PROJECTMANAGEMENTQUESTI

ONS

1.Youareagener
almanagerofabaker
ywhi
chi
soper
ati
ngasapubl
i
cli
mit
ed
l
iabi
l
ity
.

a)Wr
it
eanot
icei
nvi
ti
ngal
lshar
ehol
der
stoanannual
gener
almeet
ing.

b)Pr
epar
eanagendaf
ort
hemeet
ing

c)Pr
esentanor
gani
zat
ional
planf
ort
hebaker
y

d)Desi
gnaf
li
ert
obei
ssuedt
oyourpot
ent
ial
cust
omer
s

2.Youareoper
ati
ngar api
dlyexpandi
nglar
gescal
eretai
lstat
ioner
ybusi
ness.y
ou
wouldli
ket
ostartanewbr anchandhaveot
hersuppli
erssoastomeetthe
i
ncreasi
ngdemand.

a)Wr
it
eal
ett
erofi
nqui
ryt
ooneofy
oursuppl
i
ers.

b) Dev
elopabudgetf
orpr
eoper
ati
ngexpensesf
ort
henewbr
anch.

c)Pr
epar
eanact
ionpl
anf
ort
henewbr
anch.

d)Dr
aftr
ulesandr
egul
ati
onst
oensur
epr
operconductofwor
ker
s.

3.Youar eoper
atingabusi
nesswhichi
mpor
tselect
ri
cappl
iances.I
twasrepor
ted
thatyourworkersl
ackgoodcust
omercar
e,nowonderyouhav er
eal
iseda
gradualdecl
i
nei nsal
es.

a.Dev
elopar
ootcauseanal
ysi
sfort
hedecl
i
ningsal
es.

b.Pr
epar
eagui
del
i
nest
oensur
eimpor
tat
ionofqual
i
typr
oduct
s.

c.Pr
esentamar
ketf
lowchar
tfory
ourbusi
ness.

d.Dev
elopaconsumersat
isf
act
ionsur
veyt
ool
tobeusedbyt
hebusi
ness.

4.Youhaveestabli
shedajui
cepr
ocessingpl
anti
nyourhomearea.Thedemandis
rapi
dlyi
ncr
easingandyouaret
orecruitmor
eworker
stoatt
endtot hei
ncr
easi
ng
numberofthecustomers.

a.Dev
elopami
ssi
onst
atementandobj
ect
ivesf
ory
ourbusi
ness

b.Desi
gnadai
l
yti
meschedul
etobeusedi
nthebusi
ness.
 c.Pr
epar
eapr
ogr
ammef
orconduct
ingi
nter
views.

d.Pr
epar
ecashr
ecei
ptf
orusei
nthebusi
ness.

5.Youpl
ant
ost
artapl
ast
icandwast
emanagementpr
ojecti
nyourcommuni
ty.

a)St
atet
he(i
)vi
sion

(i
i
)mi
ssi
on

(
ii
i)obj
ect
ives

b)Pr
epar
eaGEPI
Cst
ruct
ureAdv
ocacyoft
hecommuni
ty

c)Drawaprogrammef ort
heof
fi
cial
launchoft
hepr
ojectbyt
hedi
str
ict
envi
ronmentoff
ice.

d)For
mul
ateguidel
i
nesf
orensur
ingsaf
etyandsecur
it
yofy
ourempl
oyees
att
heworkpace.

6.Youhav
edeci
dedt
ost
artamedi
um scal
emai
zemi
l
li
ngbusi
nessi
nyourv
il
lage.

a)Pr
epar
eguidel
i
nesthatyouwil
lfol
l
owt
oensur
egenderbal
anceof
empl
oyeesi
nthebusiness.

b)Whatmeasureswil
lyouputinpl
acetomaint
ainacompet
it
iveedgeoft
he
busi
nessov
erothersimi
larbusi
nesses?

c)I
denti
fyotherbusi
nessoppor
tuni
ti
eswhi
chmayar
isef
rom t
heexi
stence
ofyourbusi
ness.

d)Wri
teinst
ruct
ionst
hatyourempl
oyeesshoul
dobser
vef
orpr
oper
mai
ntenanceofthemil
l
ingmachine.

7.Youi
ntendt
ost
artaj
uicepr
ocessi
ngpl
anti
nyourhomear
ea,

a)Pr
epar
ethepr
oduct
ionpl
anf
ory
ourbusi
ness.

b)Est
imat
ethest
artupexpensesf
ory
ourbusi
ness.

c)Pl
aceanor
dert
othesuppl
i
ersoff
rui
tst
othebusi
ness.

d)Draftr
ulesthatyourempl
oyeeswi
l
lfol
l
owf
oref
fect
ivet
imemanagement
i
nt hebusiness.

8.Youhav ebeenhi
redasahumanr esour
cemanagerofDAKSent
erpr
iseswhi
chi
s
exper
ienci
ngahighlabourt
urnov
er.
 a)Draf
taquestionnai
ret
ofi
ndoutt
hecausesoft
hehi
ghl
abourt
urnov
eri
n
theent
erpr
ise.

b)Pr
epar
eaj
obspeci
fi
cat
ionf
oranaccount
antoft
hebusi
ness.

c)Adv
isemanagementonst
rat
egi
est
hatshoul
dbeadopt
edt
oimpr
ovet
he
wel
far
eoftheemploy
ees.

d)Designapr
oceduret
hatshoul
dbefoll
owedbymanagementwhen
handli
ngi
ndi
scipl
i
neemployeesoft
heemployees.

9.Youhav eobtainedabankl
oanofsi
xtymill
ionshill
ingsforexpandingyour
carpentr
ywor kshops,
thel
oani
spayableineightequalmont hl
yinstal
l
mentsat
theinter
estr
at eof4%permont
honr educi
ngbal ance.

a.Pr
epar
ethel
oanr
epay
abl
eschedul
e

b.For
mul
ategui
del
i
nesf
orpr
operl
oanmanagement

c.Dev
elopapar
tner
shi
pdeedf
ory
ourbusi
ness

d.Expl
aint
hebusi
nesset
hicst
obeobser
vedbybusi
nesst
owar
ds,

(i
)Customer s
(
ii
)Employees
10.
Youar
einvol
vedinthepr oducti
onofhoneyiny
ourhometown.
a)Wr i
teaquotationtooneofy ourcust
omerswhohaswri
tt
enani
nqui
ryt
o
establ
ishabouty ourproduct
.

b)Desi
gnapr
ogr
ammet
opr
omot
eyourpr
oduct
.

c)Prepar
eaprogr
ammet obef
oll
owedwheni
nsur
ingy
ourbusi
nessi
none
ofthei
nsur
ancecompani
es.

d)Dev
elopamar
ket
ingpl
anf
ory
ourbusi
ness.

11.
Youhav
eest
abl
i
shedaj
uicepr
ocessi
ngpl
anti
nyourhomear
ea.

a)Dev
elopav
isi
onst
atement

b)Desi
gnapr
ogr
ammef
orconduct
ingi
nter
views

c)Pr
epar
epol
i
cygui
del
i
nest
oensur
epr
operi
nvent
orymanagement

d)Wr
it
eanappoi
ntmentl
ett
erf
ort
henewl
yrecr
uit
edmar
krt
ingmanager
.

e)Showt
hepl
antl
ayoutofy
ourbusi
ness.
12.
Youareoperatingamedi cal
cent
erasaprof
itmaki
ngent
erpr
isewi
thbr
anchesi
n
majortowns.Yourresearchhaspr
ovedt
hatyourcommuni
tyhashada
prol
ongedmal ari
aoutbreak.

a)Desi
gnamedi
cal
for
mforpat
ient
s

b)Wri
teacir
cul
artodoctor
sinchargeoftheot
herbr
anchesout
li
ning
measur
estopreventout
breakofmalar
ia.

c)Dr
awar
ootcauseanal
ysi
stoest
abl
i
sht
her
ootcauseofmal
ari
a.

d)Prepareaprogrammef
oraonedayt
rai
ningandsensi
ti
zat
ionwor
kshop
fortheworker
s.

13.
Yourbaker
ybusinessexper
iencingdecl
i
ningsal
es.Youar
eint
hepr
ocessofr
e-
act
ivat
ingt
hegloryofthebusiness.

a)Desi
gnacust
omersat
isf
act
ionsur
veyquest
ionnai
ref
orusebyy
our
busi
ness.

b)Per
for
m ar
ootcauseanal
ysi
sont
hedecl
i
ningsal
es.

c)Dr
awat
rai
ningpr
ogr
ammef
ort
henewsal
esper
sonsf
ory
ourbusi
ness.

d)Pr
epar
eapr
ogr
ammef
orcar
ryi
ngoutper
sonal
sel
l
ing.

e)Redr
aftt
hemar
ket
ingpl
anoft
hebusi
ness.

f
) Dr
aftaoneweekpr
omot
ional
progr
ammef
ory
ourbusi
ness.

14.
Youareoperat
ingal
eat
hert
anni
ngf
act
ory
.Thewor
ker
shav
ebecome
indi
sci
pli
ne.

a)Pr
epar
etheadmi
nist
rat
ivepl
anf
ory
ourcompany
.

b)Wri
teacodeofconductf
ort
hest
afft
oobser
vesoast
opr
omot
e
di
sci
pli
ne.

c)Pr
epar
eapr
ogr
ammef
ormi
nimi
zi
ngr
isksi
nyourbusi
ness.

d)Pr
epar
ethef
inanci
alpl
anf
ory
ourf
act
ory
.

15.
Youareapar
tneri
nar
api
dlyexpandi
ngbusi
nessdael
i
ngi
nthepr
oduct
ionof
fur
nit
ure.

Devel
opacapital
expendi
tur
ebudgett
obef
oll
owedi
nincr
easi
ngi
nvest
menti
n
thebusi
ness.
 a)Pr
epar
eapr
ogr
ammef
ort
aki
ngani
nsur
ancepol
i
cy.

b)Dev
elopagui
del
i
nesf
orpr
omot
inggenderequal
i
ty.

c)Pr
epar
ethepr
oduct
ionpl
anf
ory
ourbusi
ness.

d)Desi
gnaf
li
ert
opr
omot
ingy
ourpr
oduct
s.

16.
Giv
ent hatyoursociet
yisfacedwithanumberofPEDVU(pov er
tyEnvi
ronment
Degradati
on,Disease,Vi
olence,
andUneducated)probl
emsandyouhavedeci
ded
tostar
tasoci alent
erpri
setoaddressasoci
alentrepr
eneur
.

a)Wr
it
eav
isi
onandmi
ssi
onst
atementf
ory
ourpr
oject
.

b)Devel
opaGEPICadv
ocacyappeal
forenl
i
sti
ngmember
sandsuppor
tof
thecommuni
ty.

c)Wri
teal
etterr
equesti
ngf orf
inanci
alsuppor
tfr
om t
heASHOKA
f
oundat
ionforyourcause.

d)Pr
epar
eapr
ogr
ammef
orbecomi
ngasoci
alet
repr
eneur

17.
Youar
eoper
ati
ngacosmet
icpr
oduci
ngbusi
ness.

a)Pr
epar
eapr
ogr
ammef
orconduct
ingi
nter
viewsf
ofry
oursal
esper
sons.

b)Whatfact
orswoul
dyouconsi
derwhendr
aft
ingt
hef
inanci
alpl
anf
ory
our
busi
ness.

c)Pr
epar
eapr
ogr
ammef
ort
aki
ngani
nsur
ancepol
i
cy.

d)Chooseamedi
um ofadv
ertanddesi
gni
tfory
ourbusi
ness.

e)Pr
epar
eamar
ket
ingpl
anf
ory
ourbusi
ness.

f
) Desi
gnal
abel
tobepl
acedont
hepackagi
ngmat
eri
alf
ory
ourpr
oduct
s.

18.
Youownar est
aur
antspeciali
zi
nginal
ocal
dishes.Sal
espromoti
onhasbeen
yourstr
ategytoat
tractmorecustomer
sandthebusinessi
sinthepr
ocessof
expandi
ngi t
shumanr easons.

a)For
mul
ateast
atementofv
isi
onandmi
ssi
onf
ort
her
est
aur
ant
.

b)Chooseamedium andpr
epar
eanadv
ert
isi
ngmessagef
orpr
omot
ing
busi
nesspr
oduct
s.

c)Desi
gnat
rai
ningpr
ogr
ammef
ort
hewor
ker
s.
 d)Devel
opgui
del
inesf
ort
heempl
oyeest
oobser
vet
opr
omot
egood
cust
omercar
e.

19.
Youareoperati
ngabusi nesswhichdealsinasaleofcosmeti
csandithasbeen
repor
tedthatworkershaveexhibit
edinsuf
fi
cientcust
omercare.Nowonderyou
havenotedgradualdecl
ineinsales.

a)Dev
elopar
ootcauseanal
ysi
sfort
hedecl
i
ningsal
es

b)Desi
gnacust
omersat
isf
act
ionsur
veyt
ool
tobeusedbyt
hebusi
ness.

c)Pr
esentamar
ketf
lowchar
tfory
ourbusi
ness.

d)Pr
epar
eapr
ogr
ammef
orcar
ri
yngoutper
sonal
sel
l
ing.

20.
Youareaprocurementmanagerofabuscompanywhichi
sinser
ious
competi
ti
onwithmanyotherbuscompaniesi
nyourcount
ry.

a)Wr
it
eapur
chaseor
derf
orhowbr
andnewbusesf
rom anexpor
teri
njapan.

b)Pr
epar
eat
rav
elschedul
efory
ourf
ir
m.

c)Wri
teanappreci
ati
onl
ett
ert
oyourbestdr
ivert
obegi
vent
ohi
m att
he
endofyearpar
ty.

d)For
mulat
eajobspeci
fi
cat
iondocumentf
ort
hepr
oposednewbus
mechani
c.

21.
Youhav ejustestabl
ishedadetergentmakinginyourhomear
eadeal
ingwi
tht
he
producti
onofliquidsoap,handwashsoapet c.youint
endtol
aunchy
our
businesstocreatecommuni tyawareness.

a)Wri
teal
ett
erseeki
ngper
missi
onf
rom y
ourar
eal
ocal
counci
lchai
rper
son
t
oholdt
helaunch.

b)Pr
epar
eaonedayl
aunchi
ngpr
ogr
ammef
ory
ourbusi
ness.

c)Desi
gnaf
li
ert
obei
ssuedt
opot
ent
ial
cust
omer
s.

d)Pr
epar
eamar
ket
ingpl
anf
ory
ourbusi
nesspr
oduct
.

22.
Havi
ngmadeapartner
shi
pwithyourclassmat
esaf
terS.
6youhopet
opl
ant
o
vent
urei
ntoacosmeti
csel
li
ngbusiness.

a)Expl
aint
hei
temsy
ouwoul
dincl
udei
nyourpar
tner
shi
pdeed.

b)Dev
elopadai
l
ydi
str
ibut
ionschedul
efort
hewor
ker
stof
oll
ow.
 c)Pr
epar
eapay
rol
lfort
owor
ker
siny
ourbusi
ness.

d)Expl
aint
hebenef
it
sofy
ourbusi
nessi
nthecommuni
ty.

23.
Youareoper
ati
ngasmal
lscal
epoul
tr
yfar
m empl
oyi
ngy
ourpeopl
einy
ourhome
area.

a.Pr
epar
eanor
gani
zat
ionpl
anf
ory
ourpr
oject
.

b.Dr
aftaqual
i
typol
i
cyf
ory
ourpr
oject
.

c.For
mul
ateapol
i
cyt
obef
oll
owedwhensel
l
inggoodsoncr
edi
t.

d.Wr
it
eapr
icel
i
stf
ort
hebusi
ness.

