565/2 Accounting Questions

KCSE 2018

5 (b) The following balances were extracted from the books of Mageta

Traders on 1^st July, 2016. ( 10 marks)

Details                           Ksh

Furniture                       56,000

Capital                          80,000

Creditors                       20,000

Debtors                         25,000

Bank                             11,000 Cash                               8,000

The following transactions took place in the course of the month.

• Paid a creditor Sh. 4,500 in cash.
• Took Sh. 3,000 from the bank for family use.
• Bought stock Sh. 18,600 on credit.
• Acquired a 10 Year Bank Loan Sh. 165,000 which was credited to the business account.
• Purchased land worth Sh. 82,000 paying by cheque.
• Converted a family table worth Sh. 5,500 to business use.
• Received Sh. 7,300 in cash from debtor.

        Required: 

Prepare Mageta Traders Balance Sheet at the end of July 2016. (10 Marks)

KCSE 2016

4 (b) The following balances were extracted from the books of Rehema

Traders on 1st January 2015.                        Ksh

Capital                  600,000

Creditors              180,000 Motor van            200,000

Furniture              200,000

Stock                      60,000

Debtors                  80,000

Cash                     240,000

    The following transactions took place during the year ended 31st December   2015:

i. Sold furniture worth Ksh 60,000 for which Ksh 40,000 cash was received and the balance was due at the end of the year. ii. Purchased goods worth Ksh  100,000 for which cash of Ksh 70,000 was paid and the balance was still outstanding at the end of the year.

iii. Cash Ksh  10,000 was taken from the business by the proprietor to settle the spouse’s hospital bill.

       Required: Outline the effect of each transaction on the items of the balance sheet. (8 Marks)

6 (a) On  1st September 2015, Gondi had Ksh 55,000 in hand and      Ksh 250,000 at bank.  During the month, the following transactions took place: 

• September  2: Cash sales banked Ksh 35,260 
• September  3: Bought ribbons in cash Ksh 4,500
• September  8: Paid Wangila, a creditor Ksh 94,000 by cheque in full settlement of his  account after deducting 6% cash discount
• September  12: Received a cheque for Ksh 58,800 from Wetu after allowing her a cash discount of Ksh  1,200.
• September  15: Paid salaries Ksh 34,000 in cash
• September  25: Withdrew Ksh 50,000 from bank for office use
• September  28: Anyango, a debtor paid her account of Ksh 75,000 by cheque less  10%  cash discount
• September  30: Deposited all the cash into bank except Ksh  13,700

Required:  Prepare a three-column cash book and balance it off. (10 M)