CSEE Book Keeping Paper 1 2012 — Past Paper & Online Quiz

1. 2 marks

The credit entry for net profit is done in the

A. trading account

B. drawings account

C. profit and loss account

D. capital account

E. income and expenditure account.

8. 1 mark

Which of the following expression is correct?

A. Assets capital = liabilities

B. Liabilities capital = assets

C. Liabilities = assets = capital

D. Assets + liabilities = capital

E. Capital + assets = liabilities

9. 1 mark

The cost of putting goods into a saleable condition should be charged to

A. trading account

B. sales account

C. profit and loss account

D. receipt and payment account

E. income and expenditure account

10. 1 mark

Which of the following describes the meaning of purchases?

A. Goods bought for cash

B. Goods bought on credit

C. Goods bought for resale

D. Goods bought and paid for

E. Goods bought and stored.

2. 10 marks

Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number.

(i) A document sent by the seller to the buyer after goods have been dispatched. 1 mk

(ii) A document written by the seller giving information that the goods ordered have been sent. 1 mk

(iii) A document provided by the carrier in which the sender fills in details of the goods to be dispatched. 1 mk

(iv) A document that gives the details of goods being sent and their quantities. 1 mk

(v) A document sent by the seller to the buyer to correct an overcharge on the original invoice. 1 mk

(vi) A document sent by the seller to the buyer to correct an undercharge on the original invoice. 1 mk

(vii) A document which shows quantities of goods dispatched and their port of destination. 1 mk

((viii) A document indicating the transport charges for the shipping of goods. 1 mk

(ix) A document sent by a seller to a buyer to confirm that the order has been received and is being processed. 1 mk

(x) A document sent by the seller to the buyer accompanying the goods being consigned. 1 mk

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3. 20 marks

(a) Define the following terms: (i) Credit transactions (ii) Supplementary Appropriation (iii) Balance sheet (iv) Subsidiary books (v) Trial balance. 10 mk

(b) List the procedures for balancing off an account. 10 mk

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4. 20 marks

Electricity and advertising paid in the year amounted to sh. 300,000. The following information was also provided. You are required to compute the amount to be charged to Profit and Loss account without opening accounts.

(a) Electricity and advertising paid in the year amounted to sh. 300,000. The following information was also provided. 2010 Accrued electricity Prepaid advertising Jan. 1 Sh. 25,000 Sh. 19,000 Dec. 31 Sh. 40,000 Sh. 24,000 You are required to compute the amount to be charged to Profit and Loss account without opening accounts. 15 mk

(b) Mr. Janguo wants to start a business, but before commencement he needs to learn book keeping. Outline five objectives for him to study the subject. 5 mk

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6. 20 marks

The Necessary Noise Sports Club had the following assets and liabilities on 31st December of the years 2006 and 2007. The following summary of the club’s receipts and payments was prepared by its treasurer for 2007: Additional information: (a) Sports ground was acquired several years ago on a 100 year lease for sh. 50,000. (b) The old sports kit sold during the year had a book value of sh. 1,500. (c) Write down furniture by sh. 300 and uniforms by sh. 3,500. Required: (i) Prepare Club’s Income and Expenditure Account for 2007 (all workings should be shown clearly) (ii) Prepare a Balance Sheet as at 31st December 2007.

2006 Sh.	2007 Sh.
Accumulated fund	50,000
Outstanding salaries	700
Refreshment Bill owing by club	nil
Sports ground	25,000
Furniture	1,300
Sports kit (a fixed asset) at valuation	12,000
Uniforms (a fixed asset)	6,500
Subscription due from members	500

CASH SUMMARY
Date	Details	Amount	Date	Details	Amount
2007	Balance b/f	5,400	2007	Dec. Salaries	6,200
Dec.	Subscriptions	23,000	31st	Travelling	7,800
31st	Donations	2,100		Stationary and postage
	Gate collection	6,500		Electricity and telephone	600
	Sale of old sports’ kit	1,000		Refreshement	500
	Purchase of new sport	5,200		Balance c/f	3,400
	kit
	Purchase of new	4,000
	uniforms
	Repairs to sports kit	3,800
	Maintenance of sports	700
	ground
			38,000		38,000

(i) Prepare Club’s Income and Expenditure Account for 2007 (all workings should be shown clearly) 10 mk

(ii) Prepare a Balance Sheet as at 31st December 2007. 10 mk

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7. 25 marks

A company depreciates its plant at the rate of 25 percent per annum, straight line method, for each month of ownership. From the following details draw up the plant account and provision for depreciation account for each of the years 2004, 2005, 2006 and 2007 and plant disposal account. Transactions made during the year were as follows:- 2004 Bought plant costing sh. 260,000 on 1 January. Bought plant costing sh. 210,000 on 1 October. 2006 Bought plant costing sh. 280,000 on 1 September. 2007 Sold plant which had been bought for sh. 260,000 on 1st January, 2004 for the sum of sh. 81,000 on 31st August, 2007.

(a) Draw up the plant account. 10 mk

(b) Draw up the provision for depreciation account. 10 mk

(c) Draw up the plant disposal account. 5 mk

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5. 60 marks

In January 1999: Peter and Patel entered into a joint venture for the purchase and sale of goods sharing profit and losses equally. The settlements between the partners were made in cash. The following transactions took place: Required:

(a) Write up the personal accounts of the partners as they would be in the books of each partner. 30 mk

(b) Draw up the memorandum joint venture account. 30 mk

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Book Keeping · Paper 1 · 2012

Book Keeping · Paper 1 · 2012

Section A

Section B

Section C

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