(a) the following is an extract of balances from the books of Otwa traders as at 31st

October 1994

Accrued rent 4,000

Cash in hand 7,500

Trade creditors 3,000

Stock 4,000

Bank overdraft 6,000

Prepaid insurance 1,400

Trade debtors 2,600

Prepare statement showing working capital (5 mks)

b) The capital account of Nyota traders showed a balance of Kshs 50,000 as at 1st July

1994. For the year 30th June 1995, the following information was available.

i) Proprietor brought in a personal car worth 80,000 for the business use

ii) Net profit amounted Kshs 64, 000. The proprietor withdrew 32,000 from the business

for personal use. Prepare the capital account at 30th June 1995

2. the following account balances were extracted from the books of Sawato traders on 30th

September 1995.

Purchases 190,550

Opening stock 35,500

Closing stock 25,000

Sales 256,050

Sales return 4,800

Calculate

i. Cost of goods sold ( 5 mks)

ii) Percentage of gross profit and net profit

3. 1996 the following account balances were extracted from the books of Kitu traders on 30th

November 1995

Machinery 250,000

.

Debtor 62,000

Creditors 46,000

Stock 12,680

Cash in hand 1,500

Cash at bank 15,000

Determine the capital as at 30th November1995

4. The following balances sheet relates to Jambo Traders Jambo traders balance

sheet as at 30th June 1995

Calculate Jambo Traders current ration (5 mks)

LIABILITIES ASSETS

Capital 127,000 Machines 90,000

Bank Stock 20,000

Overdrafts 12,000 Debtors 32,000

Creditors 25,000 Cash in hand 22,000

164,000 164,000

5. During the month of July 1995 Kungu made sales worth Kshs.60,000. His margin on

sales was 20%, calculate;

a) The cost of goods sold

b) The gross profit

6. for each of the following transactions indicate with a tick the effect on capital. (4 mks)

Transaction Increase Decrease No Effects

(i) Withdrew cash for personal use

(ii) Used personal savings to buy stock

(iii) Paid a creditor by cheque

(iv) Bought office furniture in cash

7. The following balances were extracted from the books of Waso traders on 30th October

1995.

Cash 20, 520

Bank 160,230

Premises 800,000

Debtors 40,000

Creditors 62,000

2 year loan 40,000

Stock 2,500

Prepare balance sheet (5 marks)

8. 1998 The following information was extracted from the books of Kwaso traders on 31st

August 1997.

Gross profit 130,800

Carriage of sales 4,700

.

Commission received 8,000

General expenses 18,200

Insurance 4,000

Prepare profit and loss A/C (5 marks)

9. The balance sheet of Moba Enterprises for the year ended 30th June 1996 is given

below. Moba enterprises sheet as at 30th June 1996.

Calculate the return on

a. Capital invested

Sh sh sh

Capital 1,200,000

N.p 240,000 1,440,000

F.A 1,400,000

74,000

C.A

C.L

Creditors 3,400

1,474,000 1,474,000

(5 marks)

10. The following account balances were extracted from the books of Kiboko enterprises

on 30th June 1997.

Opening stock 65,000

Sales 280,000

Purchases 190,000

Purchases returns 10,000

Sales returns 4,200

Closing stock was Kshs. 70,000 as at 30th June 1997. Prepare the trading a/c for period

ended 30th June 1997. (4 marks)

11. The following information was extracted from the books of Peshau Traders as at April

1998

Cost of goods sold 65,000

General expenses 280,000

Capital for the period was 20% 10,000

Calculate rate of net profit to capital (5 marks)

12. 2000 State four uses of balance sheet for business organizations. (4 marks)