Heri Majaliwa is a sole trader who keeps records of his cash and bank transactions. His transactions for the month of March were as follows: March 1 Cash in hand sh. 10,000 cash at bank sh. 567,200 4 Heri received a cheque for sh. 124,600 from W. Wanguvu which was paid directly into the bank. This represented sales. 6 Paid wages in cash sh. 3,900. 8 Sold goods for cash sh. 15,200. 10 Received cheque from G. Dasuna for sh. 31,500, in full settlement of a debt of sh. 34,400; this was paid directly into the bank. 11 Paid sundry expenses in cash sh. 7,300. 14 Purchased goods by cheque for sh. 80,000. 18 Paid J. Samaki a cheque of sh. 18,500 in full settlement of a debt of sh. 20,100. 23 Withdrew sh. 4,500 from the bank for office purposes. 24 Paid wages in cash sh. 3,900. 26 Sold goods for cash sh. 9,400. 28 Paid salaries by cheque sh. 23,000. 31 Retained cash amounting to sh. 15,000 and paid the remainder into the bank. You are required to enter above transactions within T ­ accounts and bring down the balances.

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An allowance for doubtful debts is created

Depreciation can be described as the

If it is required to maintain fluctuating capitals then the partners’ share of profits must be

(b) From the following particulars extracted from the books of a trader under the single entry system, you are required to find out figures for credit sales, credit purchases by showing the total debtors account, total creditors account as well as bills receivable account.

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

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Answer all questions in this section.

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King Majuto is employed by a firm on salary commission basis. His monthly salary is sh. 150,000. He is entitled for commission as follows: On first sales of sh. 1,000,000 ­ 2% On the next sales of sh. 2,000,000 ­ 5% On the balance of sales ­ 10% King Majuto sold goods worth sh. 6,000,000 for the month of April 2011. Calculate King Majuto’s total income for the month of April 2011. The following information was extracted from the final accounts of Majani Mapana’s business on 31st ​July, 2012. Transactions during the year: Sh. Sales 300,000 Purchases 130,000 Stock (1/8/2011) 36,000 Fixed assets 200,000 Current assets 90,000 Current liabilities 74,000 Total expenses 20,000 Stock (31/7/2012) 25,000 Calculate the following financial ratios: (i) Margin (ii) Mark-up (iii) Return on capital (iv) Working capital ratio (v) Rate of stock turnover. Indicate the accounts to be debited or credited from the following transactions.

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From the following transactions prepare the suspense account and pass journal entries to rectify the following errors assuming the existence of suspense account. The suspense account had a debit balance of sh. 16,000 prior to the above adjustments.

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J. Kazimoto is the proprietor of a shop selling paintings and ornaments. For the purposes of this financial statements, he wishes the business to be divided into two departments: Department A Paintings, Department B Ornaments. The following balances have been extracted from his nominal ledger at 31st August, 2010. The appointment should be made by using the methods as shown: Area – Fire insurance, lighting and heating, repairs, telephone, cleaning air conditioning; Turnover – General office salaries, Accountancy, general office expenses, rent and rates, administration expenses.

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