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The estimates and expenditure details relating to the ministry of Youth and social services for the year 2010/2012 were as follows Code Details ...

      

The estimates and expenditure details relating to the ministry of Youth and social services for the year
2010/2012 were as follows
Code Details
Original estimates Actual expenditure
Sh. "millions" Sh. "millions"
010 Personal emoluments 288 324
050 House allowances 54 46.8
080 Passage and leave 18 16.2
115 Travelling expenses 79.2 82.8
140 Electricity and water 21.6 23.4
221 Purchase of Equipment 180 144
640 Appropriation-in-Aid 54 43.2

Supplementary estimates authorized during the year were as follows
010 Personal emoluments Sh. 28.8 million (increased)
115 Travelling expenses Sh. 7.2 million (reduced)

Required:
Appropriation account for the year ended 30June 2011, showing the net surplus to be surrendered to the exchequer

  

Answers


Francis
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francis1897 answered the question on October 3, 2022 at 07:16


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    Furniture and Fittings 540 ?
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    2013 1,380
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    Kate and John formed a partnership business to sell Chinese motorbikes in Mombasa city sharing profits and losses in the ration of 3:1 respectively. On 1 April 2012, Kate contributed sh.15,000,000 and John sh.5,000,000 which was immediately deposited in a newly opened bank account of the partnership.
    Additional information:
    1. Sales proceeds banked during the year amounted to sh.109 million.
    2. The cashier had paid the following expenses from sales proceeds before banking the balance:
    • Rent of go downs and offices at sh.100,000 per month.
    • Office running expenses at sh.10,000 per week.
    • Casual wages at sh.4,000 per week.
    • Local transport at sh.7,000 per week.
    • Partners were allowed to draw salaries per month as follows: Kate sh.30,000 per month.
    John sh.36,000 per month.
    The partners made all their drawings for the year.
    Assume there are 52 weeks in the financial year ended 31 March 2013.
    3. The partnership paid the following amounts through the bank:
    In Shillings:
    Purchase of furniture and fittings 128,000
    Purchase of computers 900,000
    Staff salaries and wages per month 100,000
    Purchases 96,000,000
    Drawings (per month):
    Kate 100,000
    John 80,000

    Licenses and clearing charges 1,920,000
    Bank charges (per month) 3,000
    Telephone per month 8,000
    Freight charges 576,000
    Electricity bill 10,000
    4. Analysis of transactions revealed that:
    • Accounts receivable amounting to sh.900,000 were outstanding at the year end.
    • Inventory of motorbikes at the year end at cost was sh.8,700,000.
    • Included in the inventory of motorbikes above are motorbikes which cost sh.1,100,000 but which can
    now be sold for sh.800,000 only, because of impairment in value in the go down.
    • The telephone and electricity bills for the month of March 2012 were paid on 3 May 2012.
    • Accounts payable for purchases amounting to sh.600,000 were unpaid at the year end.
    5. The partners are entitled to 10% interest on their fixed capitals per annum.
    6. Depreciation is to be provided on furniture and fittings and computers at the rate of 12.5% and 20% per annum on cost respectively.

    Required:
    (a) Income statement and profit and loss appropriation account for the year ending 31 March 2013.
    (b) Statement of financial position as at 31 March 2013.

    Date posted: September 30, 2022.  Answers (1)

  • Mary Atieno, a sole proprietor, operates a business but does not observe the double entry rule of book-keeping. The following balances were extracted from her books...(Solved)

    Mary Atieno, a sole proprietor, operates a business but does not observe the double entry rule of book-keeping.
    The following balances were extracted from her books as at 31 October 2011.
    Sh. "000"
    10% loan 6,000
    Freehold property at cost 6,000
    Motor Vehicles (net book value) 7,500
    Furniture and Fittings (net book value) 2,400
    Trade receivables 5,000
    Allowance for doubtful debts 250
    Accruals 150
    Trade payables 3,800
    Bank overdraft 600
    Inventory 3,900
    The following transactions relate to the financial year ended 31 October 2012
    1. Discounts received and discount allowed amounted to sh.400,000 and sh.700,000 respectively.
    2. Bad debts of sh.200,000 were written off. The allowance for doubtful debts is to be maintained at 5% of the trade receivables at the end of the financial year.
    3. The following transactions were processed through the bank account.
    Sh. "000"
    • Cash sales 7,200
    • Cash purchases 2,400
    • Proceeds from the sale of a motor vehicle 1,200
    • Collection from trade receivables 18,900
    • Payment to suppliers 19,400
    • Loan repayments (30 April 2012) 1,000
    • Purchase of furniture 2,000
    • Drawings 600
    • Interest on loan 300
    • General expenses 350
    • Electricity expenses 650
    • Salaries and wages 1,600
    4. The business makes a normal gross profit margin of 25% on selling price.
    5. Motor vehicles are depreciated at the rate of 20% per annum on a reducing balance basis. A full year’s
    depreciation was provided on a motor vehicle which was disposed of in the course of the year. The motor
    vehicle had been bought at sh.2,500,000 and had am accumulated depreciation of sh.1,220,000 at the time of
    disposal.
    6. Furniture is depreciated at the rate of 10% per annum on cost effective from the date of purchase. The
    additional furniture was purchased on 1 May 2012 while the cost of the furniture at the beginning of the year
    was sh.4,000,000.
    7. Sales and purchases were all on credit and amounted to sh.20,800,000 and sh.19,000,000 respectively.
    8. Accrued electricity expenses as at 31 October 2012 amounted to sh.190,000
    Required:
    (a) Income statement for the year ended 31 October 2012.
    (b) Statement of financial position as at 31 October 2012.

    Date posted: September 30, 2022.  Answers (1)

  • Explain four considerations that management should take into account in choosing the basis of cost apportionment.(Solved)

    Explain four considerations that management should take into account in choosing the basis of cost apportionment.

    Date posted: May 16, 2019.  Answers (1)

  • In relation to a manufacturing concern, Explain the term "cost apportionment".(Solved)

    In relation to a manufacturing concern, Explain the term "cost apportionment".

    Date posted: May 16, 2019.  Answers (1)