1.

2002 State the term that best fit each of the following description

i. Money brought into the business by owner_______ ii.

Goods bought for resale______

iii. Money borrowed by the owner of business.

(4mks)

2.

2003 For each of the following transactions, indicate with a tick in the spaces provided

whether the following business transaction will increase, decrease or have no effect on the

balance sheet total.

Transaction

Effects on the balance Sheet

Increase

Decrease

No effect

a)

investing more cash in the business

b)

paying creditors in cash

c)

Buying a piece of furniture in cash

3.

2004 in the spaces provided, indicate with a (x) whether each of the following transactions

will increase, decrease or have no effect in the balance sheet.

(4 marks)

Transaction

Increase

Decrease

No effect

a. buying stock in cash

b. Depositing extra cash into

Business account

c. Drawing cash for personal use

d. Buying stock on credit

20.

THE LEDGER

1996 The following trial balance of Onyati was incorrectly prepared in 30th June 1995.

Prepare the correct Trial Balance.

Dr.

Cr.

Capital

99,600

30,520

Debtors

Creditors

25,670

80,000

Motor vehicles

Cash

2,500

Stock

140,250

110,520

2.

1997 prepare trial balance from the following balances extracted from the books of San

enterprises on 30th April, 1995

Shs

Capital

947,000

Cash

74,000

Premises

870,000

Debtors

36,520

Creditors

45,300

Stock

12,250

(4 marks)

3.

2001 The following account balances were obtained from the books of Kiboko Traders on

30th June 1999.

Motor vehicle

240,000

Current liabilities

440,000

Land + building

200,000

Current assets

420,000

Furniture 60,000 Capital 480,000

Prepare trial balance for Kiboko traders as at 30th June 1999.

4.

2002 The following balances were extracted from the books of Dipa traders as at 31st

December 2000.

Cash 35000

8.

2004 For each of the following transactions state the account to be debited and credited.

(4 marks)

Transactions

A/c debited A/c credited

a) paid a creditor from private source

b) proprietorship brought in cash from private sources

c) Bought goods and paid by cheque

d) Proprietor withdrew cash for personal use

9.

2004 Record the following transactions in ledger accounts.

a)

Received Ksh. 20,000 cash in respect of rent paid

b)

Purchased goods worth 30,000 on credit from crown traders.