On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

5/11/2021

1 Comment

On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

May 20 received a cheque for sh. 90, 000 from a debtor
25 Paid telephone bills sh. 5, 000 in cash
30 Withdrew Sh. 40, 000 from bank for office use
From the above information prepare Nyaboke Trader cash book and balances it off. (4mks)

Solution

1 Comment

The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

5/11/2021

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The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

Sh.
Sales………………………………………800, 000
Purchases…………………………………420, 000
Opening stock (1.1.2010) …………90, 000
Closing stock (31.12.2010)……………50, 000
Debtors……………………………………130, 000
Creditors…………………………………90, 000

Calculate (4mks)

(a) Margin

(b) Current ratio

(c) Rate of turnover

0 Comments

On 1st January 2011 Mulei Traders had 180,000 cash in hand and a bank credit balance of sh 57,500. during the month the following transactions took place

24/9/2021

0 Comments

On 1^st January 2011 Mulei Traders had 180,000 cash in hand and a bank credit balance of sh 57,500. during the month the following transactions took place (10mks)

3^rd cash sales sh 21,800

4^th A debtor settled his account of sh 90,000 by cheque

10^th Paid salaries sh 40,000 in cash

12^th Took cash sh 3500 to settle a personal debt

23^rd Received a cheque shs 8460 from Nganda wholesalers after deducting 6% cash discount

24^th Deposited sh 10,000 in the bank from office cash

25^th Purchased stock worth sh 8950 on credit from Ngumo distributors

26^th Cash sales banked directly sh 38,000

27^th A cheque received on 4^th from debtor was dishonoured. The bank charged him sh 2500

29^th Settled creditors account sh 6000 by cheque less 3% cash discount

31^st Banked all cash except sh 40,000

Required:

Prepare a three column cash book dully balanced (10mks)

On 1st January 2011 Mulei Traders had 180,000 cash in hand and a bank credit balance of sh 57,500. during the month the following transactions took place

0 Comments

Kirui Traders had the following balances as at 31st Dec 2010

19/9/2021

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Kirui Traders had the following balances as at 31st Dec 2010

	sh
Opening stock	800,000
Closing stock	1,000,000
Sales	3,250,000

Given that the rate of stock turnover is 3;

a) Calculate the cost of goods sold (2mks)

b) Calculate the gross profit (2mks)

0 Comments

On 1st January 2011 , Jumo Traders had shs 22,500 in cash and shs 250,000 at bank.During the month, the following transactions took place:

21/12/2020

0 Comments

On 1st January 2011 , Jumo Traders had shs 22,500 in cash and shs 250,000 at bank.During the month, the following transactions took place:

Prepare a duly balanced three column cash book. (10 marks)

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Below are some entries in the cash book of Romano Traders for the month of July 2010.

21/12/2020

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Below are some entries in the cash book of Romano Traders for the month of July 2010.

State the meaning of the following entries:
(a) July 1, 2010 Balance b/d, bank column, shs 100,000
(b) July 6, 2010 cash shs 20,000 and bank shs 20,000
(c) July 28, 2010 debtors shs 20,000
(d) July 31, 2010 Balance c/d shs 10,000

Meaning of the entries:

Bank overdraft.
Contra entry.
Cash received from debtor.
Closing cash in hand.

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On 1st January 2007, Muthoni Traders Cash Book showed a credit balance of Ksh 150,000 at the bank and a debit balance of Ksh 25,250 in hand. During the month, the following transactions took place:

17/12/2020

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On 1st January 2007, Muthoni Traders Cash Book showed a credit balance of Ksh 150,000 at the bank and a debit balance of Ksh 25,250 in hand. During the month, the following transactions took place:

January 5: Made cash sales for Ksh 21,500
January 16: Received a cheque for Ksh 360,000 from a debtor.
January 28: Paid a creditor Ksh.100.000; partly by a cheque of Ksh 80,000 and the
balance in cash.

Prepare a Two-column Cash Book for the month. (5 marks)

0 Comments

On first January 2012, Ndovu Traders had shs 30,000 in cash and shs 75000 at the bank. During the month, the following transactions took place:

17/12/2020

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a) On first January 2012, Ndovu Traders had shs 30,000 in cash and shs 75000 at the bank. During the month, the following transactions took place:

January 2nd:
Bought goods in cash worth shs 15,500
5th:
Received cash from Chui shs 23,750 after allowing 5% cash discount.
8th:
Withdrew shs 8,900 from the bank for personal use.
11th:
Maro, a debtor settled her account of shs 16,800 by a cheque of shs 16,000.
15th:
Sales amounted to shs 24,250 in cash.
17th:
Paid Furaha traders shs 29,100 in cash in full settlement of their account less 3% cash discount.
20th:
Withdrew shs 15,000 from the bank for business use.
22nd:
Koko a debtor, settled her account of shs 40,000 by cheque less 2.5% cash discount.
25th:
Paid wages shs 21 ,000 in cash.

