This document contains information from the books of Danny Musenge for October 2018, including beginning balances, sales and purchases on credit, cash transactions, payments made, and returns. It asks to prepare a 3-column cashbook, sales daybook, and purchases daybook from the information provided. It also contains questions about the accounting equation, financial statements, ledger accounts, and a partnership problem.
This document contains information from the books of Danny Musenge for October 2018, including beginning balances, sales and purchases on credit, cash transactions, payments made, and returns. It asks to prepare a 3-column cashbook, sales daybook, and purchases daybook from the information provided. It also contains questions about the accounting equation, financial statements, ledger accounts, and a partnership problem.
This document contains information from the books of Danny Musenge for October 2018, including beginning balances, sales and purchases on credit, cash transactions, payments made, and returns. It asks to prepare a 3-column cashbook, sales daybook, and purchases daybook from the information provided. It also contains questions about the accounting equation, financial statements, ledger accounts, and a partnership problem.
This document contains information from the books of Danny Musenge for October 2018, including beginning balances, sales and purchases on credit, cash transactions, payments made, and returns. It asks to prepare a 3-column cashbook, sales daybook, and purchases daybook from the information provided. It also contains questions about the accounting equation, financial statements, ledger accounts, and a partnership problem.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 6
QUESTION ONE
a) i) The following information was obtained from the books of Danny Musenge for the month of October, 2018: 1/10/18 Balances brought forward were: Cash K5,000, Bank K25,000 2/10/18 Sold goods on credit to: Jacob K2,500, James K3,250, John K1,000 5/10/18 Cash sales were K7,500 6/10/18 Cash of K6,000 was deposited into the business bank account 8/10/18 Bought goods on credit from: Tembo K1,500, Tendai K 2,000 10/10/18 Cash purchases were K2,500 11/10/18 Paid for Rent by cheque K1,000 12/10/18 James returned goods to us K250 and we returned goods to Tendai K300 15/10/18 We paid the following by cheque in each case deducting a 5% cash discount: Tembo, and Tendai 16/10/18 We received from the following by cheque, in each case deducting a 2.5% cash discount: Jacob, and James 18/10/18 Withdrew cash from the bank for official use K1,250 19/10/18 Paid wages by cheque K4,000 21/10/18 Bought a motor Vehicle by cheque K8,000.
Required: i) Prepare a 3 – column cashbook for the month of October, 2018 [8] ii) Prepare the Sales day book and Purchases daybook [7]
b) Fill in the blank spaces [5]
Daybook Source Purpose or use A/c to be A/c to be document debited credited Sales i) ii) - Sales daybook A/c iii) Original iv) v) - Invoice vi) Receipts, Record all Cash and bank Cash or Bank tickets transactions Bank overdraft Returns Vii) viii) Returns - Inwards inwards daybook account ix) x) Record all small cash All - transactions of the expense business QUESTION TWO
a) Bookkeeping and Accounts involves the recording of business transactions
from the source documents into books of accounts while Accounting is the analyzing, summarizing, interpreting and communicating of accounting information to relevant stakeholders. i) State any 3 users of accounting information [3] ii) Identify and explain any 3 uses of accounting information [3] b) i) What do the following stand for: IFRS, IASB, GAAP, IASC, FASB and IFAC [6] iii) Explain the following accounting conventions and principles: Business Entity, Prudence, and Accruals concept [8]
c) The following ledger account was obtained from the books of Chibomba Ltd:
Answer the questions below with reference to Kabubi’s account above:
i) In which type of ledger book would this Account be found? ii) In which class of accounts does this account belong? iii) Who is Kabubi to Chibomba? iv) Explain the transaction that took place on 5/09/18? v) Explain the transaction that took place on 15/09/18 vi) R/D stands for what and what does it mean? vii) Why was the transaction on 15/09/11 repeated on 22/09/18 viii) What is the other name for copy invoice ix) SRDB are initials for …… x) How much was Kabubi owing Chibomba on 30th September, 2019 [5]
QUESTION THREE a) Final Accounts are prepared to determine the profitability, net worth and liquidity of the business in a given period of time. i) Identify 3 main statements that are prepared periodically to achieve the above 3 purposes. [3] ii) Identify the main elements that are dealt with in the Balance Sheet [2] b) The table below is a Trading and profit and Loss Account. Calculate the missing figures from i) to xx) [10] NET PROFIT COST OF EXPENSES TURNOVER GROSS (K) SALES (K) (K) (K) PROFIT (K) i 1,500,000 1,500,000 5,500,000 Ii 1,000,000 2,550,000 iii iv 4,000,000 v vi 3,000,000 10,123,000 7,123,000 vii 6,000,000 2,200,000 viii 5,000,000 200,000 500,000 ix 1,200,000 X xi xii 20,000,000 25,000,000 18,000,000 (2,000,000) 8,100,000 xiii xiv (2,300,000) (750) 250 xv 500 xvi (2,688,797) 33,000,000 xvii xviii 17,311,203 xix 3,500,000 12,000,000 13,000,000 xx
c) The Balance Sheet is a statement that shows the financial position of the business at any given time. Compute the missing figures for the balance sheet [5] Capital Net Profit Net Working Drawings Fixed Assets Capital Assets 30,000,000 35,000,000 55,000,000 i) ii) 20,000,000 iv) 40,000,000 iii) 10,000,000 35,000,000 65,000,000 45,000,000 v 80,000,000 40,000,000 15,000,000 vi 3,500,000 1,500,000 vii) 2,500,000 500,000 viii) 10,000,000 500,000 x ix) 350,000 5,000,000
QUESTION 4 Kaleji and Nsama have been in partnership, selling computers and related accessories. Their agreement provides that each of them is entitled to interest on capital of 5% per annum and is charged interest on drawings of 2% per annum. Their profit sharing ratio is 3:2 respectively.
The firm’s trial balance as at 31 December, 2018, was as follows:
Dr. Cr. K K Carriage Inwards 16,700 Returns Inwards 15,200 Salaries and wages 45,000 Office expenses 3,200 Rent and rates 3,800 Postage and stationery 2,650 Bad debts written off 4,500 Provision for bad debts (01.01.18) 780 Discounts received 250 Sales 350,000 Trade Creditors 38,400 Trade Debtors 48,500 Stock at (01.01.18) 65,400 Purchases 165,000 Motor Vehicles at cost 20,000 Office equipment at cost 18,000 Provision for depreciation at (01/01/18) - Motor Vehicles 4,000 - Office equipment 3,600 Cash at bank 16,900 Drawings: - Kaleji 35,000 -Nsama 15,500 Current accounts: -Kaleji 6,240 -Nsama 2,920 Capital accounts: -Kaleji 45,000 -Nsama 30,000 478,270 478,270 Additional information (i) Rent and rates paid in advance K990 (ii) Arrears for postage and stationery are K360 (iii) The provision for bad debts is to be adjusted to K 500 (iv) With effect from 1 July 2011 partners were entitle to a salary per annum as follows: Kaleji, K36,000, Nsama K24,000 (v) Motor vehicles are to be depreciated at 20% per annum on a reducing balance basis, and Office equipment at 10% on a straight line basis. (vi) Stock at 31 December, 2018 was valued at K82,800.
Required: (a) Prepare the Partnership Statement of Comprehensive Income. [8] (b) Prepare the Appropriation Account and Current Accounts for the Partnership for the year ended 31 March 2012 [4] (c) A statement of Financial Position as at 31 March 2012 [8]
