Questions

a) Contra entry

b) Folio column

2. The following is an extract of a cash book from Ramo traders Date Particulars Cash Bank Date Particulars Cash Bank 1/1 Balc/d 2500 4500 2/1 stat 520 5/1 Sales 1200 3/1 Wages 2400 10/1 Cash 1500 10/1 Bank 1500

i. Determine the balances carried down on 10th Jan 1996 (1 mk)

ii. Give the name of the transaction on 10th Jan 1996 (1 mk)

3. Enter the following transactions as in the cash Book of Temple Traders Below (4 mks) March 5 Cash 30,000 March 10 paid a creditor Kshs 7,500 by cheque March 20 received 5,000 in cash March 15 deposited 12,500into bank March 28 Paid wages 2,400 in cash Balance 2000 Cash 2000 . Date particulars Cash Bank Date Particulars Cash Bank

4. state four uses of two column cash book (4 mks)

.5. For each of the following types of account indicate by writing Dr. or Cr. The side of record for increase and decrease Type of A/c Increase Decrease Asset Capital Revenue Expense

6. the following is an extract of a cashbook of Maisha traders Date 1998 Particular s Cash Bank Date 1998 Particular s Cash Bank 1/7 Bal b/d Sales Kamau Sales - 8000 - 16000 20000 2/7 10/7 12/7 12/7 30/7 Salary Purchases Rent Stationary Bal c/d 5000 6000 11000 20000 19000 43000 Determine the opening balances on 1.7..98 7. 2001 on July 1999 Kahawa Traders has Kshs 6,000 cash in hand, a bank overdraft of Kshs 2,000. During the month the following transactions took place a) Received cheque from debtors totaling to Kshs 80,000 b) Paid telephone bills 1,200 cash c) Withdrew Kshs 16,000 from bank for office use. Enter the above information in Kahawa traders cashbook given below and balance it off Kahawa Traders Cash Book For the month of July 1999 Date Particulars Cash Bank Date Particulars Cash Bank .

8. On 1 Match, 2001, Mingi traders had Ksh. 13,200 in cash and bank balances of Sh 56,000. The following transaction took place during the month. 2001 2 Cash sales sh. 12,000 12 paid a creditor sh. 8,200 27 received a cheque for sh. 4,500 from debtors 31 paid rent 7,500 in cash Record the above information in a two column cash book and balance it off. (4 mks)

9. Outline the uses of two column cash book (4 mks)

10. The following is an extract of a cash book. Date 2002 Particular s Cash Bank Date Particular s Cash Bank 2/5 12/5 20/5 28/5 Bal Sales Sales W 20000 50000 X 120000 6/5 18/5 22/5 30/5 Wages Purchases Rent Bal c/d 6000 Y 60000 30000 150000 Determine the figures represented by W, X, Y,Z (4 mks)

1. Outline four benefits that customers get from small - scale retailers. (4 mks)

2. Highlight four benefits that accrue to a customer who buys directly from a manufacturer (4 mks)

3. Name four channels the a manufacturer would use to distribute his goods to the Customer (4 mks)

4. highlight four factors that should be considered in choosing a method of distributing agricultural produce (4 mks)

5. give disadvantages of long chain of distribution of goods to a buyer (4 mks)

6. State four benefits to a large consumer who buys directly from the producer. (4 mks) 7. Outline four benefits to a large consumer who buys directly from the producer. (4 mks) 8. highlight four circumstances under which a manufacturer may prefer to sell goods directly to the consumers (4 mks)

1. Describe five circumstances under which a producer would sell his goods to his consumers (10 mks)

3. Zango manufacturers who have been selling their products directly as retailers have decided to distribute the products through wholesalers

1. Explain five benefits that Zango manufacturers may get from this new arrangements. (10 mks

3. Describe five channels that can be used to distribute locally manufactured goods (10 mks)

4. explain four factors that may be considered in determining the appropriate channel for distributing goods (10 mks)

5.discuss circumstances under which a wholesaler becomes essential in the chain of distribution (10 mks)

6. explain the channel of distribution for imported goods (10 mks) 7. Kabu manufacturers have decided to distribute their goods through wholesalers

. Discuss five benefits that would account to Kabu manufacturers (10 mks)

. (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

2. 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

3. 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 4. 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

5. 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

6. 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. 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. 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)

10. 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)

11. 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)

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

13. 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)

14. 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)

15. The following balances were obtained from the books of Rah traders Opening stock 50,000 Sales 360,000 Gross profit 25% of sales Calculate a) Cost of goods b) Rate of stock turnover (5 marks)

16. Cumvi Traders had a capital of sh 180,000 as at 31.12.1998 Additional information a) during the year the owner converted her private car worth 90,000 for business use b) Goods worth sh. 50,000 were taken from the business for her own use c) Net profit for the year was sh 140,000 Calculate capital as at 31 Dec. 1999 (3 marks)

17. The following figures obtained from the records of Buka Enterprises for the year ended 30th June 2000 Sales 500,000 Cost of goods sold 280,000 Calculate the gross margin (4 marks)

18. the following transactions relates to Tajira Traders for the month of January 2001 Jan 1 started business with Kshs. 20,000 in cash Deposited 15,000 from cash till into a business Bank account Bought goods on credit from Wema traders for 6,000 Bought furniture by cheque sh 3,000 Prepare balance sheet as at 31st January 2001

19. The following balances were extracted from the books of Vuno Traders for the year ended 31st March 2001 . Gross profit 186,200 Carriage outwards 13,500 Rent received 34,300 Office expenses 19,600 Salaries 57,000 Prepare profit and loss for the year ended 31st March 2001 (5 marks) 20. 2003 Ngoma traders had the following transactions Feb. 2 bought goods costing sh 400,000 from Maiyo traders sh. 650,000 by cheque as a part of payment for goods received. Received the above transaction in the account below and balance it off. (5 marks) ended 30th June 2001. Opening stock 2,000 Purchases 8,500 Closing stock. 2,500 Sales 10,000 Required: a) The trading Account for the period ended 30th June 2001 b) Calculation of the mark up (5 marks)

22. . Below is a balance sheet of Lela Traders as at 31st Dec 2001 Lela traders. Balance sheet as at 31st Dec 2001 Capital 1.1 2001 78,000 F.A 87,800 Add net profit 42,000 C.A 55,200 120,000 C.L 23,000 143,000 143,000 Calculate a) Correct ratio b) Return on capita