24.
Youownasmall
scalei
ndustr
ythati
sexper
ienci
ngcont
inuousmachi
nebr
eak
downandi
ncr
easingr
ateofacci
dent
s.

a)Wr
it
eanexecut
ivesummar
yfory
ourbusi
ness.

b)Pr
epar
eapr
ogr
ammef
orunder
taki
ngi
nsur
anceagai
nstbusi
nessr
isks.

c)Writ
eanoti
ceinvi
ti
ngal
lwor
ker
stoaonedaysensi
ti
zat
ionwor
kshop
aboutr
iskmanagement
.

d)Dr
aftgui
del
i
nest
oensur
epr
opermachi
nehandl
i
ng.

25.
Youownamai zemili
ngpl antandyouhavenotedwit
hgreatconcerntheneedto
stockmorerawmateri
als.Duet oi
nadequatef
undsyouhavedecidedt oacqui
re
aloanofshs10,
000,
000pay ablei
nyourequali
nst
all
mentataninterestr
ateof
5%permonthonreducingbal anci
ngmethod.

a)Pr
epar
eapr
ogr
ammef
orpur
chasi
ngr
awmat
eri
alsf
ort
hebusi
ness.

b)Dr
aftawor
kingbudgetf
ort
hebusi
ness.

c)Prepareguidel
i
nest
oensur
epr
opermanagementoft
hel
oani
nthe
business.

d)Desi
gnacashpay
mentv
ouchert
obeusedi
nthebusi
ness.

26.
Youarethemarket
ingmanagerofabaker
ypr
oduci
ngav
ari
etyofbakedi
temsi
n
yourhomearea.

a)Desi
gnasi
gnpostf
ory
ourbaker
y.

b)Desi
gnaf
li
ert
obei
ssuedt
othepot
ent
ial
cust
omer
s.
 c)Pr
epar
eamar
ket
ingpl
anf
ort
hebusi
ness.

d)Desi
gnacust
omersati
sfact
ionsur
veytool
tobeusedt
ogetf
eedback
fr
om cust
omer
saboutyourbusi
ness.

27.
Youhav
eabeekeepi
ngpr
ojecti
nyourhomear
ewhi
chy
ouwoul
dli
ket
olaunch.

a)Writ
ealet
tertot
hepol
i
cest
ati
oner
yseeki
ngper
missi
ont
olaunchy
our
busi
nessproj
ect
.

b)Pr
epar
eapr
ogr
ammef
orl
aunchi
ngy
ourpr
oject
.

c)Wr
it
eachequei
npay
mentt
ooneofy
ourser
vicepr
ovi
der
.

d)Desi
gnanewspaperadv
ertf
ory
ourbusi
ness.

28.
Youhav eaccumulat
edfundst
ooperat
eajuicepr
ocessi
ngplanti
nyourhome
areaandy ouaretor
ecr
uitwor
ker
s.Prepar
eanactionpl
anforyourj
uice
processi
ngplant.

a)Pr
epar
eapr
oduct
ionpl
anf
ory
ourbusi
ness.

b)Pr
epar
epr
oduct
ionpl
anf
ory
ourbusi
ness.

c)Desi
gnast
ockr
equi
sit
ionf
orm obeusedi
nyourbusi
ness.

d)Dev
elopguidel
i
nest
oensur
epr
opercodeofconductofwor
ker
satt
he
wor
kplace

29.
Youpl
ant
oest
abl
i
shamoneyl
endi
ngpr
ojecti
nyorhomear
ea.

a)Prepareareportabouttheoper
ati
onoft
hebusi
nesst
haty
ouwi
l
lreadat
thelaunchoftheproject
.

b)Wri
tealett
ertothedistr
ictt
radel
i
censi
ngaut
hor
it
yforper
missi
ont
o
r
egi
steryourbusiness.

c)Desi
gnasi
gnpostf
ory
ourbusi
nesss.

d)Dr
awapr
ogr
ammef
ort
hel
aunchoft
hepr
oject
.

30.
Youpl
ant
oest
abl
i
shagr
oundnutmi
l
li
ngpr
ojectdur
ingy
ourseni
orsi
xvacat
ion.

a.I
dent
if
ythepr
e-oper
ati
ngexpensesf
ory
ourpr
oject

b.Youintendt
ouseshs2, 000,
000forpr
oduct
ionofy
ourpr
oduct
s.pr
epar
e
aproject
edproduct
ioncoststat
ement.
 c.Prepareguidel
i
neswhi
chy
ouwi
l
luset
osel
ectasuppl
i
erofmat
eri
alsf
or
theproject
.

d.For
mul
ater
ulesf
ormi
nimi
zi
ngpr
oduct
ioncost
soft
hepr
oject
.

31.
Yourfi
shf ar
mingbusi
nesshasexpandedandy
oupl
ant
orecr
uitmor
e
employees.

a)I
dent
if
ythesour
cesofr
ecr
uit
ingf
ory
ourempl
oyees.

b)Pr
epar
eani
nduct
ionpr
ogr
ammef
ort
henewempl
oyees.

c)Desi
gnapol
i
cyf
ort
her
emuner
ati
onst
ruct
ureofy
ourempl
oyees.

d)Dr
aftst
rat
egi
esf
orr
etent
ionoft
heempl
oyees.

32.
Youhaveest
abl
ishedabusinessdeal
i
nginafar
m machiner
yandequipment
.
Manyfar
mershaveapproachedyoutopur
chasethei
temsoncredi
t.

a)Designacl
ienti
nfor
mati
onfor
mtobef
il
ledbyf
armer
swhowantt
o
purchasei
temsoncredi
t.

b)Wri
tet
heter
msandcondi
ti
onst
obei
ncl
udedi
nthecr
edi
tpur
chase
agr
eement
.

c)Pr
epareapri
cecur
rentf
oracust
omerwhoi
sinqui
ri
ngabouty
our
pr
oducts.

d)Dr
aftadebt
or’
spay
mentv
oucher
.

33.
Youar
ethev
isi
onbear
erandf
ounderoff
abr
icat
ionuni
tinabusyar
ea.

a)Const
ructt
hebusi
nesssi
tepl
an.

b)For
mulatepol
i
cygui
del
i
nesf
ori
nsur
ingqual
i
typr
oduct
ioni
nyour
ent
erpr
ise.

c)Pr
epar
eapur
chaseor
derf
oranewmachi
ne

d)Prepar
eaj
obadv
ert
isementf
ort
hepostoft
hepr
oduct
ionmanageroft
he
unit
.

34.
Youar ethehumanr
esour
cemanagerofmaramai
zemil
l
ingfact
ory.Youhav
e
identi
fi
edtheneedt
orecr
uitandt
rai
nst
afff
ori
mprov
edorgani
zati
onal
perfor
mance.

a.Pr
epar
ear
ecr
uit
mentpr
ogr
ammef
ort
henewst
aff
.
 b.Wr
it
eanot
icei
nvi
ti
ngal
lwor
ker
sforoneweekt
rai
ningexer
cise

c.Pr
epar
eaoneweekt
rai
ningpr
ogr
ammef
ort
hewor
ker
s.

d.Desi
gnt
heempl
oyeeev
aluat
ionf
ormf
ort
hehumanr
esour
cedepar
tment
.

35.
Youhav
ebeenchosenast
hedi
rect
orofst
udi
esofy
ourschool
,

Pr
epar
eamemoi
nfor
mingt
eacher
stosubmi
ttheendoft
erm exams.

Dr
aftat
imet
abl
efort
heendoft
erm exams.

Dev
elopgui
del
i
nest
obef
oll
oweddur
ingt
heendoft
erm exams.

Dev
elopt
heAl
evel
ter
minal
repor
tfory
ourschool
.

36.
Youhaveestabl
i
shedar est
aur
antprovi
dingbothl
ocal
andfor
eigndishes.Sal
e
promot
ionhasbeenidenti
fi
edasaleadi
ngr est
aur
anti
nthewholear
ea.

a)Dev
elopamenucar
dfory
ourbusi
ness

b)Desi
gnabr
ochur
efory
ourbusi
ness.

c)Pr
epar
eabusi
nesscar
dforpr
omot
ingy
ourbusi
ness.

d)Preparegui
deli
nesf
ory
ourempl
oyeet
oobser
veandt
opr
omot
ergood
customercare.

37.
youar eoperat
ingabookshopandyourst
ockisf
oundofbei
ngmi
sal
l
ocat
edand
disor
ganizedfr
om andwithi
ntheshel
vesoft
hebusi
ness

a)Desi
gnast
ockcar
dforusei
nthebusi
ness.

b)Pr
epar
eapol
i
cygui
del
i
nesf
orensur
ingpr
operi
nvent
orymanagement
.

c)Wr
it
etoanyf
ourofy
ourcust
omer
swhocl
aimt
ohav
ebeenov
erchar
ged.

d)Pr
epareast
atementofaccountf
orBI
DDENHI
GHSCHOOLf
ort
he
pr
evi
ousmonths.

38.
Youar eapromot
erofanewl
yincor
por
atedl
i
mit
edl
i
abi
l
itycompanyi
ncl
ay
products.

a)Desi
gnaf
li
ert
obegi
venoutt
opot
ent
ial
cust
omer
s.

b)Pr
epareanoti
cetothemembersoft
hepubl
i
cinf
ormi
ngt
hem aboutt
he
av
ail
abil
i
tyofshar
esforsal
e.
 c)Pr
esentaweekl
ypr
omot
ional
progr
ammef
ort
hecompany
.

d)Wr
it
eapr
ospect
usi
nvi
ti
ngmember
soft
hepubl
i
ctosubscr
ibef
orshar
es.

39.
Youar eoperati
ngabakeryi
nyourhomev i
l
lageandyouareent
eri
ngintoa
contractwi
thacashierofNal
ongoSecondarySchool
tosuppl
ybreadfor
studentsbreakfast
.

a)Pr
epar
ethet
ermsandcondi
ti
onst
obei
ncl
udedi
nthecont
ract
.

b)Prepareani
nvoi
cetotheschool
admi
nist
rat
ionf
ort
hebr
eadsuppl
i
edf
or
theprevi
ousmonth.

c)Desi
gnapr
oduct
ionpl
anf
ory
ourbaker
y.

d)Desi
gnacashsal
erecei
ptt
obei
ssuedt
ooneofy
ourcust
omer
s.

40.
YouhavebeenhiredtohelpCOSMOKl i
mit
edimpr
oveitsdecl
ini
ngperf
ormance
asaconsul
tant.I
ny ourf
ir
stmeetingwi
tht
hecompanydirect
orsitwasresol
ved
thaty
ouini
ti
atechangethatwil
lrevi
vet
hecompany’
slostimage.

a)Pr
epar
eav
isi
onst
atet
mentf
ort
hecompany

b)Dev
elopgui
del
i
nest
hatwi
l
lgov
ernt
heconductofempl
oyees.

c)Wri
tealet
tert
othemanagingdi
rect
orofGreenHot
elseeki
ngconsentt
o
t
hehostnewemployeesi
nducti
ontr
aini
ng.

d)Pr
epar
eempl
oyeespayr
oll
fort
hemont
hofAugust.

41.
Youhavestar
tedanewmi
ner
alwat
erbot
tl
ingcompanycompet
ingwi
thot
her
fi
rmsinthemarket
.

a)Gi
vet
hemi
ssi
onst
atementofy
ourcompany
.

b)Desi
gnanadv
ertf
orpr
omot
ingy
ourcompany.

c)Dev
elopapr
ogr
ammef
orl
aunchi
ngy
ourpr
oduct
s

d)Wri
tealet
terofcr
edi
ttooneofy
ourcust
omer
swhoi
scompl
aini
ngaboui
t
hav
ingbeenoveri
nvoi
ced.

42.
Youar
eafarmerandhav
ewonshs10m cont
ractt
osuppl
ypoul
tr
ypr
oduct
sto
UHURUhot
el.

a)Pr
epar
eamar
ket
ingbudgetofshs4,
000,
000f
oronemont
h.
 b)Pr
epar
eadel
i
ver
ynot
efort
hei
nit
ial
suppl
yoft
hepr
oduct
s.

c)Dev
elopt
ermsandcondi
ti
onst
obei
ncl
udedi
nthecont
ractwi
thUHURU
Hot
el.

d)Thi
eveshavebr
okenint
oyourfar
m andranof
fwi
thmor
ethanhal
fofy
our
chi
cken.Howwil
lyousust
aint
hecontr
act.

43.
Youar eoperati
ngasmallscal
ebusinessdeal
i
ngintheproduct
ionofmetal
l
ic
productsandy ouhav
efounditnecessar
ytoexpanditusi
ngaloanobtai
ned
from yourbank.

a)Pr
epar
eaf
inanci
alpl
anf
ory
ourbusi
ness.

b)Dr
awupaweekl
ydi
str
ibut
ionschedul
efory
ourpr
oduct
s.

c)Giv
enthattoexpandedbusi
nessr
equi
resmor
eempl
oyeespr
epar
eaj
ob
adver
tfort
hepostofpurchasi
ngmanager
.

d)Desi
gnapr
ogr
ammef
ort
hei
nduct
ionft
henewl
yrecr
uit
mentempl
oyees.

44.
Youareoper
ati
ngafrui
tprocessi
ngbusi
nesswhichi
sexperienci
ngadecl
inei
n
sal
es.Youhaveani
ntent
iontoconveneameeti
ngtodiscussthewayfor
ward.

a)Dev
elopar
ootcauseanal
ysi
stot
hechal
l
enge.

b)Wr
it
eanAgendaf
ort
hemeet
ing.

c)Makeanor
derf
orpur
chaseofr
efr
eshment
sformember
sint
hemeet
ing.

d)Gi
veaj
obdescr
ipt
ionf
ort
hepostofsal
esagent
.

45.
Youar
eoper
ati
ngabust
ranspor
tbusi
ness.

a)Desi
gnabusf
aret
icketf
orusei
nthebusi
ness.

b)Dr
awadai
l
ytr
avel
schedul
efort
hebuses.

c)Dev
elopgui
del
i
nesf
ory
ourempl
oyeest
oobser
vef
orhandl
i
ngt
hebuses.

d)Pr
epar
eaweekl
ymai
ntenancepr
ogr
ammef
ory
ourbuses.

46.
Youwantt
ost
artabusi
nessdeal
i
ngi
nbaker
ypr
oduct
s

a)Pr
epar
eal
ett
erofi
nqui
ryt
oyourwoul
dbesuppl
i
ers

b)Wri
teapurchaseordert
oyoursuppl
i
ersr
equest
ingf
ort
hesuppl
yoft
he
pr
oduct
srequired.
 c)Prepar
eaquest
ionnai
ret
oyourcust
omer
swhowantt
obesuppl
i
edwi
th
yourpr
oduct
s.

d)Desi
gnar
ecei
ptt
obei
ssuedt
oyourcust
omer
s.

47.
Youar
eoper
ati
ngar
est
aur
antandt
akeawaybusi
ness

a)Pr
epar
edut
iesandr
esponsi
bil
i
tiesofwai
ter
/wai
tr
ess.

b)Dev
elopaj
obanal
ysi
sfort
hechef
.

c)Desi
gnacashr
ecei
ptf
ory
ourbusi
nessuse.

d)Desi
gnamenuf
ory
ourpr
oduct
s.

48.
Youareoperat
ingapar
tnershi
ppr
int
ingbusi
nessandy
ouhav
eagr
eedt
o
changei
tint
oapublicl
i
mi t
edcompany.

a)Dev
elopa(
i)memor
andum ofassoci
ati
on.

a.(
ii
)Ar
ti
clesofassoci
ati
on

b)Dev
elopacompanypr
ofi
l
efory
ourpr
oject
.

c)Pr
epar
eapr
ospect
usy
ouar
etousewhensel
l
ingshar
est
othepubl
i
c.

d)Pr
esentagener
aldescr
ipt
ionofy
ourbusi
ness.

49.
Youhav
ecomplet
edyourAdvancedl
evelcert
if
icateofEducat
ionandSeeki
ng
empl
oymentasasal
espersoninLi
ntTexti
leDistr
ibut
ionCompany.

a)Wr
it
eanappl
i
cat
ionl
ett
erf
ort
hepostofsal
esper
son.

b)Wr
it
eyourcur
ri
cul
um v
itaet
obeat
tachedt
oyourappl
i
cat
ion.

c)Asanewsal
esper
sondesi
gnanewi
dent
it
ycar
dforusei
nbusi
ness.

d)Dev
elopaquest
ionnai
ret
obeusedi
nconduct
ingamar
ketsur
vey
.

