QUESTION ONE;

Statement of affairs Disposal account

Fixed Assets Date Details f Dr Cr

Furniture 640
Current assets
Furniture 890
Stock of refreshments 80
Cash and bank 240
Depreciation 20
Insurance prepaid 15
Subscription in arrears 30
Cash 20
365
1005
Less: Current assets
Creditors 100
Rate owing 35
Subscription paid in advance 20
155
Net assets
Accumulated fund 850
850

Refreshment trading account Purchases account

Sales 1010 Details Dr Cr

Less: cost of sales Balance b/d 100
Opening stock 80 Cash 530
Purchases 480 Purchases 580
560 Balance c/d 150
Less: closing stock (120)
Total cost of sales (440 680 680
Gross profit )
Less: wages expenses 570
Next profit (120
)
450

1|Page
 Subscription account

Date Details f Dr Cr
Balance b/d 30
Arrears 20
Cash 900
Income and expenditure 910
Balance c/d 25 45
965 965

Income and Expenditure account

Income
Subscription 910
Annual dinner 250
Sales of old furniture ( 45 – 30) 15
Donation 60
Net profit 450
1615
Less: Expenditure
Wages (360 – 120) 240
Insurance 160
Rent and Rates 420
Stationery 120
Sundry expenses 65
Annual dinner expenses 130
Depreciation 178
(1323)
Surplus of income over expenditure 292

2|Page
 Balance sheet as at 31 Dec 20

Cost Dep NBV

Fixed Assets
Furniture 890 178 712
Current Assets
Stock 120
Cash and Bank 450
Insurance prepaid 10
Subscription in arrears 45
625
Less: Current liabilities
Creditors 150
Rates owing 20
Subscription in advance 25
Total current liabilities (195)
Working capital
430
1142

Financed by
Add: Accumulated fund 850

Net profit 292

1142

3|Page
 QUESTION TWO;
SKM AND JKK
Trading and Profit And Loss Account For the Year 31th December 2013
K K K
Sales 28,000
Less Sales Returns 80
27,920

Less: Cost Of Sales

Stock 3,500
Add Purchases 16,000
Carriage 60
19,560
Stock Available
60
Less: Returns 2,800
Closing Stocks 2,860
16,700
11,220
Gross Profit 20
Add Discount Received 11,2440

Less Expenses 40
Carriage In Wards 50
Bad Debts 400
Rents And Rents 1,400
Salaries 140
Insurance 3,000
Wages (2600+ 400) 550
Increases For Bidets 100
Discount Allowed 110
Officer Expenses 450
Depreciation 6,240
5,000
Total Of Expenses
Net Profit

Less Interest On Capital

300
SKM 300 600
JKK
4,400
Less Salaries 500
SKM 3,900

4|Page
Share Of Profits 1,950
1,950
SKM 3,900
JKK

CURRECT ACCOUNT CURRECT ACCOUNT

SKM JKK

DETAILS DR CR DETAILS DR CR

Balance Bd 100 Balance b/d 150

Interest In Capital 300 Interest in capital 300
Salaries 500 Profit 1950
Profit 1,950
Drawings 800 Drawing 900
Balance Cd 1,850 Balance c/d 1500
2750 2750 2400 2400
Balance Bd 1,850 Balance B 1500
b/d

5|Page
 Balance Sheet As At 31th December 2013
COST DEP VALUE
Premises 6,000 6,000
Fixtures And Fitting 4,500 450 4,050
10500 450 10,050

Current Assents
Bank 700
Daters 7,200
Closing Stocks 2,800
10,700

Less Current Abilities

Payables 5,000
Accursed 400
5,400
5,300
15,350
Financed ByCapital
SKM 6,000
JKK 6,000 12,000
Current Account Balance
SKM 1,850
IKK 1,850
3,350
15,350

6|Page
 QUESTION THREE;
SKM
Manufactured trading and profit and loss account for the year 30th December 2012
k k k
Opening stocks of raw material 34,760
Add purchases of raw material 396,300
Carriage of raw material 1,200
397,500
Total stocks of raw material available 432,260
Less closing stocks 47,290

Cost raw material consumed 384,970

Add direct cost;

Direct factory wages (198,600 + 200)

Prime costs 198,800
583,770
Add factory overheads;

Factory managers 18,600

Factory (sundry) 24,360
Depreciation factory and machinery 13,500

Add opening work in progress (1 January 2012) 56,460

640,230
Less closing work progress 4,820
645,050
Cost of production 4,670

640,380

7|Page
Sales 798,200
Less returns 6,400
791,800

Less cost of sales;

Opening of finished goods 8,300

Add production of goods completed 640,380
648,680
Purchases of finished good 11,340
660,020
Les closing of finished good 9,200
Less good for home use 600
650,220
Gross profit 141,580

Less experiences;

Salaries ( 4330 – 150 ) 4,180

Sundry 18,950
Distributions cost 23,460
20 3,480
Depreciation officer equipment ( X 17400)
100
20 1,687
Provision for debtors ( X 17400)
100 51,757
89,823
Net profit

8|Page
 SKM
BALANCE SHEET AS AT 31TH DECEMBER 2012
COST DEP VALUE
Non current assets;

Land and building 79,000 ------------ 79,000

Plants and machinery 96,000 55,500 40,500

officers equipment 17,400 94,80 7,920

Add current assets;

Bank 2,050
Raw material 47,290
Work progress 4,670
Finished goods 9,200
Debtors 82,663
Prepaid officer 150
146,023
Less current liabilities;

Creditors
Accrued 64,160
200
64,360
81,663
Financed by; 209,083

Capital
Add net profit 132,160
89,823
Less drawing ( 12,300 + 600 ) 221,983
12,900
209,083

9|Page
 QUESTION FOUR;
SKM
Trading and profit and loss and appropriation for ended 31st march 2007
Dr Cr
Sales 2000,000
Less Cost Of Sales;
80,000
Opening Stock 542,000
Purchases 622,000
122
Less Closing Stock 621,878
Cost Of Sales 1,378,122
Gross Profit

Less Expresses; 13,500

Debentures 1200
Increases In Bad Dents 200,000
Administrative Costs 61,600
Depreciation plants and machinery
276,300
Total expresses 1,101,822
Net profit before tax 62,400
Less income tax 1,039,422
Net profit before tax
6000
Dividends 24,000
Interim Paid 30,000
Ordinary( Proposed) 1,009,422
90,000
Returned Profit For The Year 1,099,422
Returned b/d
Returned Earning c/d

10 | P a g e
 SKM
Balance sheet as at 31st march 2007
COST DEP VALUE
Noncurrent assets 616,000 231,600 384,400

Currents assets
Stocks 122
Receivables 988,00
Cash at bank 82,000
180,922
565322
Total assets

Capital;
200000
Ordinary shares capital 40,000
Share premium accounts 1,099,422
Accumulated profit 1,339,422
150,000
Noncurrent assets 76,000
Current assets 62,400
Tax 30,000
Dividend ( 6000 + 24,000) 13,500
Debenture 181900
Total of liabilities 1,007,522

11 | P a g e