Required:
Prepare a duly balanced three column cash book. (12 marks)

Expected Response

On first January 2012, Ndovu Traders had shs 30,000 in cash and shs 75000 at the bank. During the month, the following transactions took place:

0 Comments

The following balances were extracted from the books of Kl00 Traders for the year ended 30th June 2008.

16/12/2020

1 Comment

The following balances were extracted from the books of Kl00 Traders for the year ended 30th June 2008.

Additional information:
(i) Stock on 30th June 2008 was valued at shs 120,000.
Prepare:
(i) Trading, Profit and Loss accounts for the year ended 30th June 2008. (9 marks)
(ii) Balance sheet as at 30th June 2008. (5 marks)

1 Comment

Give two reasons why a three column cashbook is used both as a journal and a ledger.

15/12/2020

0 Comments

Give two reasons why a three column cashbook is used both as a journal and a ledger.

Reasons why a three column cash book is used both as a journal and a ledger:
Cash and bank columns in the cash book act as a ledger and total balances are used to prepare trial balance like other ledger accounts.
Both discount allowed and discount received columns act as a journal and their total balances are transferred to the ledger.
Cash transactions are entered in the three column cash book directly as they occur.

0 Comments

Kazim maintains a petty cashbook on a weekly interest of Kshs 13,000 on 1st April 2007 the cash balance was Kshs 2,570, During the week of April, the following transactions took place

14/12/2020

0 Comments

Kazim maintains a petty cashbook on a weekly interest of Kshs 13,000 on 1st April 2007 the cash balance was Kshs 2,570, During the week of April, the following transactions took place

2007

April 2 Received reimbursement from the main cashier
April 3 Paid Kshs 3,070 for cleaning materials
April 4 Paid Kshs 2,000 bus fare
April 6 Bought stationery worth Kshs 2,200
Prepare a petty cashbook to record the above transactions using cleaning stationery and bus fare columns

0 Comments

The following is a format of the debit side of a three-column cash-book:

14/12/2020

0 Comments

The following is a format of the debit side of a three-column cash-book:

Name the columns labelled V, W, X and Y. (4 marks)

Expected Response

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On 1 September 2006, Igonji had Sh55 000 in hand and Sh 250 000 at bank.During the month, the following transactions took place:

13/12/2020

0 Comments

On 1 September 2006, Igonji had Sh55 000 in hand and Sh 250 000 at bank.During the month, the following transactions took place:

September 2 Cash sales banked Sh 35260
3 Bought ribbons in cash Sh 4 500
8 Paid Wangila, a creditor Sh 94 000 by cheque in full settlement of’ his account after deducting 6% cash discount
12 Received a cheque for Sh 58 800 from Wetu after allowing her a cash discount of Sh 1 200
15 Paid salaries Sh 34 000 in cash
25 Withdrew Sh 50 000 from bank for office use
28 Anyango, a debtor paid her account of Sh 75 000 by cheque less 10% cash discount.
30 Deposited all the cash into bank except Sh 13 700

Prepare a three column cash book arid balance it off. (10 marks)

September 2 Cash sales banked Sh 35260 3 Bought ribbons in cash Sh 4 500 8 Paid Wangila, a creditor Sh 94 000 by cheque in full settlement of’ his account after deducting 6% cash discount 12 Received a cheque for Sh 58 800 from Wetu after allowing her a cash discount of Sh 1 200 15 Paid salaries Sh 34 000 in cash 25 Withdrew Sh 50 000 from bank for office use 28 Anyango, a debtor paid her account of Sh 75 000 by cheque less 10% cash discount. 30 Deposited all the cash into bank except Sh 13 700 Prepare a three column cash book arid balance it off. (10 marks)

On 1 September 2006, Igonji had Sh55 000 in hand and Sh 250 000 at bank.During the month, the following transactions took place:

0 Comments

Outline the meaning of the following terms as used in accounting:(a) Contra entry ,(b) Cash discount

13/12/2020

0 Comments

Outline the meaning of the following terms as used in accounting: (a) Contra entry , (b) Cash discount

(a) Contra entry:- This is a transaction affecting both sides of a two/three column cash book simultaneously. It is indicated by letter ‘C'.
(b) Cash discount:- This is a reduction/allowance given to a buyer by the setter for making prompt payment.

