Questions

1.The following Trial balance was prepared from the books of Paka Traders as at 31st December 1995. Trial balance December 31st 1995 Dr. Cr. Kshs Kshs Sales 900,000 Purchases 600,000 Dr Maiyo traders A/C Cr Date Details Kshs Date Details Kshs 21. 2003 the following information was extracted from the books of Mutua for the period . Returns inwards 80,000 Returns outwards 20,000 Carriage in 40,000 Carriage out 3,000 Stock (Jan) 100,000 Rent 60,000 Creditors 170,000 Debtors 120,000 Interest expenses 18,000 General expenses 7,000 Capital 178,000 1,268,000 Creditors 240,000 6,226,000 6,226,000 Additional information Stock as at 31st December was 100,000

i. prepare Trading, profit and Loss account for the period ended 31 December 1999

ii. calculate return on capital, current ratio and debtor's ratio (10 marks) 2

2.The following is a balance sheet of Bambu traders as at 31st December 2000 Bambu Traders Balance sheet as at 31st December 2000 a) Sales during the year amounted to Kshs 2,000,000 b) Stock on 1 January 2000 was Kshs. 100,000 c) Gross profit margin was 20% Calculate

i) Current ratio

ii) Gross profit mark up

iii) Rate of stock turnover

3. the following trial balance was extracted from the books of Maringo traders on 31st December 2001 Maringo traders Trial Balance as at 31st December 2001 Gross Profit 380,000 Closing stock 274,000 Capital 259,000 Drawings 83,000 Creditors 93,000 Premises 103,000 Debtors 123,000 Cash at bank 33,000 . Bank loan (1 yr) 50,000 General expenses 54,000 Commission received 20,000 Wages and salaries 132,000 802,000 802,000 Prepare ) Profit and loss Account for the year ended 31st December 2001 b) Balance Sheet as at 31st December 2001 (12 mks)

4.the following information was extracted from the books of Sarai Traders for the year ended 30 April 2003 Sales 480,000 Opening stock (1.5.02) 80,000 Gross profit is calculated at 25%

i) Prepare trading account for the period ended 30 April 2003

ii) Calculate the rate of stock turn over (10 mks)

5. The following balances were extracted from the Tango traders as at 31st December 2004 Motor vehicle 80,000 Plant and machinery 70,000 Loan from Bank 60,000 Stock 25,000 Debtors 30, 000 Creditors 15,000 Bank 20,000 Prepare balance sheet for Tango Traders as at 1st December 2004. (5 mks)

6. 2005 the following information refers to tea traders for the year ended 31/12/04 Sales 800,000 Expenses 10,000 Commission received 15,000 Purchases 700,000 Opening stock 250,000 Margin 20% Prepare trading, profit & loss a/c for the year ended 31/12/04

7. (1) The following balances were extracted from books of Motop Traders for the year ended 31/12/2004 Rent 48,000 Lighting 7,200 Water 9,220 Salaries 75,000 Commission received 8,500 . Discount allowed 4,600 Discount received 8,500 Gross profit 320,000 General Expenses 98,000 Stock 5,250 Motor Vehicle 2,300,000 Furniture & equipment 650,000 Debtors 270,000 Creditors 396,400 Bank 200,000 Cash 50,000 Capital 3,000,000 Prepare: Profit and loss a/c for the year ended 31/12/2004 Balance sheet as at 31/12/2003.

8.(a) 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

5. 1 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

6. 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 7. 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

8. 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

9. 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 7. 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) 8. 1998 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) 9.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)