50.
Youareagener
almanagerofamotorgar
aget
hatof
fer
scr
edi
tfaci
l
iri
est
o
cust
omersasasalespr
omotingst
rat
egy.

a)Pr
epar
eacr
edi
trecov
erypr
ogr
ammef
ort
hebusi
ness.

b)Pr
epar
eabr
ochur
etopbei
ssuedt
opot
ent
ial
cust
omer
s.

c)Dev
elopcr
edi
tter
msandcondi
ti
onsf
ory
ourbusi
ness.

d)Duet
oincr
easedcl
i
ent
syouhav
edeci
dedt
orecr
uitanaccount
ant
s
 assi
stant
.Wr
it
eanappoi
ntmentl
ett
ert
othenewl
yaccount
sassi
stant

51.
Yourmotorvehi
clewashi
ngbayhasregi
ster
edcust
omer’scompl
aint
sabout
del
ayedserv
icesandthef
toft
hepropert
iesandmotorv
ehicl
epar
ts.

a)Pr
esental
ayoutf
ory
ourpr
oject

b)Desi
gnawor
kor
derf
ormt
obeusedbyy
ourcust
omer
s

c)Pr
pareaprogr
ammeforaonedaysensi
ti
zati
onandtrai
ningwor
kshop
i
ntendedt
oimprov
eser
vicedel
i
ver
yinyourbusi
ness.

d)Dev
elopnewsecur
it
ygui
del
i
nest
obeobser
vedatt
hewor
kpl
ace.

52.
Youownanoldfarmtr
act
ort
hatf
requentl
yhasmechanical
probl
emsdueto
poorhandl
i
ng.Youhav
edeci
dedt
osellitof
fandusethemoneytobuyanew
one.

a)For
mul
atet
ermsandcondi
ti
onsf
ort
hesal
eoft
heol
dtr
act
or.

b)Draf
trul
esandr
egul
ati
onst
obef
oll
owedbyt
hef
arm wor
ker
swhenusi
ng
thet
ract
or.

c)Desi
gnacerti
fi
cat
etobei
ssuedt
oanempl
oyeewhoseper
for
mancei
s
out
standi
ng.

d)Desi
gnar
ecept
ionr
egi
stert
hatshal
lbeusedi
nthebusi
ness.

53.
Youhav
esecur
edal oanofshs100mi
l
li
onst
oest
abl
i
shapar
tner
shi
pbusi
ness
deal
i
nginRi
ceprocessi
ng

a)Pr
epar
eanoper
ati
onal
budgetf
ory
ourbusi
ness

b)Dr
aftacapi
tal
expendi
tur
ebudgetf
ory
ourbusi
ness.

c)Wr
it
eanot
icei
nvi
ti
ngpr
ospect
uspar
tner
sforameet
ing.

d)Pr
epar
eapar
tner
shi
pdeedf
ort
hebusi
ness.

54.
Youareoperat
ingadaywor
kspr
oject
.youhav
erecei
vedani
nqui
ryaboutt
he
goodsavai
labl
eforsal
e.

a)Pr
epar
eaquot
ati
ont
orepl
ytheabov
einqui
ry.

b)Wri
teawarni
nglet
tert
oMsNassangaJul i
etasecr
etar
ywhose
per
for
manceisbel
owt hemi
nimum accept
ablest
andar
ds
 c)Formulatesaf
etyguidel
i
nest
obef
oll
owedbyy
ourwor
ker
sdur
ingt
he
producti
onprocess.

d)Adv
ert
iset
hesal
eofy
ourol
dtr
uckati
tsdi
sposal
val
ue.

55.
Youhav
eacqui
redal
argebui
l
dingandy
oui
ntendt
ost
artasuper
mar
ket
.

a)Desi
gnar
etai
ll
ayoutf
ort
hebusi
ness

b)Pr
epar
eabudgetf
orst
art
ingt
hebusi
ness

c)Desi
gnagoodsr
ecei
vednot
efort
hebusi
ness

d)Writ
eastandi
ngorderinstr
ucti
ngy
ourbanktomakemont
hlydeduct
ions
ofshs150,
000andtransferitt
oUMEME’saccount
.

56.
Youhaveboughtalargescal
epoul
tr
yfar
m andy
ouwantt
oacqui
reabankl
oan
tohel
pyouimprovethefarm.

a)Wri
teanappl
i
cat
ionl
ett
erf
orabankl
oant
obei
ncl
udedi
nthebusi
ness
pl
an.

b)Pr
epareamemor andum i
nvi
ti
ngal
ltheexi
sti
ngst
afft
oat
tendanur
gent
meet
ingtodi
scusshowt orevi
vet
hefarm.

c)Wr
it
eat
endernot
icef
ort
hesuppl
yofpoul
tr
yfeedst
othef
arm.

d)Dr
aftapr
ogr
ammef
ort
rai
ningwor
ker
saboutpoul
tr
ykeepi
ng.

57.
Youi
ntendt
ost
artabr
ickmaki
ngpr
ofecti
nyourhomear
ea.

a)Pr
epar
eapr
ocessl
ayoutf
ort
hepr
oject
.

b)Wri
teupaprogrammeforr
educi
ngt
henegat
iveef
fect
sofy
ourpr
ojecton
t
henatur
alenvi
ronment
.

c)Desi
gnabannerf
orpr
omot
ingy
ourpr
oduct
s.

d)Wri
teawarni
ngtothepubl
i
ctobepl
acedatt
hesi
tei
nfor
mingt
hem t
hat
t
helandbel
ongstoyou.

58.
Youhav
eobt
ainedsuf
fi
cientf
undst
ost
artasav
ingandcr
edi
tsoci
ety
.

a.Desi
gnachequedeposi
tsl
i
pforcust
omer
’suse.

b.Dev
elopacr
edi
tpol
i
cyf
ort
hepr
oject
.

c.For
mul
ateal
oanr
ecov
erypr
ogr
ammef
ory
ourpr
oject
.
 d.Dev
elopaconst
it
uti
ongov
erni
ngt
heoper
ati
onsoft
hepr
oject
.

59.
Youareoperat
ingacof
feeprocessi
ngfact
oryandy
ouhav
edeci
dedt
oexpand
youroper
ati
onbyrecr
uit
ingmoreemployees.

a.Wr
it
eaci
rcul
ari
nvi
ti
ngal
lyourempl
oyeest
oanur
gentmeet
ing

b.Pr
epar
eanadv
ertf
ort
hepostofamar
ket
ingmanager

c.Dr
awapr
ogr
ammef
ort
hei
nduct
ionofnewempl
oyees.

d.Desi
gnanor
gani
zat
ional
char
tfory
ourf
act
ory
.

e.Pr
epar
eaweek’
sdi
str
ibut
ionschedul
efory
ourpr
oduct
s.

60.
Youhavestart
edaminer
alwat
erpr
ocessingf
actoryandyouar
ecompet
ingwit
h
otherf
ir
msinthemarket
.Youar
ecarr
yingouti
ntensi
vecampaignst
omakeyour
newproductknown.

a)Desi
gnabusi
nesscar
dtopr
omot
eyourbusi
ness.

b)Dr
aw apr
ogr
ammef
orl
aunchi
ngt
heent
erpr
ise.

c)Wr
it
eupy
ourmaj
orgoal
soft
hebusi
ness.

d)Wri
teacredi
tnot
etoy
ourcust
omerwhoi
scompl
aini
ngofbei
ngov
er
i
nvol
ved.

61.
Yourconst
ructi
onfir
m hasbeenincor
por
atedi
ntoacompanyaf
terr
ecei
vi
nga
grantf
rom ent
rpri
eUgandali
mited.

a)Wr
it
eashar
ecer
ti
fi
cat
etobei
ssuedt
oshar
ehol
der
s

b)Pr
epar
eyourcompany
’sassetr
egi
ster
.

c)Wr
it
eat
ermi
nat
ionl
ett
ert
oMrKuduI
saacwhoi
sfr
adual
ent
.

d)Desi
gnanappr
aisal
for
m f
orusagei
nthehumanr
esour
cedepar
tment
.

62.
Youar
eaNewHeadt
eacherofAshokaHi
ghSchool
.

a)For
mul
ater
ulesandr
egul
ati
onst
obef
oll
owedbyt
heschool
.

b)Draf
tguidel
inestobef
oll
owedbyt
hest
oremanageronr
ecei
ptofi
tems
fr
om suppli
ers.

c)Designapassoutchi
tforusagewhi
l
est
udent
sar
emov
ingi
nandoutof
school
 d)Designast
ocki
ssueandr
equi
sit
ionf
ormt
obeusedbyt
hest
ores
depart
ment.

63.
Youar eoperat
ingaHot
elinabusytr
adi
ngcenterandy
ouar
eint
hepr
ocessof
transf
ormingthehumanresour
cedepar
tment
.

(
a)Dev
elop(
i)Aj
obdescr
ipt
ionf
ort
hecashi
er.
.

(
ii
)Aj
obspeci
fi
cat
ionf
oracashi
er.

b)Pr
epar
eanar
ri
val
anddepar
tur
etobeusedi
nmoni
tor
ingempl
oyees.

c)Pr
epar
eanempl
oymentcont
ractf
ort
hewai
ter
.

d)Pr
epar
eagoodsr
etur
nednot
etot
hesuppl
i
eroff
rui
ts

64.
Youhavebeenappoi
ntedtheNewManagerofHOPEMEDI
CALCENTER,
oper
ati
nginyourhomearea.

a.Desi
gnanewmedi
cal
treat
mentf
ormt
obeused.

b.For
mulat
ehygi
eni
ccondi
ti
onst
obegi
vent
oempl
oyeest
oobser
ve
cl
eanl
i
ness.

c.Desi
gnanempl
oyeer
ecor
dcar
dfory
ourwor
ker
s.

d.Pr
epar
ear
adi
oadv
ertt
opr
omot
etheser
vicesofy
ourbusi
ness.

65.
Youareamanagi
ngDi
rect
orofBi
scui
tsmanuf
act
uri
ngf
act
oryoper
ati
ngi
n
kampalaci
ty.

a.Wr
it
eapr
ospect
usi
nvi
ti
ngmember
soft
hepubl
i
ctosubscr
ibef
orshar
es.

b.Wr
it
eaday
spet
tycashv
oucherf
ormaki
ngof
fi
cer
s’t
ranspor
tal
l
owances.

c.Prepareadispat
chnot
efort
hegoodsy
ouar
eaboutt
osendt
oa
customer.

d.Pr
epar
eaonedaypr
omot
ional
progr
ammef
ory
ourbi
scui
tsi
nMukono.

66.
Youar
econducti
ngaresear
chher
bal
toot
hpast
eandy
ouar
epl
anni
ngt
ost
art
commerci
alpr
oduct
ion.

a)Desi
gnaNewspaperadv
ertt
opubl
i
cisey
ourpr
oject
.

b)Desi
gnal
abel
tobepl
acedont
hepackagi
ngmat
eri
alofher
bal
toot
h
past
e.
 c)Wr
it
eal
ett
erofi
nqui
ryt
othesuppl
i
erofpackagi
ngmat
eri
al.

d)Pr
epareaprogr
ammef
orobt
aini
ngal
oanf
undst
ost
artcommer
cial
pr
oduct
ions.

67.Youareoper
ati
ngamaizemil
li
ngplanti
ny ourhomeareaandyouareint
he
pr
ocessofsi
gni
ngcont
ract
stosupplymaizeflourt
oIgangasecondar
yschool
.

a)Pr
epar
eter
msandcondi
ti
onst
obei
ncl
udedi
nthecont
ract
.

b)Pr
epar
eadel
i
ver
ynot
efort
hei
nit
ial
suppl
yofmai
zef
lour
.

c)Desi
gnacashsal
esl
i
pforusei
nthebusi
ness.

d)Pr
epar
eani
nvoi
cet
oacust
omerwhohasmadeacr
edi
tpur
chase.

68.
Youhav eobtai
nedaloanofugshs20, 000,
000from equit
ybanktoexpandyour
frui
tprocessi
ngproj
ect.Theloani
spay abl
einfi
vemont hl
yequal i
nst
all
ment
star
tingwithJuneataninter
estof10%onout st
andi
ngbal ance.

a)Pr
epar
ethel
oanr
epay
mentschedul
e.

b)Dr
awaf
inanci
alpl
anf
ort
heexpansi
onofy
ourbusi
ness.

c)Pr
epar
eapur
chaseor
derf
orpackagi
ngmat
eri
als.

d)Pr
epar
eanact
ionpl
anf
ory
ourbusi
nessexpansi
on.

69.
Youaretheper
sonnelmanagerofSURE&SONSLTDenter
pri
sedeali
ngin
mentalf
abri
cat
ion.Thef
ir
mi sunder
goi
ngexpansi
onandt
husrecr
uit
ingmor
e
manpowertoimproveef
fi
ciency
.

a)Dev
elopapr
ogr
ammef
oror
ient
ati
onofnewwoker
s.

b)Pr
epar
eamast
erdai
l
ywor
kschedul
efort
hewor
ker
s.

c)For
mul
ateapol
i
cygui
del
i
nesf
orhandl
i
ngmachi
ner
yiny
ourbusi
ness.

d)Wri
tealet
terofr
ecommendat
iont
oMrkaf
eer
oPaul
anengi
neerseeki
ng
t
ojoinHWANSUNGl td.

70.
Youareengagedi
nthemar ket
ingofcosmeti
csasasal
esmanager.t
he
companyhasexper
ienceddecl
ini
ngsales.

a)Wr
it
ear
epor
tont
hemar
ketr
esear
chy
ouhav
ecar
ri
edout
.

b)Pr
epar
eapackagesheetf
ort
hegoodsy
ouar
eaboutt
osendt
oyour
 cust
omer
.

c)Wri
teacr
editst
atusi
nqui
ryonanewcl
ientwhowant
stot
akegoods
wor
thshs1000,
000oncredi
tfr
om y
ourbusi
ness.

d)Dr
awaday
’ssuppl
yschedul
efory
ourpr
oduct
.

71.
Youar
eaproduct
ionmanagerofBUYINZABAKERYLTDthesal
eshav
egone
downandy
ouchargedwit
htheresponsi
bil
i
tyofmaki
ngI
tregai
nit
sgl
ory
.

a)Pr
esentqual
i
tygui
del
i
nesf
ory
ourdepar
tment
.

b)Dr
aftgui
del
i
nest
oensur
epr
operi
nvent
orymanagement
.

c)Dr
awasi
tepl
anf
ory
ourent
erpr
ise.

d)Pr
epar
eapr
oduct
ionpl
anf
ort
hebusi
ness.

72.
Youareanewlyappoi
ntedmanagingdi
rectorofKULI
KA&SONSl t
ddeali
ngi
n
manufact
uri
ngofsoap.Thebusi
nesshasmanycr edi
tor
sandwor ker
swhoar
e
aboutt
ostri
keduetolackofcommunicati
onchannel
s,del
ayedpayment
sand
negl
ectbytheadmini
str
ati
on.

a)Wri
teamemotoyourhumanresourcemanageri
nvi
ti
nghi
mtoanur
gent
meeti
ngt
odi
scussthecur
rentsi
tuati
on.

b)Desi
gnar
ecept
ionr
egi
stert
hathal
lbeusedi
nbusi
ness.

c)Pr
epar
eapay
rol
lfory
ourempl
oyeesf
ort
hemont
hthathasj
ustended

d)Writ
eachequeofshs1,000,
000i
npay
mentt
ooneoft
hecr
edi
tsuppl
i
ers
ofpackagi
ngmater
ial
s.

