Answer the questions below please

15 Paid Kato by cheque Shs. 3,000,000. 17 Paid Okia his balance by cheque and purchased more goods from him on credit Shs 6,000,000. 20 Withdrew cash from bank for business use Shs 2,000,000. 23 Bought goods from Kato on credit Shs 4,000,000. 24 Returned two expired items worth Shs 100,000 to Kato. 24 Fatina paid her balance by cash and purchased more goods on credit Shs 3,000,000 25 Sauna paid her balance by cash and bought more goods on credit Shs 3,000,000. 27 Brought Shs 4,000,000 cash as additional capital into the business. 28 Goods that had costShs 450,000 were damaged by floods and were only sold for Shs 200,000 cash. 30 Paid staff wages Shs 2,000,000 cash. 30 Paid utilities by cash: electricity Shs 150,000 and water Shs 90,000. Required: Prepare, for the month of March 2019, Waliggo's: (i) Three-column cashbook (12 marks) (ii) Trade receivables control account (5 marks) (iii) Trade payables control account (3 marks) (Total 25 marks) Question 4 (a) Explain the four enhancing qualitative characteristics of accounting information. (4 marks) (b) On 30 June 2019, the accountant of Tanga Suppliers Lid realised, after extracting the trial balance, that the credit side exceeded the debit side by Shs 10,190,000. On further examination, she discovered the following issues: 1 No entry had been made for Shs 2,400,000 received from Mary in respect of goods sold to her on credit. 2 An equipment, a non-current asset that was purchased at Shs 4,000,000 had been expensed by the accounts assistant. 3 A cheque Shs 560,000 received from Obuma was credited to Osuma's account. 4 A receipt Shs 6,500,000 was credited to the cashbook as Shs 560,000 5 Returns outwards Shs 100,000 was debited to the returns inwards account as Shs 10,000.The balance of land and building was sold at Shs 158, 150,000. Mulondo will continue to service the loan as a personal loan. The un-appropriated profit was shared according to their profit sharing ratio. 7 The net trade receivables were sold at Shs 20,000,000 after allowing a discount Shs 4,000,000. 8 The cost of dissolution was Shs 1,500,000 and discount received from trade payable was Shs 550,000. CO Kirementi was insolvent and unable to clear his deficiency. 10 Apply the ruling in the case of Garner verses Murray. Required: Prepare, for the Partnership, for the year ended 31 December 2018, the following accounts: (a) Realisation. (8 marks) (b) Trade receivables. (2 marks) (c) Trade payables. (1 mark) (d) Bank. (4 marks) (e) Partners' capital (using fluctuating method). (10 marks) (Total 25 marks) Question 2 The following trial balance, for the year ended 31 December 2018, was extracted from the books of Omulamu Company Limited: Debits Credits Shs '000' Shs '000' Ordinary share capital of 200,000 shares 300,000 Share premium 40,000 Motor vehicles 75,000 Furniture 28,000 Retained earnings 23, 150 General reserves 6,450 Equipment 50,000 Provision for depreciation: Motor vehicles 11,250 Furniture 4,200 Equipment 7,500 Inventory (1 January, 2018) 13,500 Trade receivables/trade payables 12,500 9,445 Provision for doubtful debts 1,200Question 1 Kirementi, Latomenta and Mulondo have been in partnership sharing profits and losses equally. Latomenta got married to an American, while Mulondo got citizenship in London and they both decided to leave the country. Therefore, the partners agreed to dissolve the partnership. They have availed the following information: Trial balance as at 31 December, 2018: Debits Credits Shs '000' Shs '000' Land & building 220,000 Motor vehicles 36,000 Furniture & fittings 8,000 Capital accounts: Kirementi 60,000 Latomenta 50,000 Mulondo 40,000 Current accounts: Kirementi 3,000 Latomenta 32,000 Mulondo 18,000 Trade receivables/ trade payables 25,500 29,550 Bank balance 22,350 Bank loan 50,000 Inventory 12,000 Un-appropriated profit 45,000 Allowance for doubtful debts 1,500 Provision