financial accounting.

Answer all the questions 1. Explain the need for preparation of bank reconciliation statement (5 marks) 2. Jesica started business and the following transactions took place during the year 2018. Started business with cash Sh. 36,000 Paid rent in advance Sh. 800, Purchased goods for cash Sh. 10,000, and on credit Sh. 4,000 Sold goods for cash Sh. 8,000 (costing Sh. 4,800) Required: Give accounting equation for the above transactions of Jesica for the year ended 31st December 2018 (8 marks) 3. In general four elements of manufacturing cost are usually recognized in a manufacturing account. State and explain them (7 marks) 4. Kariuki started their business on 1st January 2015 with Sh. 50,000 as their capital. The following were the transactions for one month: 2015 Sh. January 1 paid into bank 20,000 January 2 purchased furniture from modern furniture Ltd. on credit 3,000 January 6 sold goods on credit to Sylvia 3,500 January 8 paid to modern furniture Ltd. cash 2,000 January 11 purchased goods from Mandere 8,800 January 15 Paid wages in cash 200 January 20 received from Sylvia 1,500 January 21 paid into bank 1,500 January 23 cash sales 3,500 January 25 cash purchases 1,800 January 27 goods withdrawn for personal use 500 January 28 cash withdrawn for personal use January 29 paid for stationary 100 January 30 paid salaries by cheque 1,000 Required: a) Give journal entries. (7 marks) b) Prepare the ledger accounts and trial balance (13 marks) 750