73.
Youhav
est
art
edamoneyl
endi
ngSACCOi
nyourcommuni
ty

(
a)Dr
aftt
her
ight
sanddut
iesofSACCOmember

(
b)Dev
elopt
heSACCOl
endi
ngt
ermsandcondi
ti
ons.

(
c)Preparealoanr
epay mentschedul
eforacust
omerwhohas
borrowedshs4,
000,000forfi
veyearst
obepaidinequal
i
nstall
mentsataninter
estrateof5%permonth

(
d)Desi
gnacashwi
thdr
awf
ormt
obeusedbyt
heSACCO.

74.
Youareoper
eat
ingast
ati
oner
yshopt
hatal
soof
fer
sav
ari
etyofsecr
etar
ial
ser
vices.
 (
a)Wri
tealet
teri
nvi
ti
ngat
echni
ciant
oser
vicet
heof
fi
ce
machi
nes.

(
b)Desi
gnapr
ogr
ammef
orser
vici
ngt
heof
fi
cemachi
nes

(
c)Prepar
eacredi
tnot
eforacust
omerwhowasov
erchar
ged
byshs200,
000.

(
d)Dev
elopguidel
i
nesf
orpr
operhandl
i
ngofbusi
ness
machines

75.
Youpl
antoest
abl
ishadecor
ati
onbusi
nesswor
thshs7,
850,
000usi
ngy
our
per
sonal
savi
ngs.

(
a)Pr
epar
eapr
e-oper
ati
onal
budgetf
ory
ourbusi
ness

(
b)Dev
elopanor
gani
zat
ional
planf
ort
hebusi
ness

(
c)Draf
tgui
del
i
nesf
ormai
ntai
ningacompet
it
iveadv
ant
agef
ory
our
busi
ness

(
d)Desi
gnacust
omersat
isf
act
ionsur
veyt
ool
forusei
nyour
busi
ness

Quest
ionsonf
inanci
alr
ati
os
QN1.Ar
etai
lhadt
hef
oll
owi
ngi
nfor
mat
ioni
nt ear30th/
hey June/
2015

Sales 3,
600,
000 Landandbui
l
ding
790,000
Capital 1200,
000 Pl
antandmachi
ner
y
600,000
Bankl oan 1,
430,
000 Mot
orv
an
320,000
Drawi ngs 260,
000 Fur
nit
ure
400,000
Closingst ock 600,
000 Cr
edi
tor
s
640,000
Debtor s 500,
000 Bankov
erdr
aft
400,000
Cashbal ance 350,
000 Netpr
ofi
tfort
hey
ear
600,000
Requi red
 (
a)Preparet
hebalancesheetasat30th/
6/2015
(
b)Calcul
ate
(
i)Wor ki
ngcapi
tal

(
ii
)Wor
kingcapi
tal
rat
io

(
ii
i)Capi
tal
empl
oyed

QN2.Thef
oll
owi
ngi
nfor
mat
ionwasobt
ainedf
rom MATUAent
erpr
i dat30th/
sesLt 8/2013

Netsales shs690,000
Averagestock shs260,000
Costofsales shs450,000
Goodsav ail
ablef orsale shs560,000
Determine
(i
) Grosspr ofi
t
(i
i) Cl osingst ock
QN3.Thef oll
owingi nformati
onwasobt ai
nedfr
om t
hebooksofKOOTEPEEEnnt
rpr
isesLt
dfor
st
theyearended31 . 12.2013
Part
icul
ars shs par
ti
cul
ars shs

Purchases 2,300,000 Sales 3,

000,000
Bankbal ance 360,000 Land 790,000
Debt ors 500,
000 Bankloan 1,440,
000
Mot orcycle 320,000 Gr ossprofi
t 800,000
Creditors 540,000 Dr awings 1,200,000
Capital 600,000 Machi nery 200,000
Gener alexpenses 600,000 St ock31.12.2013 500,000
Furniture 400,000
Requi red
(i) Grossprofi
tmar gin (
vi)r
ateofst
ocktur
n
(ii) Li qui
dit
yratio (
vii
)netpr
ofi
trat
io

(
ii
i) Av
eragecr
edi
tper
iodf
orpur
chasesi
nmont
hs

(
iv) Av
eragecol
l
ect
ionper
iodf
ordebt
sinweeks

(
v) Aci
dtestr
ati
o

QN4.Thef
oll
owi
ngbal
ancesr
elat
etoJi
njat
rader
slt
dfort
hey
ear2012.

Par
ti
cul
ars Debi
t(shs) Cr
edi
t(shs)

Capi
tal 10,
000,
000

Pur
chases 4,
000,
000
Fi
xedasset
s 3,
350,
000

Tur
nov
er 6,
500,
000

Sundr
yexpenses 1,
099,
000

Di
scountr
ecei
ved 4,
500

Debt
ors/
credi
tor
s 2,
500,
000 844,
500

Rentr
ecei
ved 5,
500

St
ock01/
01/2012 380,
000

Dr
awi
ngs 15,
000

Cashbal
ance 6,
010,
500

TOTAL 17,
354,
500 17,
354,
500

Addi
ti
oninfor
mation
 Unusedst at
ioneryon31st/
Dec/2012wasshs220,
000
 Netprofi
tfortheyear
(
a)Calcul
atethefoll
owing
I. Costofsal es

I
I. Gr
osspr
ofi
t

I
II
. Wor
kingcapi
tal

(
b)Comput
eandi
nter
pret

I
. I
nvent
oryt
urnov
erper
iod

I
I. Admi
nist
rat
ionr
ati
o

I
II
. Gr
osspr
ofi
tmar
gin

I
V. Av
eragecol
l
ect
ionper
iodf
rodebt
s

V. Rat
eofr
etur
noncapi
tal
empl
oyed

QN5.Thef
oll
owi
ngi
nfor
mat
ioni
sforKI
CONCOENTERPRI
SESl
tdi
spr
ovi
dedf
ort
hey
ear2011

Netsal
es shs600,000
Costofsal
es shs430,
000
Rent shs80,
000
El
ectr i
cit
y shs30, 000
I
nsur ance shs20, 000
Calculatet hefol
lowi ng
i. Gr osspr ofit
i
i. Netpr ofi
t
QN6.Gi vent hefollowingaboutJOBALOEnt
erpr
isesLt
dfort
hey
earendi
ng2011
Sales shs7, 000,000
Purchases shs4, 800,000
Closi
ngst ock shs2, 100,000
Expenses shs1, 800,000
Openi ngst ock shs2, 300,000
Calculate
i. Gr osspr ofitratio

i
i
. Netpr
ofi
t

i
i
i. Netpr
ofi
trat
io

QN7.Givent
hatapurchasei
nvoi
ceshowsfiv
eit
emsofshs8,
000,
000eachl
ss25%tr
ade
di
scountand10%cashdiscount
.Ift
heval
ueoft
hei
nvoi
cewaspaidwit
hint
hecr
edi
tper
iod.

Cal
cul
atet
heamountof
i
. Cashdiscount
ii
. Tobepai dtot
hesuppl
i
er

QN8.Gi v
ent hefollowingi
nformat
ion
Netsales shs1, 200,000
Costofsal es shs860,000
Adverti
sing shs60, 000
Tel
ephone shs40, 000
Sal
ariesshs160, 000
Cal
culatet he,
(i
)Gr ossprofit
(i
i
)Netpr ofi
t

QN9.Giventhef ol
lowinginformation
Fi
xedassets shs8,000,000
curr
entassets shs3,600,000
Longtermli
abili
ti
esshs4, 200,000
Curr
entli
abil
i
ties shs1, 500,000
cal
culat
ethe;
(
i)Wor ki
ngCapi tal
(
i)NetWor t
hoft hebusiness
QN10. Thef ol l
owi ngwasobt ainedf r
om KUKUt radersf ortheyearendedDec31st2004
Sales shs20, 000,
000
Openi ngst ockst ock shs2, 000,000
Closingst ock shs5, 000,000
Mar ginr ate 25%
Calculate;
(
i)Gr osspr of it
(
ii
)Pur chases
QN11.MOMAEnt er
pr isespur chasedagr i
ndi
ngmi llatshs30, 000,
000therat eofdepreci
ati
on
i
s25%usi ngt hedi mini shingbal ancemethod,calculatet he
(
i)Tot al depr eciation
(
ii
)Bookv al
ueaf tert woy ears
QN12.JATUEnt erpriseshadt hefoll
owinginf
or mationat31st/dec/2011
I
ndust rial machi ner y shs10, 000,
000 Debt ors shs1,
800,000
Bank shs2, 000, 000 Accruedsal ari
es shs1, 500,000
Prepaidr ent shs2, 000, 000 Accruedincomes shs600, 000
Creditors shs3, 000, 000 Closingst ock shs1,200,000
Bankov er draf t shs800, 000 Prepaidi ncomes shs1, 000,000
Calculate
(
i)Tot al currentl iabiliti
es (
ii
)Totalasset s
(
ii
i)Wor kingcapi tal (
iv) Aci
dt estratio

(
iv)Capi
tal
empl
oyed

QN13.Givent
hef
oll
owi
ngdet
ail
sfr
om kakemboandsonsLt
dfort
heper
iodendi
ng
st
31 /Dec/
2010

Openi ngstock shs1,

000,
000
Sales shs10,
000,
000
Closingstock shs2,
500,
000
Goodsav ai
labl
eforsal
e shs8,
500,
000
Calculatethe
(
i)Costofsal es

(
ii
)Gr
osspr
ofi
tmar
kup

QN14.Gi
vent
hef
oll
owi
ngi
nfor
mat
ionf
orGI NGON31st/
FTLANDHOLDI dec/
2008

Netloss 3,
200,000 Stock1/ 1/
2008 600,000
Debtors 900,0000 Cashatbank 760,000
Credi
tors 600,000 Machi nery 1,
200,000
St
ock31. 12.2008 980, 000 Furni
tureandf
it
ti
ngs 480, 000
Adverti
sing 100,000 Cashinhand 240,000
Drawings 400,000 Salari
esandwages 1, 000,000
I
nsurance 120,000 Sales 3,600,000
Purchases 5,000,000 Carr
iageonsal
es 600,000
Ret
ur n outwards 700, 000 Retur
ni nwar
ds 800,000
Generalexpenses 300,000
Cal
culate
(i
)Capi talwor
kingcapi t
al (
iv)Capi
tal
empl
oyed

(
ii
)Capi
tal
owned (
v)Gr
osspr
ofi
tmar
gin

(
ii
i)Gr
osspr
ofi
tmar
kup (
vi)Netpr
ofi
trat
io

QN15.Thefol
l
owi
ngi
nfor
mati
onwasext
ract
edf
rom t
hebooksofBagol
eenterpr
ises
Bal
ancesheet
Shs Part
icul
ars Shs
Par
ti
cular
s

Capi
tal 70,
000 FI
XEDASSETS

Netpr
ofi
t 40,
000 Land 50,
000

Dr
awi
ngs 10,
000 Bui
l
dings 30,
000

LONGTERM Fur
nit
ure 8,
000
LI
ABI
LITI
ES

Bankl
oan 20,
000 Equi
pment 2,
000

CURRENTLI
ABI
LITI
ES CURRENTASSETS

Cr
edi
tor
s 20,
000 St
ock 15,
000

Bankov
erdr
aft 10,
000 Debt
ors 10,
000

Cashatbank 20,
000

Cashathand 10,
000

Requi
red
Cal
cul
atethef oll
owing
I
. Owner sequit
y (vi)Capital
empl oyed
II
. Cur rentliabi
li
ties (v
ii)Currentassets
I
II
. Bor rowedcapi tal (vi
ii)Circul
atingcapi
tal
I
V. Li quidcapital (i
x)Li quidfund
V. Wor kingcapital (
x)Fi xedcapital
QN16.Thefol l
owinginf or
mat
ionwasext
ractedf r
om thebooksofGoodSamar
it
anEnt
erpr
ises
forthey ear2012
I
tems shs
Sales 40,000,000 Purchases 20,000,
000
Purchasesr eturns 1,
620,000 Sal
esr eturns 500,
000
Openingst ock 10,000,
000 Sal
ariesandwages 3,
000,000
Telephone 600, 000 Debtors 980,000
Creditor
s 700,000 Cashi nbank 300,
000
Cshi nhand 100, 000 Motorv ehicl
e 3,000,
000
Shopf it
tings 4,000,000 Cl osi
ngst ock 980,000
Capitalempl oyed 18,010,
000
REQUI RED
(a)Comput et hefol l
owing
i. Costofsal es (
v)Grossprofi
t
i
i. Mar gi
n (
vi)Netprof
it
i
i
i. Aci dtestr atio (
vii
)Rateofret
urnoncapit
alemployed
i
v. Rat eofst ockt urn (
vii
i)Aver
agecoll
ect
ionperi
odfordebtor
s

(
b)I
nter
prety
ouransweri
npar
t(v
ii
i)

QN17.Thefol
lowi
ngbal
anceswereext
ract
edf
rom t
hef
inanci
alSTATEMENTSOFMoses
Owori
’sbusi
nessatt
heendof2014

Sales shs288,000,
000 Totalfi
xedasset s shs
65,500, 000
Closingst ock Shs50,400,
000 Av eragedebt ors shs90,000,
000
Tot alcur r
entassets shs36,100,000 Openingst ock1.1.2014 40, 200,000
Costofsal es shs201,600,
000 Equitycapital 68,
400,000
Total currentli
abi
li
ti
es shs16,
800,000 Netprofitbeforeinterestandt ax 40, 600,
000
Longt ermliabi
li
ti
es shs38,500,
000 Int
erestexpensef orthey ear 5, 700,000
Requi r
ed

(
a)Comput
ethef
oll
owi
ngr
ati
osf
ort
hey
ear

(
i) Gr
osspr
ofi
tmar
gin (
ii
) st
ockt
urnov
er

(
ii
) Debt
orscol
l
ect
ionday
s (
iv)l
ever
ager
ati
o

(
iv)I
nter
estcover (
vii
)wor
kingcapi
tal
rat
io
(
Viii
)Netprof
itmargi
n

(b)Inter
pretethef ol
lowi
ngrat
iosusi
ngyourr
esul
tsin(a)abov
e
(i) Stockturnover
(ii
) I nterestcover
QN18.Thefoll
owi nginformat
ionwasext
ract
edfr
om thebooksofqual
i
tywhol
esal
ersasat31st
Dec2014
Capit
al shs10860,
000 ock1st/
St 1/2014
shs1,
500,
000

Cash shs1,
800,
000 Bank
shs3,
500,
000

Purchases shs8,
000,
000 Sal
es
shs24,050,
000

Shor
tter
mloan shs150,
000 wagesandsal
ari
es shs2,
000,
000

Cr
edi
tor
s shs4,
500,
000 Ret
urni
nwar
ds shs50,
000

Ret
urnout
war
ds shs600,
000 ock31st/
St dec/
2014 shs300,
000

Debtor
s shs4,
000,
000 Mot
orv
an
shs13,
000,
000

El
ect
ri
cit
y shs 360,
000 Rent shs700,
000

Discountal
lowed shs60,
000 Dr
awi
ngs
shs3,060,
000

Machi
ner
y shs6,
000,
000 Longt
erml
oan shs3,
870,
000

Requi
red

(a)Calculate
i. Tur nov er (
ii
i) Grossprofi
t
i. Costofgoodsav ai
l
abl
eforsal
e (
iv) Netprof
it
ii. Costofsal es
(b)Comput e
(
i)
Wor ki
ngcapi t
alrat
io (
v)Rateofretur
noncapi tal
empl
oyed
(i
i)Rateofst ockturn (vi
)Stocktur
nov erper
iodinday
s
(
ii
i)Netprofittosales (vi
i)Fi
xedcostt
urnoverrati
o

(
iv)Debt
orst
oowner
sequi
tyr
ati
o (
vii
i
)Av
eragecr
edi
tper
iodf
orcr
edi
tor
sinmont
hs

QN19.Thef
oll
owi
ngi
nfor
mat
ionwasobt
ainedf
rom t eon30thj
hebooksofKent une2015

