reflected in the cash book.
2. Cheques drawn amounting to Sh. 267,000 had not been presented to the bank for payment.
3. Cheques received totaling to Sh. 726,000 had been entered in the cash book but credited by the bank by 3rd November.
4. A cheque for Sh. 22,000 for expenses had been entered in the cash book as a receipt instead of a payment
5. A cheque received from John for Sh. 80,000 had been returned by the bank and marked “No Funds Available”. No adjustment has been made in the cash book
6. A standing order for business rates of Ksh 150,000 on 30th October had not been entered in the cash book.
7. Dividends of Sh. 62,000 were received and credited directly to the bank account with no entries in the cash book.
8. A cheque drawn for Sh. 66,000 for stationery had been incorrectly entered in the cash book as Sh. 60,000.
9. The balance brought forward in the cash book should have been Sh. 711,000 not Sh. 761,000.
Required:
Prepare an adjusted cash book and a bank reconciliation statement as at 31 October, 20x3 to reconcile the difference in the cash book and bank statement balance.
Date posted:
August 17, 2021
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Answers (1)