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On 1 January 2006, Mzalendo Traders sh.180000 in cash and sh.170000 at bank.During the month, the following transactions took place:

11/12/2020

0 Comments

On 1 January 2006, Mzalendo Traders sh.180000 in cash and sh.170000 at bank.During the month, the following transactions took place:

2006
January 10 paid ABM Traders sh.25, 000 by cheque less sh.1000 Cash discount.
16 Sold goods for sh. 14,000 cash, less 5% discount
31 Banked all the cash except sh.5200
Enter the above transactions in cash book extract given below and balance it off.(5mks)

0 Comments

The following information was extracted from the books of Mamboleo Traders in the month of September, 2014.

11/12/2020

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The following information was extracted from the books of Mamboleo Traders in the month of September, 2014.

September 1 Had cash in hand, Shs 15,500 and a bank overdraft of Shs 9,700.
September 3 Bought goods for sale Shs 12,300 on credit.
September 5 Sold good in cash Shs 8,500.
September 9 Sold goods on credit Shs 10,000.
September 12 Received a cheque of Shs 9,000 from a debtor.
September 15 Paid a creditor Shs 10,000 in cash.
September 17 Paid wages Shs 2,600 in cash.
September 19 Received a cheque Shs 23,400 from Samson for goods sold in January.
September 20 Received Shs 6,700 from a debtor in cash.
September 23 Withdrew Shs 7,700 from the bank for office use.
September 24 Paid electricity bills by cheque Shs 1,200.
September 25 Received a cheque of Shs 11,500 from a debtor.
September 26 Made cash sales of Shs 12,800.
September 27 Purchased goods worth Shs 8,950 in cash.
September 28 Deposited personal cash Shs 3,500 into the business account.
September 30 Paid water bills by cheque Shs 2,800.

Required:
Prepare a two column cash book. (10 marks)

Expected Response

The following information was extracted from the books of Mamboleo Traders in the month of September, 2014.

0 Comments

On 1st January 2015, Ndovu Traders had Ksh 30,000 in cash and Ksh 75,000 at the bank.

5/12/2020

0 Comments

On 1st January 2015, Ndovu Traders had Ksh 30,000 in cash and Ksh 75,000 at the bank.
During the month, the following transactions took place:

January 2: Bought goods in cash worth Ksh 15,500.
5: Received cash from Chui Ksh 23,750 after allowing 5% cash discount.
8: Withdrew Ksh 8,900 from the bank for personal use.
11: Maro, a debtor settled her account of Ksh 16,800 by a cheque of Ksh 16,000.
15: Sales amounted to Ksh 24,250 in cash.
17: Paid Furaha traders Ksh 29,100 in cash in full settlement of their account less 3% cash discount.
20: Withdrew Ksh 15,000 from the bank for business use.
22: Koko a debtor settled her account of Ksh 40,000 by cheque less 2.5% cash discount.
25: Paid wages Ksh 21,000 cash

Required: Prepare a duly balanced three column cash book. (12 marks)

Expected Response

0 Comments

On 1st September 2015, Gondi had Ksh 55,000 in hand and Ksh 250,000 at bank. During the month, the following transactions took place:

5/12/2020

0 Comments

On 1st September 2015, Gondi had Ksh 55,000 in hand and Ksh 250,000 at bank. During the month, the following transactions took place:

September 2 Cash sales banked Ksh 35,260
3 Bought ribbons in cash Ksh 4,500
8 Paid Wangila, a creditor Ksh 94,000 by cheque in full settlement
of his account after deducting 6% cash discount
12 Received a cheque for Ksh 58,800 from Wetu after allowing her a
cash discount of Ksh 1,200
15 Paid salaries Ksh 34,000 in cash
25 Withdrew Ksh 50,000 from bankfor office use
28 Anyango, a debtor paid her account of Ksh 75,000 by cheque less
10%- cash discount
30 Deposited all the cash into bank except Ksh 13,700

Required: Prepare a three column cash book and balance it off. (10 marks)

Expected Response

0 Comments

The following transactions relate to Dagoreti Enterprises for the month of March 2016.