St
ock(
1.1.
2014) 5,
000,
000 St
ock30.
06.
2015 3,
000,
000
1
Sal
es 20,000,000 I
nvent
oryt
urnoverrat
io 3
4
Netprof
itmar
gin 5% Debt
ors 2,
000,
000
Cash 800,000 Bank 1,
200,
000
Credi
tor
s 2,500,000 Outst
andingsalar
ies 1,
000,
000
Furnit
ure 1,400,
00 Machi
ner
y 2,
500,
000
Equipment 1,
100,000
Required
(a)Calcul
atet
hevalue (
b)Comput
eandi
nter
prett
he,

(
i) Costofsal
es (
i)wor
kingcapi
tal
rat
io

(
ii
) Netpur
chases (
ii
)Aci
dtestr
ati
o

(
ii
i) Goodsav
ail
abl
efoesal
es (
ii
i)cr
edi
tper
iodi
nweeks

(
iv) Oper
ati
ngexpenses (
iv)Fi
xedAssetTur
nov
er

QN20.Theincomest
atementbel
owwasex
tract
edf
rom r
ecor
dsofABCwhol
esal
ersLt
don
31/
12/2015

Par
ti
cul
ars Shs(
000) Shs(
000)

Netsal
es 25,
000,
000

St
ock/
1/120 3,
500,
000

Netpur
chases 9,
500,
000

Goodsav
ail
abl
eforsal
e 13,
000,
000

St
ock31/
12/
2015 (
2,500,
000)

Costofsal
es (
10,
500,
000)

Gr
osspr
ofi
t 14,
500,
000

Tot
aloper
ati
ngexpenses (
8,300,
000)

Netpr
ofi
tbef
oret
ax 6,
200,
000

Thef
oll
owi
ngbal
anceswer
eal
soav
ail
abl
e

Total
cr edit
ors shs450, 000, 000
Total
interestexpenses shs620, 000, 000
Total
cur rentassets shs10, 500, 000, 000
Cashbal ance shs3,000, 000, 000
Bankbal ance shs2,500, 000, 000
Total
cur rentl
iabil
i
t i
es shs7,500, 000, 000
Total
fixedasset s shs5,000, 000, 000
Cal
culateandi nterpret
e
 I
. Cur
rentr
ati
o

I
I. I
nter
estcov
er

I
II
. I
nvent
oryt
urnov
err
ati
o

I
V. Cashr
ati
o

V. Av
eragecr
edi
tpay
mentper
iodf
orpur
chasesi
nweeks

VI
. Rat
eofr
etur
noncapi
tal
empl
oyed

QN21.Thef ol
l
owinginf
ormat
ionwasext
ract
edf
rom r
ecor
dsofki
kuubot
raderf
ort
heper
iod
st
ended31 /12/2016

I
nvent
ory(
1/o1/
2016) Shs6,
000,
000

I
nvent
ory(
31/
12/
2016 shs 5,
000,
000

I
nvent
oryt
urnov
err
ati
o 3t
imes

Tur
nov
er shs30,
500,
000

Netpr
ofi
trat
io 20%

Del
i
ver
yvan shs 1,
800,
000

Fi
xtur
esandf
it
ti
ngs shs 1,
000,
000

Debt
ors shs1,
650,
000

Cr
edi
tor
s shs2,
500,
000

I
nsur
ancedue shs1,
500,
000

Equi
pment shs 250,
000

Bankbal
ance shs750,
000

Cashbal
ance shs600,
000

Requi
redt
o:

(
a)Cal
cul
ate

(
i) costofsal
es (
ii
i) Netpur
chases

(
ii
) goodsav
ail
abl
eforsal
e (
iv) Tot
aloper
ati
ngexpenses
 (
b)comput
eandi
nter
pret

(
i) cur
rentr
ati
o (
ii
i) qui
ckassetr
ati
o

(
ii
) cr
edi
tcol
l
ect
ionper
iodi
nweeks (
iv)f
ixedassett
urnov
er

QN22.Thef ol
l
owingbalanceswer
eext
ract
edf
rom t
hef
inanci
alst
atementofNal
ufeeny
a
Ent
erpr
isesattheendof2016.

Par
tci
cul
ars shs par
ti
cul
ars (
shs)

Cash 2,010,000 Bank (

600,000)
Sales 35, 000,000 Purchases 9,500,000
Av eragestock 4,000,000 Rateofst ockturn 5times
Fixedasset s 5,000,000 Accountspay able 450,
000
Closingstock 2,500,000 Accountsreceivable 6,590,000
Tot aloper
ating expenses 8, 750,
000 I
nterestr
eceivabledue 50, 000
Requi redt
o;
(a)Cal cul
ate

(
i)Costofsal
es (
iv)Gr
osspr
ofi
t

(
ii
)Netpr
ofi
t (
v) Openi
ngst
ock

(
ii
i)Netpr
ofi
trat
io (
vi)Wor
kingcapi
tal

(
b)Comput
eandi
nter
pret

(
i)St
ockhol
dingper
iodi
nweeks

(
ii
)Rat
eofcr
edi
tor
stur
nov
er

(
ii
i)Qui
ckassetr
ati
o

(
iv)Debt
orscol
l
ect
ionper
iodi
nday
s

QN23.Thef
oll
owi
ngf
inanci
alst
atementr
elat
etokaboent
erpr
isesLt
d

KaboEnter
pri
sesLtd
I
ncomest
atementf
ortheyearended31stDec2016
Parti
culars shs shs
Sales
850,000,000
Lesscostofsal
es
610,000,000
Grosspr ofi
t
240,000,000
Lessoperati
ngcost
s:
Admi ni
str
ati
vecost
s 72,000,000
Sell
ingcostsanddist
ri
but
ioncosts 50,000,000
Othercosts 18,000,000

140,000,000
Profi
tbef oretax
100,000,000
Lesst axati
on30%
30,000,000
Profitaftertax
70,000,000

Kaboenterpr
isesLtd
St
atementoffinancial
positi
on
st
Asat31 December2016
Fixedasset s shs
Mot orv ehicl
es 120,500,000
Landandpr emises 100,000,000
Furnitureandf it
ti
ngs 80,400,000
Equipment 60,100,000
Total fi
xedasset s 361,000,000
Currentasset s
Inventory 35,500,000
Debt ors 64,
900,000
Prepay ment s 6,
200,000
Bank 45,
400,000
Total currentassets 152,000,000
Total assets 513,000,000
Capital andliabi
li
ti
es
Capital
Owner sequi t
y 200,
500,
000
Liabil
iti
es
Fivey earloan 130,
000,
000
Creditors 152,
500,
000
Unpai dt ax 30,
000,
000
Total capitalandli
abil
i
ties 513,
000,
000

Requi
red

(
a)Comput
ethef
ollowing
(
i)
Grosspr
ofi
tmargin (
v)Aci
dtestr
ati
o
(i
i)Netprofi
tmar gin (v
i)Fixedassetturnover
(i
ii
)Profi
tont otalasset
srati
o (vii
)Debtorsturnover
(i
v)Currentrati
o
Not e:
(b)Kaboent er
priseshasappli
edforashor
tter
m bankloanofshs40,000,
000repaymentwi
thi
n
sixmont hs.Givereasonswhythebankshouldacceptorrejectt
heappli
cat
ionbasi
ngonthe
currentrat
ioin2( a)(i
v)above

QN24.Thef ol
lowingwer eext ract
edfrom t
hebooksofBakul uon31st/
12/
2014
Details shs det ail
s shs
Capital 2, 700,000 St ock1/ 1/2014 250,
000
Plantandmachi nery 2,500, 000 Mot orv ehicleatcost 800,000
Purchases 3,600, 000 Sales 6,160,000
Wagesandsal ari
es 200, 000 purchasesr eturns 400,000
Discountal l
owed 600, 000 Discountr eceived 600,000
Carriageinwar ds 40,000 Transpor t 25,000
Wat erandel ectri
cit
y 105, 000 Baddebt swr itt
enoff 86,000
Gener alexpenses 10, 000 Rentrat es 85,000
Debt ors 150, 000 Creditors 550,000
Cash 60,000 Bank 300,000
Loan 400, 000
Additionalinformation
i. Cl osingstockwasv aluedatshsh225,
000

i
i
. Depreci
ationwaschar
gedat10%and20%onpl
antandmachi
ner
yandmot
orv
ehi
cle
respect
ively

i
i
i. Rentandr
atespr
epai
damount
edt
oshs50,
000

i
v. Pr
ovi
sionf
orbaddebt
stobei
ncr
easedbyshs3000

Requi
red

Comput
eandi nter
pret
i
. Costofsal es (
vi)Netpr of
itr
ati
o
ii
. Gr ossprofi
tmarkup (
vii
)Quickassetrat
io
i
ii
. Rat eofstocktur
n (
vii
i)col
lecti
onperi
odfor
debts

i
v. Aver
agenumberofday
sst
ockwashel
dbef
oresel
l
ing (
ix)Rat
eofr
etur
non
capi
tal

v
. Gener
alexpensesr
ati
o (
x)Fi
xedasset
t
urnover
 QUESTI
ONSONTAXATI
ON

1.UNGAEnt er
pri
seshadt
hef
oll
owi
ngVATexcl
usi
vet
ransact
ionswi
thVATr
egi
ster
ed
ent
erpr
ises

Pur
chases shs236,
000,
000

Sal
es shs259,
600,
000

Requi
red

(
i) Cal
cul
atet
heamountofVATpai
dbyUNGAEnter
pri
sest
oUgandaRev
enue
Aut
hor
ityf
ort
hatper
iod(
use18%asVatr
ate)

(
ii
) Det
ermi
neUNGAent
erpr
isest
otal
sal
esv
alue(
VATi
ncl
usi
ve)

b)JamesOmar ai
sanenter
pri
seswhereheearnsatotal
grosssal
aryofshs8,400,
000
peryear.Thi
smeanst
hatJames’
ear
ningsfal
lundert
hefort
hincometaxbracket
i
ndicatedbel
ow.

4thbr
acket Taxr
atepermont
h

Shs410,
000permont
handabov
e Shs25,
000+30%oft
heamountexceedi
ng
shs410,
000

Requi
red

Cal
cul
atet
heamountofpayasy
ouear
n(PAYE)
expect
edt
obepai
dbyJamesf
oray
ear

QN2.I nJanuary2015,youimport
edgoodsataCIFval
ueofus$3000.Theimportat
ion
att
ract
ed25%i mportduty,
50%excisedut
y,18%VATand6%wi t
hholdingtax.Att
he
ti
meofi mport
ati
on,theexchangerat
einUgandawas1US$=USHS2, 000

Requir
ed
Cal
culatetheamountof
a)Val ueaddedtax
b)Wi thholdi
ngt
ax
c) totalt
axespayabl
etoURA
QN3.Okwi i
mpor t
edausedcarf rom Japanin2015atacostofUS$1,000.Hepai dUS$300for
i
nsuranceandfrei
ghtrespect
ively.Thecaratt
ract
edanimportdutyof25%,excisedut
yof50%,
VATof18%, andenvi
ronmental dutyof20%.Attheti
meofimpor t
ati
on,theexchangerat
ein
ugandawas1US$=USHS3, 000.Cal cul
ateOKWI’
S

(
I) Cust
omsv
alue

(
II
) I
mpor
tdut
y

(
II
I) Ex
cisedut
y

(
IV) Val
ueaddedt
ax

(
V) Wi
thhol
dingt
ax

(
VI) Env
ironment
aldut
y

(
VII
) Tot
alt
axespay
abl
e

(
VII
I) Costoft
hecari
nUganda

QN4.St
udyt
het
abl
eandanswert
hequest
ionst
hatf
oll
ow

St
age Det
ail
s Costpr
ice(
shs) Sel
l
ingpr
ice(
shs)

1 Pr
oducer 2,
000,
000

2 Pr
oducert
owhol
esel
l
er 2,
000,
000 24,
000,
000

3 Whol
esal
ert
oret
ail
er 2,
400,
000 3,
000,
000

4 Ret
ail
ert
ofi
nal
consumer 3,
000,
000 4,
000,
000

5 Fi
nal
consumer 4,
000,
000

Gi
vent
heVATr
ateof18%,
cal
cul
atet
heVATpay
abl
eateachst
age.

QN5.Thefol
l
owi
ngVATexcl
usi
vet
ransact
ionswer
eav
ail
edt
oyoubyVATr
egi
ster
edbusi
ness
i
nyourcommuni
tyf
ort
hemonthofJuly
.

(
i) Badyboughtgoodswor
thshs40,
000,
000

(
ii
) Bal
usol
dthesamegoodst
oNdi
fuf
orshs58,
000,
000

(
ii
i) Ndi
fusol
dthesamegoodst
oNgoma,
ther
etai
l
ershs70,
000,
000

(
iv) Ngomasol
dthegoodst
othef
inal
consumerf
orshs84,
000,
000

Requi
red
 UsingtheVATrat
eof
a)ComputetheVATchar geablefortheval
ueaddedateachst age
b)AdviseNgomaont hegrosssalesv al
ueforhisgoodstoconsumer
st
QN6.On31 Dec2015, yousoldcementt hatcostshs35,
000,
000athss32,000,
000.Al
l
thetr
ansact
ionswereVATex clusiv
e.UsingtheVATr at
eof18%.Calcul
ate,
i
) VATonpurchases(inputtax)
i
i) VATonsales(out
putt ax)

i
i
i) VATr
efund

QN7.On1stNov2015,y
ousol dir
onsheet
sthatcostshs15,
000,
000toMrGonzangaat
shs20,
000,
000.Al
lthet
ransacti
onswereVATexclusi
ve,usi
ngtheVATrat
eof18%,cal
l

QN8.MadibaaUgandancit
izenear
nedt
hef
oll
owi
ngincomesfr
om hishousei
nUganda
andkenyafort
heyear2017
Houselocat
ion Monthl
yrenti
ncomes(shs)

Kampal
a 4,
500,
000

Nai
robi 4,
000,
000

Waki
so 1,
800,
000

Ji
nja 1,
700,
000

Tot
al 12,
000,
000

Additi
onalinformat ion
- At enanti nWaki sodi sappearedwi threntar rear
sf ort
womont hs
- Madi baear nedext r
ashs400, 000
- Hespentshs2, 000,000f orpainti
nghi sf ourhouses
Requi red,
Givenr entaltaxr ateof20%andt hresholdofshs2, 820,
000,calculateMadiba’
s
(i
) Annual grossr entincome
(i
i
) Char geabl erentali
ncome
(i
i
i) Rent altaxl i
abili
ty
QN8.Equi t
yHol dingLimi tedempl oysMar t
ha, Eri
c,Francis,andDamal i
ear ninganannual
sal
aryofshs2, 400, 000,shs2, 820,000.Shs3, 360,000,andshs4, 800,
000respect i
vel
y.In
addit
ional,
thecompanypay seachempl oyeeshs60, 000andshs40, 000permont hast r
anspor
t
andmedi calallowancer espect i
v el
y.
Giventheincome( PAYE)t axr atesasf oll
ows
Monthlyincome( shs) Taxliabil
i
ty
0>235,
000 NI
L

235,
000>335,
000 10%oft
heamountbywhichchar
geabl
e
i
ncomeexceedsshs235,
000

335,
000>410,
000 Shs10,
000plus20%oftheamountbywhich
char
geabl
eincomeexceedsshs335,
000

410,
000>10,
000,
000 Shs25,
000plus30%oftheamountbywhich
char
geabl
eincomeexceedsshs410,
000

Required,
calculatethePAYEt axLiabil
i
tyf or
(i) Mar t
ha
(ii
) Er ic
(ii
i) Fr anci
s
(iv) Di anah
QN9( a).MKpubl i
shersLtdempl oysthr
eeworkersOkel
l
oMoses,Wal
imbwaJames,OLupot
Francisandtheyear nasfoll
owsshs750, 000,shs310,
000andshs1,
500,
000permont
h
respectiv
elygiventhetaxbracketbelow
Taxableincomepermont h(shs) Rat
e

0-235,
000 NI
L

235,
000-335,
000 10%oft
heamountbywhichchar
geabl
e
i
ncomeexceedsshs235,
000

335,
000-410,
000 Shs10,
000plus20%oftheamountbywhich
char
geabl
eincomeexceedsshs335,
000

410,
000-10,
000,
000 Shs25,
000plus30%oftheamountbywhich
char
geabl
eincomeexceedsshs410,
000

Comput
ePAYEf
oreachwor
ker

(
b)St
udyt
het
abl
ebel
owandanswerquest
ionst
hatf
oll
ow

I
ncomeear
ner Employmenti
ncome Businessi
ncome Proper
tyi
ncome
(shs) (shs) (Shs)

MukasaJoseph 1,
000,
000 2,
000,
000 3,
400,
000
Opi
oDan 800,
000 1,
900,
000 2,
700,
000

Nakat
oMabl
e 1,
200,
000 2,
100,
000 3,
800,
000

Okel
l
oBob 600,
000 1,
400,
000 2,
300,
000

Foreachoft
heaboveincomeearner
sthet
axexempti
s8%oft
hei
rtot
ali
ncomewhi
l
ethei
r
expenses take12%oftot
ali
ncome.