for depreciation: Building 12,000 Motor vehicles 18,000 Furniture & fittings 800 341,850 341,850 Additional information: Furniture & fittings were sold at Shs 7,000,000. CN . Net inventory is to be sold at Shs 10,000,000. Kirementi took over part of land and building at Shs 100,000,000 and motor vehicle at Shs 20,000,000 respectively.Question 5 (a) Explain the following concepts as used in accounting: (0 (ii) (iii) (W) Substance over form {2 marks) Consistence (2 marks) Realisation (2 marks) Prudence (2 marks) (b) Giving four reasons, explain the importance of preparing bank reconciliation statements. (2 marks) (c) On 31 May 2019. River Valley Ltd's bank statement showed a balance Shs 223,501,000 (credit) while the cashbook (bank column) had a balance Shs 127,000,000 (debit). On examination. the following issues were discovered: 1 2 5 Bank charges Shs 400.000 and commission fees paid Shs 500,000 for the month of April 2019 were not reflected in the previous adiusted cashbook. The following cheques were issued out but not reflected on the bank statement as at 31 May 2019: Cheque No. Shs '000' 12019 5,600 12020 11.278 12022 24.06? 12032 35,700 12036 75,000 Ledger fees for the month of May 201 QShs 35,000 and an amount due from Joy Ltd. Shs 19,000,000 were debited and credited respectively on the company's bank account. These transactions were not reflected in cashbook. The following cheques. deposited by the company on 28 May. 2019 had not been cleared by the bank by 31 May, 2019: Cheque No. Shs '000' 12356 4.000 13245 56,089 31212 8.000 14200 23,000 1007 5,756 A cheque paid to Okello Shs 32,678,000 was posted in the credit side of the cashbook as Shs 23,786,000. Debits Credits Shs '000' Shs '000' Bank 255,505 Utilities 1,650 Salaries 2,560 Rent 2,900 Purchases/sales revenue 101,500 140,650 Returns 650 500 Carriage inwards 450 Carriage outwards 200 Discounts 150 280 Commissions 180 120 M M Additional information: 1 Inventory as at 31 December, 2018 was Shs 20.000.000. It was later discovered that part of the inventory that cost Shs 5,000,000 was damaged and could only be sold for Shs 3,000,000 in an open market. This had not yet been incorporated in the books by the year end. 2 The utilities and rent prepaid were Shs 500.000 and Shs 800.000 respectively and outstanding salaries Shs 2,000,000. 3 0f the trade receivables. Shs 500,000 was written off and a provision of 2% on not trade receivables was made at the year end. The company transferred Shs 12,000,000 to general reserves. A declaration of dividends Shs 50 per share was made at year-end for the existing shareholders. This was based on the number of ordinary shares prior to the issues made in note 6 below. 6 The company issued 60,000 shares at Shs1,650 each at the year end. 7 It is the company's policy to depreciate all non-current assets at 15% on cost. 8 All transactions were made through the bank. 01-h- Required: Prepare, tor Omulamu Company Limited. for the year ended 31 December 2018. a statement of: (a) profit or loss (10 marks) (b) changes in equity (5 marks) (c) financial position (10 marks) (Total 25 marks) Question 3 (a) Wabwire, a retail trader in Ganya Town, attended a traders' workshop in his area facilitated by Umoja Revenue Authority (URA) where participants were taught about appropriate record-keeping and basic accounting skills for retail traders. During the session, the terms' accounting cycle' and 'accounting process' were mentioned several times. Wabwire has approached you, as a CTA student, to further enlighten him about the key areas talked about during the workshop. Required: Explain, with examples, the stages of the accounting cycle. (5 marks) (b) The following balances were extracted from the books of Waliggo, a sole proprietor in Buyaga Trading Centre as at 1 March, 2019: Shs '000 Capital 20,000 Cash at hand 7,000 Bank 12,000 Trade receivables: Madina 4,000 Fatina 3,000 Sauna 6,000 Trade payables: Sanyu 3,000 Kato 5,000 Okia 4,000 During the month, the following transactions took place: Date Transaction 2 Paid for goods bought on credit Shs 7,000,000 cash earning a 2% cash discount. Sold goods Shs 2,500,000 cash. Withdrew Shs 1,500,000 cash from the business to pay fees for his son. J Made sales on credit to Bayo and Kauka Shs 800,000 and Shs 600,000 respectively. CO Bayo returned goods worth Shs 50,000 because they were faulty. 