Description
BOOK KEEPING &ACCOUNTING
Question One
- Madam Awino’s trial balance for the year ended 31/12/18 is as follows:
| Dr | Cr | |
| sh’OOO | sh’OOO | |
| Land and buildings | 15,000 | |
| Sales | 01000 | |
| Fixtures & fittings | 3,000 | |
| Salaries & Wages | 3,000 | |
| Drawings | 4,000 | |
| General expenses | 3,000 | |
| Purchases | 19,000 | |
| Motor vehicles | 8,000 | |
| Commissions | 3,000 | |
| Office expenses | 2,000 | |
| Debtors & creditors | 8,000 | 7,000 |
| Cash | 4,000 | |
| Stock 1/1/18 | 4,000 | |
| Capital | 29 000 |
- a) Stock 31/12/18 was valued at Sh.4,500,000.
Required: i) Income statement and statement of financial position as at 31/12/18 (12 marks)
- ii) Explain the common uses of accounting in a legal firm of your choice. (5 marks)
- Differentiate between the following types of accounts:
| o Real account and nominal account | (2 marks) |
| o Personal account and ledger | (2 marks) |
| c) What are main advantages of double entry | (4 marks) |
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