Description
BOOK KEEPING & ACCOUNTING
Question One (a)
- Explain the following classes of accounts:
- Personal account (1 mark)
- Real account (1 mark)
- Nominal account (1 mark)
- Identify and explain atleast FOUR (4) users of accounting information in a law firm.
(4 marks)
- Differentiate between the following terms implied in accounting:
| • Carriage inwards and returns inwards. | (1 mark) |
| • Prepaid expenses and accrued income | (1 mark) |
| • Bad debts and provision for bad debts | (1 mark) |
- Jane Mwihaki opened a small business in Gikomba on 1 st October 2019. Her transactions for the month of October were as follows:
October 2 Opened a bank account and deposited shs. 150,000, paid by cheque
- Paid rent in cash shs 13,000
- Purchased goods for shs 160000 from Mareva and Company on credit
- Sold goods for shs. 260,000 cash
- Banked shs. 230,000
9 Purchased office furniture for shs 150,000 paid by cheque
- Purchased goods for shs. 130,000 from Mwango Drapers and paid half of the amount by cheque
- Sold goods worth shs. 126,000 on credit to Mbaya exporters.
- Mbaya Exporters returned goods worth shs 16000
16 Received a cheque of shs. 60,000 from Mbaya exporters
19 Purchased goods on credit from S. Omolo
21 Sold goods of shs. 15000 on credit to BX Boutique
- Paid Marwa and Company shs. 144,000 in full statement of the amount owned to them by cheque
- Withdrew cash shs. 16,000 for personal use.
26 Bought goods shs. 18,000 and paid by cheque
BX Boutique paid by cheque shs. 13,500 in full settlement of other debt
28 Paid by cheque Mwango Drappers debt
31 Paid salaries shs. 15,000 and water bill shs 1700 by cheque
Required: Relevant entries to the ledger and extract her trial balance as at 31 st October 2019. (15 marks)
BOOK KEEPING & ACCOUNTING 1 2020-1-2
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