Cal
cul
ate

(i) Gr ossincome
(ii
) Taxabl eincome
QN10.Youhav ebeeni nv i
tedtoaddressent repreneursiny ourcommuni t
yabouttheprocedure
fortaxcompl i
ance
Prepareapr esentationfortheentrepreneursundert hef ol
lowingsubthemes
(a)Causesofnon- t
axcompl i
ance
(b)Procedur esfort axcompl i
ance
(c)penal tiesfornont axcompl i
ance
QN11.Youhav ebeenappr oachedasabusi nessconsul tantbyanassociati
onoftrader
siny our
homedi stri
ctt oadv i
set hem onmat tersconcerningt axati
on.
(a)Explai ntothet r
ader sthemeani ngoft hefollowing
(i
) Taxevasion
(i
i) Taxav oidance
(i
ii
) Taxcompl iance.
(b)Out l
inet he,
(i
) Forei
gntradet axescollectedbyURA
(i
i) Local tr
adet axescol l
ectedbyURA
(c)IfMuv ubi animpor teri mport
samachi nef r
om chi naatCI Fvalueof1,
000(USD)andthe
machi neattractsimpor tdutyof25%, excisedutyof50%v at18%andwi t
hhol
dingtaxof6%
Calculat
e

(
i) VATpay
abl
e

(
ii
) Wi
thhol
dingt
ax

(
ii
i) Tot
alamountoft
axpay
abl
ebyAgany
iraCal
eb.
Exchanger
atei
sshs3,
500perUS
dol
l
ar

(d)
Giv
enthatacompanymadeagr osspr
ofi
tofshs800,
000andhadoper
ati
ngexpensesof
st
shs350,
000duri
ngtheyearended31 AUGUST2015,Calcul
atet
he

(I)cor
porat
etaxpayabl
etoURA
(i
i)Netprof
itaf
tert
ax
QN12.(a)JOVIKHOLDINGSLTDregi
ster
esbusi
nessdeal
i
ngi
nthepr
oduct
ionofcl
othand
employsanumberofworker
swhoi ncl
udeMoses,Geral
dandAnthonywhoar
epai
dmont
hly
sal
aryofshs200,
000,
shs400,000andshs800,
000respect
ivel
y.
Giv
entheincomePAYEtaxratesasfol
lows.

Taxabl
eincomepermont
h(shs) Rat
e

0-235,
000 NI
L

235,
000-335,
000 10%oft
heamountbywhichchar
geabl
e
i
ncomeexceedsshs235,
000

335,
000-410,
000 Shs10,
000plus20%oftheamountbywhich
char
geabl
eincomeexceedsshs335,
000

410,
000-10,
000,
000 Shs25,
000plus30%oftheamountbywhich
char
geabl
eincomeexceedsshs410,
000

Comput
ethei
ncomet
axpay
abl
eby

(
i)Moses

(
ii
)Ger
ald

(
ii
i)Ant
hony

(
b)Gi
vent
hef
oll
owi
ngVATi
ncl
usi
vet
ransact
ionsf
ort
hemont
hofAugust2015.

 JOVI
KHOLDI
NGSLt
dboughtcot
tonwool
from t
hecot
tonoutgr
owerasshs47,
200,
000

 JOVIKLt
dtransf
ormedcott
onwool
int
ocl
othandsol
ditt
oKar
magener
alent
erpr
ises
thewhol
esal
eratshs1,
240,
000

 Kar
magener
alent
erpr
isessol
dthecl
otht
oMer
cyar
etai
l
eratshs72,
160,
000

 Mer
cyt
her
etai
l
ersol
dthecl
otht
othef
inal
consumeratshs99,
120,
000

Cal
cul
ate

(
i) VATpay
abl
eateachst
ageofpr
oduct
ion

(
ii
) Tot
alVATpay
abl
e

(
ii
i) VATexcl
usi
vepr
icechar
gedt
othef
inal
consumeri
ncaseVAThadnotbeen
i
ncl
uded.
CASHFLOW STATEMENTQUESTI
ONS

QN1.Thef
oll
owi
ngproj
ecti
onsrel
atet
oKaki
raent
erpr
isesdur
ingt
hemont
hsof
May
,June,
Jul
yandAugust2017

(
i) On1stMay2017,t
heenter
pri
sehadacashbal
anceofshs40,
000,
000and
bankbal
anceofshs(
8,000,
000)
.

(
ii
) Output
sof600uni
ts,
750units,
and950uni
tseachatshs1,
200wer
etobe
sol
dinthemont
hsofMay,June,Jul
yandAugustoncashbasi
s.

(
ii
i) Mont
hlycr
editsaleswer
eproj
ectedt
obe25%ofcashsal
esbutpay
ment
woul
dbereceivednextmont
hless5%di
scount
.

(
iv) Donat
ionswer
epr
oject
edasf
oll
ows:

Mont
h shs
 May 1,
000,
000

June 1,
800,
000

Jul
y 1,
500,
000

August 3,
000,
000(
inf
orm ofphy
sical
goods)

(
v) Thebusinessr
ecei
vesmonthl
yrenti
ncomef
rom i
tspr
operty.Rentr
ecei
ved
on30thJunewasshs600,
000butthi
swasexpect
edtoincr
easeby10%af t
er
onemont h.

(
vi) I
nput
sof500uni
ts,800uni
ts,
1100uni
tsand1400uni
tseachatshs950
wer
etobepur
chasedoncashbasi
s.

(
vii
) Mont
hlyexpenseswer
epr
oject
edasf
oll
ows

Expenses shs

Ut
il
it
ies 250,
000

VAT 180,
000

Adv
ert
isi
ng 100,
000

I
nJul
y,noVATwaspai
d

(
vii
i
) Credi
tpurchasesofshs900,
000weremadei
nJune,t
hebusi
nesshasa
poli
cyofpayingforcr
edi
tpur
chasesi
n2equali
nst
all
ment
safteronemont
h.

(
ix) Thebusi
nesshasapol
icyofpay
ing5%salescommi
ssi
onont
otal
mont
hly
sal
es.nocommissi
onwaspaidi
nthefi
rsttwomont
hs.

Youar
erequi
red

(
a)Pr
epar
eKaki
raEnt
erpr
ises’
cashf
lowst
atementf
orf
ourmont
hs

(
b)Advi
seKakir
aEnt
erpr
isesonv
ari
ousway
sofmanagi
ngbusi
nesscash
sur
pluses

QN2.Thefoll
owinginf
ormat
ionrel
atest
othebooksofJafarent
erpr
isesl
tdf
ort
hef
ir
stf
our
st
monthsofthefi
nalnci
aly
ear2016whichbegunon1 July

(
i) Mont
hlycashsal
esamount
edt
oshs14,
000,
000butt
hiswast
oincr
easeby5%
mont
hly

(
ii
) Netcashbal
ancei
nJul
ywascashi
nhandshs5,
000,
000andcashatbankwas
shs7000,
000
 (
ii
i) Monthl
ycredi
tor
sanddebt
orsamount
edt
oshs2,
500,
000andshs3,
000,
000
r
espect
ivel
y

(
iv) Acqui
redal
oaninj
ulywor
thshs10,
000,
000.Pr
inci
palofshs4,
000,
000waspai
d
he3 and4th
r
d
af
teronemont
hperi
odandthebal
ancet
obepai dIt
herati
oof2:3i
nt
months.

(
v) Di
videndpay
mentt
oshar
ehol
der
samount
edt
oshs3,
000,
000i
nthemont
hof
August.

Mont
hlyr
enti
ncomewasshs500,
000.Thi
swast
oincr
easeby20%af
tert
wo
mont
hs.

(
vi) Thebusi
nessexpect
stomakemont
hlydonat
ionswor
thshs700,
000.Howev
ert
his
r
d
wastoreduceby10%int
he3 month

(
vii
) Mont
hlycashpur
chasesar
e60%oft
her
espect
ivemont
hlycashsal
es.

(
vii
i
) Thebusi
nesshasapol
i
cyofpay
ing2%sal
escommi
ssi
onmont
hlyonr
espect
ive
cashsal
es

(
ix) Expect
edcr
edi
tsal
esofshs4,
000,
000mont
hlybutpay
mentwoul
dbemadei
nthe
fol
lowi
ngmont
hofsal
e

(
x) Thebusi
nessi
ssuedadebent
ureofshs2,
400,
000i
nthemont
hofSept
ember
.

Requi
red

(
a)Pr
epar
ecashf
lowbudgetf
orf
ourmont
hs

(
b)Commentont
het
rendoft
henetcashposi
ti
onoft
heent
erpr
ise.

Qn3.
Thefol
l
owinginf
ormati
onrelat
etopr
oject
ionsmadebyZandaf
ort
hemont
hsofJanuar
y,
Febr
uar
y,MarchandApri
l2017.

I
. Pr
oject anceasatDecember31st2016shs20,
edcashandbankbal 000,
000

I
I. Saleswill
bebothcashandcredit
.Januarycashsalesar
eexpect
edtobe800units
atapr i
ceofshs10,
000each.Thereaf
ter
,cashsaleswil
li
ncr
easeatarateof5%per
mont h.Cr
edi
tsaleforeachmonthareexpectedt
obeshs5,500,
000.Debtor
swil
lbe
expectedtopayint
hemont hofsale

I
II
. Thebusi
nessplanstobuy15computer
satshs650,
000eachi
nMar
ch.Ani
mpor
t
dut
yof5%ont otalcostwi
l
lbepai
dinaddi
ti
on.
I
V. Mont
hlyexpect
edexpensesandpay
ment
sincl
ude;

Sal
ari
esandwages shs30,
000,
000

Machi
neser
vici
ng shs300,
000

Depr
eci
ati
on shs100,
000

Sal
ari
esf
orApr
ilwi
l
lbepai
dint
hemont
hofMar
ch

V. Zandaispayi
ngbackaloanofshs10,000,000pr
eviouslyobt
ained.Monthl
y
i
nstal
lmentsamountt
oshs2,000,000star
ti
ngFebruary.Thel
oanat t
ract
sint
erestof
shs100,
000permonthalsopayablest
arti
ngFebr
uary.

VI
. Thebusinesswi
llbuy900unit
sofrawmat eri
alsatshs6,
000eachi
nJanuary
.The
quant
it
yofr awmateri
alsi
sexpect
edtoincreaseby10%ev er
ymonth.Pur
chaseof
rawmaterial
sisstri
ctl
yoncashbasi
s.

VI
I. Zandaexpectstorecei
vesh10,
000,
000asadonat
ioni
nApr
ilandpl
anst
osel
lof
fan
ol
dv ehi
cleatshs9,
000,
000inMarch.

Requi
red

Pr
epar
eZandascashf
lowbudgetf
orf
ourmont
hs

QN.
4.El
i
anai
sastudentofS.
6andsheplanstoopenuparest
aur
anti
nherS.
6vacat
ion.
Her
eisasummar
yofhercashplanfort
hef i
rstt
hreemont
hsoft
heyear
.

i
. Cashsal
esshs1,
860,
000,
shs1,
395,
000andshs1,
450,
000r
espect
ivel
y.

i
i
. Loanf
rom y
out
hdev
elopmentf
undshs1,
450,
000Januar
y.

i
i
i. Recei
ptsf
rom debt
orsshs890,
000i
nFebr
uar
yandshs9,
250,
000i
nmar
ch.

i
v. Cashpur
chasesofshs720,
000,
shs480,
000,
shs240,
000r
espect
ivel
y.

v
. Di
rectwagesshs30,
000permont
h.

v
i. Admi
nist
rat
iveexpensesshs63,
000,shs61,
000and61,
000r
espect
ivel
y.

v
ii
. El
ect
ri
cit
yshs48,
000permont
h.

v
ii
i. Sel
l
ingexpensesshs20,
000,
shs15,
000i
nJanuar
yandMar
chr
espect
ivel
y.

i
x. Taxesshs226,
000t
obepai
dinmar
ch

Pr
epar
ehercashf
lowst
atementf
ort
hreemont
hs.
QN5.OperaEnt
erpri
sesoper
atesamai
zemi
l
l.Thei
nfor
mat
ionbel
owr
elat
etot
hemai
ze
mil
lfort
heyear2017.

1.Openi anceasat1stJanuar
ngcashbal y2017shs2,
200,
000.

2.Sal
esi
nkg

Januar
y shs90,
000

Febr
uar
y shs100,
000

Mar
ch shs80,
000

Apr
il shs20,
000

Eachkgwassol
datshs500oncashbasi
s

3.Obtai
nedshs10,
000,
000,15%i
nter
estl
oanf
rom ADCbanki
ntwoi
nst
all
ment
s;
shs6,
000,
000inFebr
aur
yandshs4,
000,
000i
nApril
.

4.Recei
ptsf
rom debt
orswer
eshs2,000,000,
shs900,
000andshs400,
000f
ort
hemont
hs
ofFebr
uar
y,marchandApri
lrespect
ivel
y.

5.Pr
oduct
ionofr
awmat
eri
alsi
nKgusedwer
easf
oll
ows

Januar
y shs6,
000

Febr
uar
y shs7000

Mar
ch shs8,
000

Apr
il shs9,
000

Theabov
erawmat
eri
alscostshs2000perkg

6.Labourcostfor
;Januar
ywereshs2,
000,
000,
Febr
uar
yshs1,
800,
000,
Mar
ch
shs1,
700,000andApril
shs1,
950,
000.

7.Product
ionexpenses;
Januar
yshs500,
000,
Febr
uar
yshs400,
000,
Mar
chshs300,
000and
Apri
lshs450,
000.

8.Mont
hlyadmi
nist
rat
iveandmar
ket
ingexpensesshs300,
000.

9.Agener
atorwasboughtatshs20,
000,0000ncr
edi
tinJanuary
.Hal
foft
hecostwaspai
d
i
nMarchandthebalancei
nApr i
l2017,pai
dint
woweekst i
me.
10.Thi
evesbr
okei
ntot
heof
fi
ceandst
oleshs70,
000,
000

Requi
red

(
e)Prepar
eOpiraEnter
pri
ses’cashf
lowst
atementf
ort
hemont
hsof
Januar
y,Februar
y,MarchandApr
il

(
f)Pr
oposeway
sofmi
nimi
zi
ngcashdef
ici
tsi
nthebusi
ness

QN6.Kagwai
ndust
ri
eswhi
char
ear
egi
ster
edcompanyhadt
hef
oll
owi
ngpr
oject
ions.

(
i) Thecompanyexpectstostar
toper
ati
onsi
nthemont
hofSept
ember2015wi
th
shar
ecapi
talofshs8,000,
000.

(
ii
) Monthl
ycashsalesar
eexpect
edtobeshs4,
000,
000i
nSept
emberandar
e
expect
edtoi
ncreaseby20%ever
ymonth.

