Questions

1. 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

2. 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

3. 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

4.1997 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)

5. 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)

6.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)

7. 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)

8. 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)

9. 2000 State four uses of balance sheet for business organizations. (4 marks)

10. 2000 The following information relates to Mali traders for the year ended 31st Dec 1998. Capital 1.198 250,000 . Additional investment 68,000 Drawing 92,000 Profit 180,000 Calculate the capital of Mali traders as at 31st Dec 1998 (4 marks)

11. 2000 The following information was obtained from the books of Kina Traders on 30th June 1998 Opening stock 8,000 Purchases bank 53,000 Sales 62,900 Return outwards 2,700 Closing stock 12,700 Prepare Kina Traders balance a/c for the year ended 30th June 1998 (5 marks)1. (a) 1995 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

12. 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

13. 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

14. Highlight five reasons why budgeting is important to a business organization ( 10 mks) 15.Discuss the reasons why a business organization may prepare budget (10 mks)

16. Discuss the various classes of taxes ( 10 mks)

17. Outline the disadvantages of direct taxes ( 10 mks)

18 Explain any 5 principles of public expenditures ( 10 mks)

19. Discuss the importance of a budget as a toll of control ( 10 mks)

20. Highlight any five features that a government should consider when deciding on a good tax system (10 mks)21. sate in the spaces provided below, state the business document to which each of the following statements relates (4 mks) Statement Document

A. Informs the buyer when goods were dispatched and by what means

B. A request by seller for payment in advance

C. Used to correct under undercharge in an invoice

D. Shows details of the transactions between seller and buyer during a given period

21. Highlights four problems a country by participating in international trade (4 mks)

22. 2001 outline four circumstances under which a proforma invoice may be used (4 mks) 23.Explain the following terms as used in international trade

a. LOCO

b. F.O.R

c. F.A.S

d. Bill of Landing

24. state three functions of departments of international trade in the ministry of commerce and industry (3 mks)

25. Country X has recorded a surplus balance of payments from its foreign trade. Outline four ways in which the country can spend these surplus earnings (4 mks)

26. List four benefits that a country derive from engaging in international trade (4 mks)