Kindly help me answer the following
NUMBER THREE Naipas Supermarket Led. has a head office in Nairobi and several branches in Kenya. All goods are sent to the branches at selling price, which is fixed at 25% profit margin. The details relating to Mombasa and Kisumu beaches were as follows: Mombasa branch Kisumu branch Sh.'000' (selling price) Sh.'000' (selling price) Branch inventory (1 April 2005) 3,620 5,430 Branch debtors (1 April 2005) 370 555 Cash sales 8,654 12,981 Cash from credit customers 306 459 Returns from customers to the branch 88 1.32 Returns from customers direct to head office 24 36 Transfer to other branches 400 600 Goods sent by head office 8,240 12,360 Returns by branch to head office 144 216 Additional information: 1 Goods sent to Mombasa and Kisumu branches with a selling price of sh.120,000 and 180,000 respectively were lost while in transit to the branches. The insurance compensation received in respect of the losses was sh. 150,000. 2 The value of goods marked down to boost sales at the branches were as follows: Value at Marked Balance in stock at selling price down to marked down values (31 March 2006) Sh. '000' Sh. '000' Sh. '000' Mombasa branch 200 168 84 Kisumu branch 300 252 126 3 The debtor balances and bad debts written off were as follows: Mombasa branch Kisumu branchSh. '000' Sh. '000' Debtor balances as at 31 March 2006 378 567 Bad debts written off during the year ended 31 March 2006 64 96 (a) Branch stock accounts. (7 Marks) Branch mark up accounts. (7 Marks) Branch debtors accounts (2 Marks) Goods sent to branch accounts (2 Marks) Lost stock accounts (2 Marks) Total: 20 Marks) NUMBER FOUR Steve Mwai filed his own petition in bankruptcy and the receiving orders were issued by the court on 31 March 2006. The balances extracted from his books of account as at 31 March 2006 were as follows: Assets Liabilities Sh.'000' Sh.'000' Free hold land 1,250 Loan from bank 1,000 Furniture and fittings 710 Loans from a SACCO 500 Motor vehicle 290 Mortgage on freehold land 1,000 Stock 1,200 Sundry creditors 2,550 Sundry debtors 1,520 Bank overdraft 1,100 Bank balance 20 Drawings 560 Total assets 5.550 Total liabilities 6.150 Additional information: 1 The official receiver appointed by the court has established the realisable values of the bankrupt's assets to be as follows: Sh. '000" Freehold land 1.800 Furniture and fittings 500 Motor vehicle 140 Stock Sundry debtors: Good 1,000 Doubtful-of which Sh. 300,000 is estimated s realisable 400Bad 120 Private assets debtors other than personal effects 28 Steve Mwai's private obligations amounted to Sh. 12,000. W N The interest due on the mortgage amounting to Sh. 200,000 had not been recorded s at 31 March 2006. The loan from bank and bank overdrafts were secured by a floating charge on assets and no interest was outstanding on 31 March 2006. Sundry creditors as at 31 March 2006 comprise: Sh.'000' - Assessed income taxes (2003-Sh. 100,000, 2004-Sh.85,000 and 2005-Sh.120,000) 305 - Rent due to Government (Sh.50,000 per annum) 300 - Nairobi City Council rates for the year ended 31 December 2004. 20 5 months wages due to 5 employees at Sh. 5,000 per employee 125 - 3 months salary due to Mwai's uncle. 24 Employees NSSF contributions for 36 months at Sh. 12,000 per annum 36 Loan from Joan for purchase of trading stock. 100 The loan from Joan attracted interest of 5% per annum plus 10% interest based on the net profit made by Steve Mwai. The unrecorded interest due as at 31 March 2006 was Sh. 7,500. During the year ended 31 March 2006, Steve Mwai made business losses of Sh.830,000. Required: (a) A detailed statement showing the order of priority in which the sundry creditors would be paid. (6 Marks) (b) Statement of affairs as at 31 March 2006. (8 Marks) (c ) Deficiency accounts as at 31 March 2006. (6 Marks) (Total: 20 marks) NUMBER FIVE (a) State the fundamental requirements of a valid oral will (3 Marks) (b) Briefly explain the various types of legacies that may be bequeathed by way of a will. (4 Marks) (c ) Alex Mwema a windower, died instant on 1 January 2006. He is survived by his two sons Ken and Martin and a daughter Anette. His other daughter, Nancy predeceased him.Nancy is survived by a son, Mita and a daughter Nati. During his lifetime Alex Mwema had advanced his two sons Sh.500,000 each to enable then commence and run a hardware business. Alex Mwema has also advanced Sh.400,000 to Nati to purchase equipment for use in her hair salon business. The net estate of Alex Mwema after payment of all the expenses and liabilities on 31 May 2006 was Sh. 9,000,000. Required: A distribution statement showing how the net estate of Alex Mwema would be shared out. (6 Marks) (Total: 15 marks)