(
ii
i) Mont
hlycredi
tsal
esofshs5,
000,
000permont
har
eexpect
edt
obepai
dint
he
mont
hf ol
l
owingthemonthofsal
e.

(
iv) Thecompanywil
lfl
oatshar
eswor
th60%ofi
tsi
nit
ial
shar
ecapi
tal
int
hemont
hof
December2015.

(
v) Thecompanywil
lacqui
realoanofshs3,000,
000f
rom cent
enar
yBanki
nthe
monthofOct
ober2015atanint
erestof5%permonth.

(
vi) Thepri
ncipl
eoft
heloanwil
lbepai
dinfourequal
inst
all
ment
sandt
hei
nter
est
st
art
inginthemont
hfoll
owingt
heacquisi
ti
onofthel
oan.

(
vii
) Thebusi
nesswil
lacqui
reamachinei
nSept
emberwor
thshs12,
000,
000.Thi
s
wil
lbepai
dinthr
eeequali
nst
all
ments.

(
vii
i
) Mont
hlywagebi
l
lofshs450,
000wi
l
lbepai
d.

(
ix) Thecompanywi
l
lcar
ryoutaf
undr
isi
ngi
nSept
emberandexpect
stor
aiseshs
7,
600,
000.

(
x) Thecompanywi
l
lpur
chaser
awmat
eri
alswor
thshss3,
000,
000ev
erymont
h.

(
xi) Thedivi
dendst
oshar
eholder
swill
bepai
daft he1stquar
ert terofoper
ati
onand
theyar
eexpect
edtobe10%ofshar
ecapi
tal
.

(
xii
) Taxofshs300,
000wi
l
lbepai
dev
eryDecember
.

(
xii
i
) Fixedcostsofshs200,
000permont
haretobepaidmont
hly
.Theyar
eexpect
ed
st
todecreaseby20%aftert
he1 monthofoper
ati
on.
 Requi
red

(
a)Pr
epar
eacashf
lowbudgetf
orkagwai
ndust
ri
esf
orf
ourmont
hs

(
b)Commentont
henetcashposi
ti
on

(
c)Howdi
ff
erenti
sacashf
lowbudgetf
rom ani
ncomest
atement
.

QN7.
(a)Out
li
nef
ourmai
ncausesofcashf
lowpr
obl
emsi
nanent
erpr
ise.

(
b) Kapapaalaent
erpr
isesLt
dhast
hef
oll
owi
ngcashf
lowpr
oject
ionsf he1stquar
ort ter
oft
hey ear2015.

(
i) Cashshor
tfal
lbr
oughtf
orwar
dfr
om l
astmont
hoft
hel
astquar
ter2014was
shs5,
890,
000.

(
ii
) Commissi
onincomeforthefi
rstquar
tershs.6,
000,
000.Thi
si stobespr
eadi
n3
mont
hsofthefir
stquar
teroftheyeari
nrati
os3:2:
1respect
ivel
y.

(
ii
i) Donat
ions(
fi
rstmont he1stquar
hoft ter
)shs8,
000,
000

(
iv) Machinedisposal
(i he2ndmont
nt he1stquar
hoft teroft
hey
ear
)waspr
oject
edt
o
beshs4,000,
000.

(
v) Aloant obeobtai
nedinthe1stmont
hofthe2ndquar
terofthey
earshs
10,000,000.
mt hi
swill
attr
actamonthl
yint
erestof5%star
ti
ngwit he2ndmont
ht hof
nd
the2 quar t
eroftheyear.

(
vi) Casht
ober
ecei
vedf
rom t
radedebt
orsasf
oll
ows;

1stmont
h 3,
040,
000

2ndmont
h 5,
360,
000

3rdmont
h 7,
280,
000

(
vii
) Debentur
esofshs16,820,000andshs5,
740,
000f he1stmont
ort hand2ndmont
hof
st
the1 quart
errespect
ivel
yweretobeobtai
ned.

(
vii
i
) Acashr efundofshs900,
000istoberecei
vedf
rom suppl
i
ersi
nthe1stmont
hofthe
st
1 quar t
er.Thi
sisinr
espectoft
heoverpaymentmadeoncashpurchasesmadein
t
hel astmonthoftheprev
iousquar
ter
.

(
ix) Monthl
ycashpur chasestoamont htoshs3,900,000.
(
x) Debent
urerepaymentistobeef
f ectedinthelastmont he1stquar
hoft terandthe1st
nd
monthofthe2 quar teroft
heyearf ort
hetwodebent ur
esobt
ainedrespecti
vely
.
 (
xi) Creditpur chasesf ort heperiodar eproj
ect edtobeshs21, 000,000int helastmont h
ofthe1stquar ter.Howev er,nopay ment stocr editsupplierswi l
lbemadeunt il2nd
mont hoft he2ndquar t
er.
(
xii
) Equipment sar et obepur chaseddur i
ngt he1stmont hoft he1stquarteratacostof
shs16, 000, 000.
(
xii
i
) Theent er
pr isepr ojectsmont hl ycashsal esofshs20950, 000.Thiswi llatt
racta
mont hlysal est axof15%pert hecashsal esmadei nthatmont h.
(
xiv
) Auditf eespermont haret obeshs750, 000.Thiswi llbepai datoncei nt helast
mont hoft he1stquar ter.
(
xv) Wagesandsal ariespermont hwi llt
otaltoshs810, 000.
nd st
(
xvi
) Purchaseofamachi neinthe2 mont hoft he1 quar t
eroft heyearist ocostshs
5,
000, 000
(
i) Repairsandmai ntenancepermont haret ocostt heent erpriseshs320, 000.
st
(
ii
) Non-cur r
entasset stodepr eciateatr at
eofshs3%byt heendoft he1 quar ter.
st
(
ii
i) Rentincomeofshs650, 000permont hispr oj
ect edinthe1 quar teroft heyear
st
star
tingwi ththe1 mont h.

Youarerequi
redt
oprepar
ekapapaal
aent
erpr
isesLt
d’scashf
lowst
atementf
ort
he
st
1 quart
eroftheyear
.

(c)whatmeasurescankapapaalaent
erpr
isesLt
dputi
npl
acei
nor
dert
oav
oidcashf
low
shor
tfal
l
sinthesubsequentper
iod.

Qn8.Thefoll
owi nginformat i
onr elat
est othebusinessofMusaasi zi
enterpr
isef
ort hemont hs
ofOctober,
Nov emberandDecember2014
(
i) Cashbal ancebr oughtf orwar dfrom themont hofSeptembershs.20,
000, 000
(
ii
) Mont hl
ycashsal eswer eshs9, 000,000
(
ii
i) Mont hl
ycr editsaleswer eshs4, 000,
000butpay mentwoul dbemadei nt hefoll
owing
mont h
(
iv) Thebusi nessboughtf urnitureinthemont hofNov emberwor t
hshs1,000, 000
(
v) Mont hl
ycashpur chaseswer eshs500,000
(
vi) Thebusi nessacqui redal oanwor thshs12, 000,000inOctobertobepaidi ntwo
equal i
nstall
ment si nt hef oll
owingmont hs.
(
vii
) Mont hl
ysal arybillwasshs700, 000
(
vii
i) Busi nessr eceivedcashdonat i
onsodshs750, 000duri
ngmont hofNov ember .
(
ix) Thebusi nessboughtmachi ner
ywor thshs8, 000,000andpaidshs3,000,000i nthe
mont hofOct oberandt her emai ni
ngamountwoul dbepaidintwoequal instal
lments
i
nthef ollowingt womont hs.
Required
(i
v) Wor koutmusaasi zi
’scashf lowstatementformonthsofOct ober,
Nov emberandDecember
(v) Expl aint hecashposi t
ionoft hebusiness
QN9.TELLent erpr i
seshasav ail
edy ouwi ththef oll
owingpr oj
ectionsfort hemont hofJuly,
August
,SeptemberandOct ober .
st
(
i) OnJul y1 2014, cashbal anceshs26, 000,000
(
ii
) Thesal esmangerexpect st osel lgoodsoncr editwor thshs40, 000,000mont hl
y.
Pay mentf rom creditcustomer sisexpect edasf oll
ows; 60%ofcr editsal
esinthe
mont hofsal eandt hebal ancei nthemont hfollowingsal e.
(
ii
i) Thef i
nancemanagerexpect st oobtaintwol oansofshs20, 000,000i neachofthe
mont hsofAugustandOct ober2014
(
iv) Mont hlycashsal esar eexpect edtobeshs60, 000,000.Acommi ssionof10%i spaid
tosal esmeneacht imecashi sreceived.
(
v) Mont hlycashpur chaseswor thshs40, 500,000ar eexpect edtobemade
(
vi) Adel i
v eryv anist obeboughti nthemont hofAugust2014atacostofshs
35,000, 000.
(
vii
) Mont hlywagebi llisest i
mat edt obeshs12, 500, 000.Ani ncreaseof10%i sexpected
int hemont hofOct ober2014.
(
vii
i
) Al oani nterestof5%permont hispay ableinthemont hf oll
owingacqui sit
ionofthe
loan
(
ix) Ex pansi onofbusi nessbui ldingsexpect edt ocostshs6, 200,000i nthemont hof
July2014andshs30, 000,000i nthemont hofAugust .
(
x) Gener al expensesar eexpect edt oamountt oshs7, 100,000permont h.
(
xi) Al l expensesar epai di nthemont hi nwhicht heyar eincur r
ed.
st
(
xii
) I ncomet axf orthe1 quar teroft hey earshs12, 000,000t obepai dinSept ember
2014.

Requi
red
(
a)Pr epar eacashf l
owst atementf orTel lenterpri
sesforuseinthe
periodofJul ytoOctober2014.
(
b)Suggestt oTellenter
prisesf i
veway sofmanagi ngcashshortfall
s
i
nt hecashf lowstatement .
QN10.Thefoll
owingt ransact i
onsr elat
et oJEM Enterpr i
sesforthemont hsofApril
,May,June
andJul
y2013
I. Openingbal ancesasat1stApr ilwasshs100mi l
li
ons
I
I. Sharecapitalfrom shar ehol der
sf orMayandJunewer eshsh6, 000,000an
dshs8,000,
000
II
I. Expectedcashf rom debt orsi nJulyshs10mi l
lions
I
V. Expect edtosel l ol
dv anwor thshs10mi ll
ionreceivingitinther ati
os5: 3:
2start
ingwith
May
V. Toi ncreaseoni tscapital,thebusi nesshopest oacquireal oani nMayofssh12mi l
l
ion
withamont hlyi nterestof5%.
VI. Thegraceper i
odgi vent ot hebusi nessshallbeonemont haft erwhichitwil
lstar
tpaying
theint
erest.
VII. Thebusi nessexpect edtobuyr awmat eri
alsworthshs5milli
oninthe1stmonthand
expectedt oincreaseby10%mont hly
.
VII
I. Itexpectedtobuyaj ui
ceblendingmachi neinApril
forshs14mil
li
on,payingshs4mil
li
on
cashandt hebal ancet obepaidi nther at
ioof4:2:
2inthefoll
owingmont hs.
I
X. Mont hlypurchasesoff rui
tsisprojectedatshs2mi l
li
on
X. Taxofshs200, 000tobepai dtoKCCAmont hl
y.
XI. Divi
dendar et obepai deveryafteronemont hatarateof10%oft heaverageshar
e
capital
.
Requi r
ed
(a)Prepareast at
ementshowi ngcashi nf
lowsandcashout fl
owsforthe
mont hsofApril t
oJul y2013
(b)Commentont hecashposi ti
onofJEM ent er
pri
sesforfourmonths.

QN11(a)Def i
neacashf lowst atementandgi vefourofi t
suses
(
b)Bi buuzat r
adi ngcompanyhadt hef ol
lowi ngt ransactionsf orthey earendi ng2011
I. Thecompanyexpect stosel lgoodsev erymont hwor thshs100, 000, 000andr educes
only80%i nt hemont hofsal eandt hebal ancet ober eceivedonemont haf t
ert hemont h
ofsal ef oral lsales.
I
I. Expect edmoneyf rom fr i
endsinJuneandJul yshs6, 000,000and8, 000,000r espect i
vely
.
II
I. Expect edcashf rom debt orsinJul yshs10, 000, 000
I
V. Sal eofol dv ani nJuneshs6, 000,000
V. Mont hlycr editsal esshs30, 000,000andpay menti stober eceivedf rom debt orsev er
y
afteronemont h.
VI. Loani sexpect edi nmayf oeshs12, 600,000andi twil
lattractani nt erestof10%per
mont h.
VII. Thegr aceper iodgi v entot hebusi nesswi llbei nt hemont handaf teronemont h,itwil
l
startpay mentofi nterest.
VII
I. Thecompanyexpect edt opayr awmat erialswor thshs5, 000,000i nt hefir
stmont hbut
thisi stoi ncreaseby10%mont hly.
I
X. Byt heendofApr il2011, thecompanyhadacashbal anceofshs4, 000, 000
X. Thecompanyexpect edt obuyaj uicebl endi ngmachi neinmayf orshs2, 000,000and
paycashshs1, 000, 000.Ther emai ni ngamountt obepai dint her atioof4: 2:
2
respect i
velyint hef oll
owi ngmont hs.
XI. Pur chaseoff r
ui tfrom f armersispr oj ectedatshs2, 000,000whi chi st oincreaseby20%
aftert hef ir
stt womont hs.
XII. Taxofshs200, 000wi llbepaidmont hlyst arti
ngwi ththemont hofJune.
XII
I. Thecompanyi st omakeacommi ssi onpay mentofshs12, 000,000mont hlywhi chist o
reduceby5%mont hlyaf t
erthef irstt womont hs.
Requi
red
Youarer equi r
edt opr epar eacashf lowst at ementf orf ourmont hsst artingwi thSept ember
2011.
QN12.Thef ollowingi nf ormat i
onwasobt ainedf rom t hebooksofUhur ui nv estment sLt dfor
themont hsofJanuar y, Febr uar y,
mar chandApr il2014.
st
I
. On1 Januar y2013, thebusi nessst artedwi thshs4,000,000
II
. I texpect edcashsal esof6, 000, 000permont h, howev er,
itisexpectedt oreduceby10%
i
nMar ch.
III
. Theexpect edcr editsal eswer eshs1, 600, 000permont hbutpay mentwoul dbemade
thefol lowi ngmont h.
IV. Themont hlyr entincomewas200, 000howev er,i
tisexpect edtoincreaseby25%af ter
thefi r
stt womont hs.
V. I mmedi atelyaf terthef irstmont hofoper at ion, t
heexpectedi ncomef r
om othersources
waspr oj ectedatshs2, 000,000permont h.
VI. Thebusi nesspl annedt opur chaseadel i
ver yv anatshs14, 000,000onhi repurchase.the
downpay menti sshs6, 000, 000andt hebal ancewast obepai dininstall
mentsof4: 3:1
respect iv el
yi nt hef oll
owi ngmont h.
VI I
. Thebusi nessexpect edt oacqui real oanf rom K. KBankLt di nFebruaryofshs4, 000,
000,
theloanwaspay ablei nf ourequal install
ment satani nterestrateof5%onr educing
balance, wi thef fectfrom mar ch2014.
VIII
. Theexpect edmont hlycashpur chaseswer eshs3, 000,000, expectedtoreduceby20%
aftert womont hs.
IX. Thebusi nessexpect edt oi ssueadebent ureofshs5, 000,00inmar ch2014.
X. Mont hlypay mentf orhi redl abourwasshs1, 500,000
XI. Theel ect ri
citybi l
lexpect edt obecl earedatt heendofev erymont hwasshs1, 200,000.
Required
a.Pr epar eacashf l
owst atementf orthemont hsofJanuar y
, February,
Mar chandApr il
b.Commentont henetcashposi tionofUhur uInv est
ment sLt dforfourmont hs.suggest
measur est hatUhur uinv est ment sshoul ddot oavoiddeficitsinthecashf l
ow.

