Q1 a)i Briefly explain the importance of accounting information to a young entrepreneur

ii) Discuss the qualities of accounting information

iii) Briefly discuss the purpose and content of the balance sheet

iv) Classify the following items into liabilities, assets, and capital

Unpaid electricity Unpaid dividend

Machinery Owners Equity

Bank Loan Cash in hand

b)i)Define the term source document. Discuss the details and purpose of two source documents.

ii) Joseph made the following purchases during the month of July 2018.

July 1: From Isaac, credit purchases , 4 radios @Shs3000 each, 3 washing machines @Shs16000 each,less 25% trade discounts through Invoice no. 4083.

July 5: From Bell, credit purchases, 5 iron boxes @Shs2000 each, 6 radios @shs7200 each, less 30% trade discount through Invoice no. 1003

July 18: Cash purchases: 4 radios @shs5000 each ,less 5% trade discounts receipt.3089

July 30: From Lewis, credit purchases 4 fridges @ Shs7,000 less 15% trade discount through invoice.38

Required:

i)Prepare the purchases journal for the month

ii)Post the items to the creditors personal accounts

iii) Post the totals of the journal to the purchases A/C in the general ledger

c)Differentiate between the following terms

i)Bad debts and provision for bad doubtful debts

ii) Accrued expenses and prepaid expenses

ii) Carriage inwards and carriage outwards

d) Clearly explain the imprest system