10 Kauka and Bayo paid their outstanding balances in cash, each receiving a 2% cash discount for prompt payment. 12 Madina paid her balance by cheque and purchased more goods Shs 5,000,000 on credit.10 11 12 13 14 15 Standing instruction charges Shs 4.000 directly debited by the bank for the month of May2019 had not been reflected in the cashbook by the month end. Rental income Shs 17,000,000 due to the company and payment of 5% of the rental income to the property agent had not been reflected in the cashbook but was reflected in the bank statement. River Valley Ltd. paid Mr. Musana Shs 1,500,000 by cheque on 25 May but because he had no bank account, he returned the cheque on 27May and was paid cash instead. Interest on deposits for the month Shs 450,000 was reflected on the bank statement only. A cheque Shs 5,000,000 received from Mr. Tamale on 23 May and banked that same day was cancelled and returned by the bank. A cheque no: 2043 Shs 6,780,000 paid to another bank customer on 23 May was credited in error on the bank statement. Cheque No: 12003 paid to a supplier (Mary) Shs 4,300,000 had been credited twice in the cashbook while VAT refund Shs 2,200,000 was received by the bank but had not been reflected in the cashbook. A cheque paid to a supplier Jonathan Shs 1,318,000 was returned unpaid. A cheque received from MM Enterprises Shs 610,900 was debited as Shs 56,500. Dividends Shs 6,500,000 paid to the shareholders accounts and interest received from investments Shs 3,000,000 were all not reflected in the cashbook. Required: Prepare, for River Valley Ltd., for the month of May 2019: (i) An adjusted cashbook (9 marks) (ii) Bank reconciliation statement (6 marks) (Total 25 marks) 6 The amount of total sales was overcast by Shs 2,000,000 while that of total purchases was under cast by Shs 1.240.000. Required: Prepare, for Tanga Suppliers Ltd: (i) Journal entries to correct the above errors (7 marks) (ii) A suspense account (2 marks) (c) Tukole Investments Ltd. has. among other items, a number of boda boda motorcycles for hire. The following information was extracted from the company's books of account: Motorcycle Cost (Shs) Date of purchase UDE XX1L 4.400.000 1-Jan-2017 UDE XX4S 4,200,000 30-Jun-2017 UDE XX5P 4,000,000 31-Dec-2017 Additional information: 1 The company's financial year ends 31 December. 2 The company paid Shs 48,000 each year per motorcycle in respect of third party insurance. 3 Motorcycle registration no. UDE XX1L was knocked by a speeding taxi at Jinia road junction on 31 December 2017. Management decided to write it off immediately on the same day at book value. 4 Motorcycle registration no.UDE XX4S was traded for a new motorcycle-UDE 6XXPon 1 December 2018. At the time of the transaction. the old motorcycle was valued at book value. The company topped up Shs 1,730,000 to complete the purchase of the new motorcycle and also paid Shs 250,000 for registration fees and non-refundable taxes. 5 The company estimates the useful life of motorcycles to be 5 years. at the end of which a motor cycle would have zero scrap value. Full depreciation is charged both in the year of acquisition and disposal. 6 All transactions were made through the bank. Required: Prepare. for Tukole Investments Ltd.. for the years ended 31 December 2017 and 2018. a combined: (i) Motorcycles account (5 marks) (ii) Accumulated depreciation account (5 marks) (iii) Disposal of motorcycle account (2 marks) (Total 25 marks)