Professional Documents
Culture Documents
QUESTION ONE
(b) S. Kiwanuka opened a textile business on 1 January 1995. His transactions for the
month of January were as follows:-
REQUIRED:-
(b) Make relevant entries in the ledger and balance all accounts. (6 Marks)
(Total: 20 Marks)
QUESTION TWO
(c) Enter up the Sales, Purchases, Returns inwards and Returns outwards journals
from the following details then post the items to the relevant accounts in the Sales
and Purchases ledgers. Transfer the totals of the journals to the relevant accounts
in the ledger.
1996
May: 1 Credit sales: T. Mzungu Shs.560; L. Kangethe Shs.1,480;
K. Wanga Shs.1,450.
3 Credit purchases: P. Pamba Shs. 1,440; H. Masunde
Shs250; B. Sukuma Shs.760.
7 Credit sales: K. Kihara Shs.890; N. Musinga Shs.780; N.
Osoro Shs.2,570.
9 Credit purchases: B. Kiugu Shs.240; H. Masunde Shs.580;
H. Maina Shs.1,230.
11 Gods returned by us to: P. Pamba Shs.120; B. Sukuma
Shs.220.
14 Goods returned to us by: T. Mzungu Shs.50; K. Wanga
Shs.110; K. Kihara Shs.140.
17 Credit purchases: H. Masunde Shs.540; B. Kiugu Shs.650;
L. Nabenga Shs.750.
20 Goods returned by us to B. Sukuma Shs.140.
24 Credit sales: K. Kuria Shs.570; K. Kihara Shs.650; O.
Mbare Shs.1,120.
28 Goods returned to us by N. Musinga Shs.240.
31 Credit sales: N. Osoro Shs.550.
16 Marks
3
(Total: 20 Marks)
QUESTION THREE
(a) Define the term imprest system for petty cash. (1 Mark)
(b) G. H. Wholesalers operate an imprest system for petty cash with a float of
Shs.50,000. Disbursements are made every two weeks or when the cash balance
in hand falls below Shs.5,000 whichever comes earlier.
The following were the transactions for the month of October, 1997:-
Shs.
October 1 Balance 15,400
2 Travelling expenses 4,050
2 Purchase of stationery 2,560
3 Office expenses 1,625
3 Salary advances 4,800
4 Medical expenses 545
6 Office expenses 1,548
6 Travelling 2,745
8 Purchase of stationery 5,675
15 Salary advances 23,500
15 Medical expenses 2,350
15 Cleaning materials 375
21 Office expenses 2,870
21 Electricity charges 5,670
21 Cleaning materials 987
27 Purchase of stationery 1,540
27 Purchase of office furniture 15,365
27 Repairs of equipment 5,670
30 Salaries and wages 8,675
30 Travelling 5,690
30 Office expenses 8,940
31 Purchase of office equipment 15,000
31 Office expenses 3,000
REQUIRED:-
(a) Write up the imprest petty cash book for the month of October, 1997 and bring
down the balance. (14 Marks)
(b) Post the total monthly expenses to the relevant ledger accounts. (5 Marks)
(Total: 20 Marks)
4
QUESTION FOUR
(a) Explain the errors that do not affect the agreement of the trial balance. (5 Marks)
(b) Show the journal entries necessary to correct the following errors:-
(ii) The purchase of a machine on credit from K. Kamau for Shs.4,390 had
been completely omitted from our books. (3 Marks)
(iii) The purchase of a motor van Shs.38,000 had been entered in error in the
Motor Expenses account. (3 Marks)
(iv) A sale of Shs.221 to F. Mathenge had been entered in the books, both
debit and credit as Shs.212. (3 Marks)
(v) Commission received Shs.257 had been entered in error in the sales
account. (3 Marks)
(Total: 20 Marks)