29/11/2020

0 Comments

The following transactions relate to Dagoreti Enterprises for the month of March 2016

March 1:
Started business with Ksh 15,300 in cash and a bank overdraft of Ksh 8,200
March 3:
Made cash purchases of Ksh 10,200 in cash
March 4:
Harrison, a debtor settled his account of Ksh 18,000 by issuing a cheque of Ksh 13,400 and the rest by cash
March 5:
Paid wages by cheque, Ksh 5,000
March 6:
Received a cheque of Ksh 9,310 from Chebet
March 7:
Received cash, Ksh 7,720 from Otieno
March 8:
Paid Hassan Ksh5.450 in cash
March 9:
Deposited Ksh6.000 from the office into the business bank account
March 10:
Paid insurance Ksh 3,700 by cheque
March 11:
Paid Ksh 3,900 for repairs in cash
March 12:
Received Ksh 8,570 in cash from Mwende
March 13:
Received a cheque of Ksh 11,200 from Makokha
March 14:
Paid water bill Ksh 2,590 by cheque
March 15:
Paid rent Ksh 6,500 by cheque
March 29:
Took all the cash that was in the office and deposited it into the business bank account

Required: Prepare a two column cash book for the month of March 2016. (10 marks)

Extract

The following transactions relate to Dagoreti Enterprises for the month of March 2016

Expected Response

0 Comments

Use the transactions given below to prepare Jawabu Traders two column cash book for the month of February 2015. (10 marks)

24/11/2020

0 Comments

1st Feb.Had Sh 12,500 cash and a bank overdraft of Sh 5,000
2nd Feb.Used cash to pay for water bill Sh 800, electricity Sh 1,100 and wages Sh4,700.
3rd Feb.Received a cheque of Sh 18,900 from a debtor
5th Feb.Sold goods worth Sh 7,150 in cash.
7th Feb.Paid for goods bought for resale worth Sh 6,400 by cheque.
9th Feb.Received a cheque of Sh 13,000 from the co-operative society as earnings from dividends.
10th Feb.Withdrew Sh 2,500 from the bank for family use.
13th Feb.Received Sh 15,900 in cash from a debtor.
15th Feb.Deposited Sh9,500 from the office into the business bank account.
17th Feb. Paid a creditor by cheque Sh4,390.
27th Feb.Used all the money in the bank to purchase furniture leaving only a balance of Sh2,010.

Expected Response

0 Comments

State four reasons for maintaining a cash book in a business enterprise. (4 marks)

23/11/2020

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Reasons for maintaining a cash book in a business enterprise

Reasons for maintaining a cash book in a business enterprise include:

To reduce the number of entries made into the general ledger.
To easily avail cash balances/show cash balances at a glance.
To enhance specialization in book keeping by allocating different ledgers to different workers.
To easily monitor the cash inflow and outflow.
To show the sources of funds into the business.
To show the expenditure in the business.

0 Comments

​On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

Solution

​The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

​Calculate (4mks)

(a) Margin

​(b) Current ratio

(c) Rate of turnover ​

On 1st January 2011 Mulei Traders had 180,000 cash in hand and a bank credit balance of sh 57,500. during the month the following transactions took place (10mks)

Required:

Prepare a three column cash book dully balanced (10mks)

sh

a) Calculate the cost of goods sold (2mks)

b) Calculate the gross profit (2mks)

On 1st January 2011 , Jumo Traders had shs 22,500 in cash and shs 250,000 at bank.During the month, the following transactions took place:

Below are some entries in the cash book of Romano Traders for the month of July 2010.

On 1st January 2007, Muthoni Traders Cash Book showed a credit balance of Ksh 150,000 at the bank and a debit balance of Ksh 25,250 in hand. During the month, the following transactions took place:

Expected Response

The following balances were extracted from the books of Kl00 Traders for the year ended 30th June 2008.

Give two reasons why a three column cashbook is used both as a journal and a ledger.

Kazim maintains a petty cashbook on a weekly interest of Kshs 13,000 on 1st April 2007 the cash balance was Kshs 2,570, During the week of April, the following transactions took place

Expected Response

On 1 September 2006, Igonji had Sh55 000 in hand and Sh 250 000 at bank.During the month, the following transactions took place:

Outline the meaning of the following terms as used in accounting: (a) Contra entry , (b) Cash discount

On 1 January 2006, Mzalendo Traders sh.180000 in cash and sh.170000 at bank.During the month, the following transactions took place:

Expected Response

Expected Response

Expected Response

Expected Response

Expected Response

Reasons for maintaining a cash book in a business enterprise

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On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

Calculate (4mks)

(b) Current ratio

(c) Rate of turnover

On 1^st January 2011 Mulei Traders had 180,000 cash in hand and a bank credit balance of sh 57,500. during the month the following transactions took place (10mks)