QN13.Moraent erpri
seshadt hef oll
owi nginf
ormat i
on
I. Thebusi nessexpect st osel lgoodsev erymont hwor thshs200mi l
li
onsandr eceiveonly
80%i nthemont hofsal eandt heremaini
ngamountt ober eceiv
edonemont hafterthe
mont hofsal e
I
I. Mont hlyprojectedsal ariesf or50wor kerswer eshs150, 000perwor ker.
II
I. Thebusi nesshopest ogetal oaninAprilshs2,000,000
I
V. Themont hlyinterestont hel oanis5%pay ableafteronemont hgraceperiod.
V. Thebusi nessexpect sdonat ionsincashwor thshs3, 000,
000ppermont hbuttheyare
expectedt oreduceby10%af tert
hefi
rstthreemont hs.
VI. Mont hlyrentincomei sexpect edtobeshs5, 000,000butt hisisexpectedtoincreaseby
30%and6%r espect ivel
yaf t
ert womont hs.
st
VII. On1 mar ch2011, thebusi nesscommencedwi thcashwor thshs35mi l
li
oninthef i
rst
mont h
VII
I. Mont hlycashpur chasesshs6, 000,
000.
I
X. Thebusi nesswi l
lfinanceanycashshor t
fallwit
hadebent ur eatthebeginningofthe
nextmont hwor thani nter estof5%pay ableafter3mont hsofl apse.
Requir
ed
Prepar
eacashf
lowst
atementf
orf
ourmont
hs.

QN14.Thef ollowingi nformat ionwasobt ainedf rom thebooksofMuki saandcompanyLt d

st
I. On1 Januar y2016, thecompanyhadacashbal ancef orshs80, 000,000
I
I. I texpect edcr editsalesofshs24, 000, 000permont hbutpay mentwoul dbemadei nthe
foll
owi ngmont h.
II
I. I texpect edcashsal esofshs400, 000permont h.
I
V. Thebusi nessexpect eddonat ionsofcashshs8, 000,000permont hbutt hiswas
expect edt oreducebymont hlyaft
ert hefir
st2mont hs.
V. Themont hlyrentincomei sexpect edt obeshs2, 000,000howev eritwilli
ncreaseby40%
after3mont hs.
VI. I mmedi atel
yaf terthet womont hs,t heexpect edincomef r
om ot hersourcesispr oject
ed
at40, 000permont h.
VII. Thebusi nesspl annedt opur chaseav ehicleinJanuaryandadownpay menti stobeshs
32,000, 000andt hebal ancet obeef fectedinstall
ment s60%, 30%and10%r espectivel
y
inthef ollowingmont hs.
VII
I. Thebusi nesshopest oacqui r
eal oanf rom UBABankshs40, 000,000i nthemont hof
Februar y.Themont hl yint
erestont hisloani s8%andt heprinciplerepaymentwi llbe
effect edonemont haf t
eracqui r
ingt hel oan.
I
X. Theexpect edmont hlypur chasesar eshs16, 000,000howev eritisexpectedt oreduce
aftert womont hsby20%
X. Thebusi nesshopest osaleol dfurniturebycash4, 000,000Ithesecondmont h.
Requir
ed
Prepar
eCASHFLOW STATEMENTf orMuki sat r
aders

QN15.Thef oll
owingi nformat i
onrelatestoUMOJAI NVESTMENTSf orthemont hsofmay,
June,j
ulyandAugust2012
i
. Openi ngbal anceasat1stMay2012wasshs320, 000
ii
. Outputof800, 900, 700and100uni tswer esoldatshs500eachdur i
ngt hemonthsof
May, June, JulyandAugustr espectivel
y.
iii
. Loansofshs500, 000andshs300, 000wer eobtainedfrom i
nlandBankLt di nJuneand
August
iv. Recei ptsfrom debt orsofshs100,00, shs80,000andshs30,000wer eregister
edforthe
mont hsofJune, JulyandAugustr especti
vely.
v. Pur chasesof700, 800,
900and1, 000uni tsofrawmat er
ial
swer emadei nthemont hsof
May ,
June,JulyandAugustr espectivelyatacostofshs200peruni t.
v i
. Labourcost sfort hemont hsofMay ,
June,JulyandAugustwer eshs150,000,shs120,000,
shs100,000andshs140, 000r espectivel
y.
vii
. Amachi newasboughtandpai dinJul yforshs1,000,000
viii
. Mont hl
yfixedcost sofshs20,000permont hwer epaid.
ix. Mont hl
yrentr eceivablefr
om ashoeshi nershs50,000
QUESTI
ONSONI
NCOMESTATEMENTANDTHEBALANCESHEET

QN1.Thefol
l
owingt
ri
albal
anceofMUTIMATRADERSl
i
mit
edwasprepar
edfortheper
iod
ended31.
12.
2017
Detai
l
s Debi
t(shs000) Credi
t(shs000)

Pur
chasedi
scount 7,
000

Sal
esdi
scount 10,
000

Pr
ovi
sionf
orbaddebt
s 100,
000

Ret
urns 14,
000 13,
000

Dr
awi
ngs 780,
000

Baddebt
s 87,
000
Rent 400,
000

El
ect
ri
cit
y 160,
000

Wages 102,
000

I
ncomet
axpay
abl
e 207,
000

Cr
edi
tor
s 640,
000

Sal
es 13,
000,
000

Pur
chases 8,
235,
000

Debt
ors 1,
200,
000

Fur
nit
ureandf
it
ti
ngs 5,
800,
000

Mot
orv
ehi
cle 2,
940,
000

St
ock(
11/
1/2017) 1,
192,
000

Bank 102,
000

Cash 17,
000

Capi
tal 5,
205,
700

Debent
ure 2,
220,
000

Adv
ert
isi
ng 133,
000

Car
ri
ageonpur
chasi
ng 500,
000

Accr
uedi
nsur
ance 100,
000

Accumulat
eddepr
eci
ati
onon 180,
000
fur
nit
ure

Tot
al 21,
672,
700 21,
672,
700

Addit
ionali
nformati
on
I
. Cl osi
ngstockwasv aluedat1,
200,
000,000
II
. Addi t
ional5%provisionofthedebtorshastobemadeagai
nstbaddebt
son31/
12/
2017
I
II
. Oft herentpaidshs90, 000,
000isforthefort
hcomi
ngtr
adi
ngperiod
I
V. Wagesofshs20, 000,000wer est
il
loutstandi
ng
V. Depr eci
ati
onallfi
xedasset sby10%perannum atcost
Requir
ed
 a.Pr epareMUTI MA’SINCOMEst at
ementf oryouryearended31stDec2017
b.Pr epareMut ima’sbalancesheet
c. Comput eandi nter
pret
i. Wor kingcapital
ii. Av eragecoll
ect i
onperi
odf ordebts
i
ii. Rat eofstockt urn
QN2.Thef ol
lowingt ri
albal
ancewasext r
actedfrom thebooksofDONMANZE, anent
repr
eneur
on31/December2014
I
tem Debi
t(shs) Credit(
shs)

St
ock1j
anuar
y,2014 5,
000,
000

Pr
emi
ses 24,
000,
000

Bi
l
lsr
ecei
vabl
e 3,
000,
000

Pur
chase 28,
000,
000

Sal
ari
esandwages 3,
500,
000

Sal
es 52,
000,
000

Fi
xtur
eandf
it
ti
ngs 2,
500,
000

Di
scountr
ecei
ved 450,
000

Pl
antandmachi
ner
y 14,
000,
000

Rat
es 560,
000

Adv
ert
isi
ng 1,
040,
000

I
nsur
ance 380,
000

Gener
alexpenses 720,
000

Pr
ovi
sionf
orbaddebt
s 180,
000

Sungr
ydebt
ors 6,
000,
000

Bi
l
lspay
abl
e 1,
500,
000

Sundr
ycr
edi
tor
s 4,
300,
000

Cashi
nhand 240,
000

Bankov
erdr
aft 1,
860,
000
Dr
awi
ngs 600,
000

Capi
tal 30,
000,
000

Di
scountal
l
owed 750,
000

90,
290,
000 90,
290,
000

Additi
onalinf ormat i
on
i
. Cl osi ngst ockv al uedatshs6, 000,
000
ii
. Rat esaccr ued shs40, 000
i
ii
. Pr epai di nsur anceamountt oshs50,000
i
v. Dur ingt hey earDONMANZEt ookgoodsworthshs200,
000forhisper
sonaluse.
v. I ncreasepr ov isionf orbaddebt sto4%ofsundrydebtor
s
vi
. Pr ov idef ordepr eciationofplantandmachineryat10%peranum andf
ixt
uresand
fit
tingsat15% perannum
Required
(a)Calcul ate
i. Goodsav ailabl eforsale
i
i. Costofsal es
i
i
i. Gr osspr ofit
i
v. Netpr of i
t
v. Wor kingcapi tal
v
i. Capi tal empl oy ed
(b)Calcul ateandi nt erpret
i. Gr osspr ofitr atio
i
i. Netpr of i
trat io
i
i
i. Col l
ect i
onper i
odf ordebts
i
v. Pay mentper iodf ordebts
v. Wor kingcapi talrati
o
(c)Prepar eDONMANZE’ sbalancesheetasatthatdat
e

QN3.Thefol
l
owi
ngbal
ancesr
elat
etoJINJATRADERSLt
dfort
hey ear2013
Par
ti
cul
ars Debit(
shs) Credit(
shs)

Capi
tal 10,
000,
000

Pur
chases 4,
000,
000

Fi
xedasset
s 3,
350,
000

Tur
nov
er 6,
500,
000

Sundr
yexpenses 1,
099,
000
 Di
scountr
ecei
ved

Rentr
ecei
ved

Debt
ors/
credi
tor
s 2,
500,
000 844,
500

St
ock(
01/
01/
2013) 380,
000

Dr
awi
ngs 15,
000

Cashbal
ance 6,
010,
000

Tot
al 17,
354,
000 17,
354,
500

Addi tional inf ormation

Unusedst ockon31stDEC2013wasv al
uedatshs220, 000
Netpr ofi
tf ort hey earwasshs1, 251,
000
(
a)Cal culat e
i. Costofsal es
i
i. Gr osspr ofi
t
ii
i. Wor ki ngcapi tal
(
b)Comput eandi nter
prete
i. I nv ent oryturnov erper iod
i
i. Gr osspr ofi
tmar gin
QN4.Kay ondoPaul disclosedt hef ol
lowinginf
ormatonon31st/
i 12/ 2015
Parti
cul ars amount( shs par ticul ars amount( shs)
Capital 20, 000, 000 Cr edi t ors 9,
000,000
Debtor s 5, 000, 000 Int er estr eceived 2,
100,000
I
nsur ancepr emi um 560, 000 Ret ur nonsal es 180, 000
Netsal es 17, 820, 000 Ret ur nsonpur chases 360, 000
Carri
ageonsal es 240, 000 Car riageonpur chases 400, 000
Provisionf orbaddebt s 100, 000 Commi ssionincome 4,000, 000
Renti ncome 2, 000, 000 2y ear sl oan 3,400, 000
Accumul ateddepr eci
at i
ononmachi nery 600,000 St ock1. 12. 2015 13,100, 000
Netpur chase 9,040, 000 Goodwi l
l 2,000, 000
Buil
dings 20, 000, 000 Machi nery 3,
600, 000
Bank 2,900, 000 Publ icity 700, 000
Discountexpenses 680, 000 Discounti ncome 390, 000
Creditors 9, 000, 000 Debt or s 5,000, 000
I
nterestr ecei ved 2,100, 000 I
nsur ancepr emi um 560, 000
Returnonsal es 180, 000 Netsal es 17, 820, 000
Returnsonpur chases 360, 000 Car riageonsal es 240, 000
Carri
ageonpur chases 400, 000 Prov isionf orbaddebt s 100, 000
Commi ssioni ncome 4, 000, 000 Renti ncome 2,000, 000
2yearsl oan 3,400,000
Accumul ateddepr eciationonmachi nery 600, 000
Debent ur es 1, 400,000 Mot orv an 2,
400,000
Netpr of itbefortax 1,
640, 000 Corpor ati
ont ax 90,
000
Drawings 500, 000 Closingst ock
4,000,000
Otheri nf ormationav ailabl e
i
. I nsurancepr emi um noty etpai dwasshs3, 200,
000
ii
. Publ i
citypai di nexcesswasshs100, 000
i
ii
. Commi ssi oni ncomeout standingwasshs300, 000
i
v. Hewasadv i
sedt osetasi de5%ondebt orsasacont i
ngentf undt ocaterforbaddebts
v. Hewasal soadv isedt ocr eatea5%and10%aspr ov i
sionfordepr eciat
ionnbuil
dingson
costandmachi ner yont hebookv al
uerespect i
vely.
(
a)Youar erequi redt opr epareKYADONDOPAUL’ Strialbalance
(
b)Pr esenthisi ncomest atementandt hebalancesheet
(
c)Compui tehi s;
i. Aci dt estr ati
o
i
i. Equi t
yt odebt sratio
ii
i. St ockt ur nov erper iodi nweeks
QN5.Thef oll
owingt ri
al bal ancewast akenfrom thebookofARONDATRADERSLt datendof
thetradi ngper iod2014
Detail
s DR( shs000) CR( shs000)

St
ock1/
1/2014 6,
000

Pur
chase/
sal
es 36,
000 43,
000

Rent 3,
500

I
nsur
ance 3,
000

Baddebt
swr
it
tenof
f 2,
900

Pur
chasedi
scount 3,
000

Sal
esdi
scount 2,
000

Dr
awi
ngs 9,
000

Car
ri
ages 6,
000

Machi
ner
y(cost
) 20,
000

Bankov
erdr
aft 4,
500
Bui
l
dings 30,
000

Cashbal
ance 6,
000

Debt
ors 10,
000

Land 5,
000

Cr
edi
tor
s 20,
000

Commi
ssi
onr
ecei
ved 6,
000

Bankbal
ance 3,
000

Pr
ovi
sionf
orbaddebt
s 1,
000

Capi
tal 58,
000

Renti
ncome 1,
400

St
ati
oner
y 400

Ret
urns 1,
600

Tot
al 141,
400 141,
400

Addi
ti
onalinformat i
on
i
. St ockon31stwasv al
uedatshs8, 000,000
ii
. Rentoutst andi
ng shs700, 000
i
ii
. I nsuranceofshs500, 000r el
atestothey ear2015
i
v. Pr ov i
sionforbaddebt stobeincreasedby2%ofdebt or
s
v. Of fcar ri
agesshs2, 000,000isinrespectt osales
vi
. Depr eciat
eal lf
ixedasset sby5%p. aoncost
v
ii
. St ationeryofshs100, 000hasr emainedinstock
vi
ii
. Commi ssionout standingamount edtoshs4, 000,000whil
erentofshs200,
000was
receivedinadv ance
Requi r
ed
Prepar efi
nancial stat
ement sforkakat radersfortheperi
odended31.12.2014

QN6.Thef oll
owingbal
anceswereext
ract
edf rom ther
ecor
dsofkat ungi
’ nessasat31st
sbusi
December, 2009.
Parti
culars shs part
icul
ars shs
Sales 40,000,000 Purchases 35,000,
000
Salesretur
ns 500,000 Stock1.1.2009 10,
000,000
Provi
sionfordoubtf
uldebt
s1.1.
2009 80,000 Salari
esandwages
3,
000,000
Rates 600,000 Telephone
100,000
Shopf it
ti
ngs 4,000,000 Mot or
vanatcost 3,
000,000
Account sr ecei vabl es 980,000 Account spay
ables
700,000
Baddebt s 20,000 Capi t
al
17,
900, 000
Cashatbank 300,000 Drawings 1,
800,000
Purchaser et urns 620,000
Additi
onal informat ion
 Sal ar iesandwagesout standing shs500,000
 St ockasat31. 12.2009shs12, 000,000
 Pr epai drat es shs50, 000
 Thepr ovisionf ordoubt fuldebt stobei ncreasedt
o10%ofdebt ors
 Tel ephonebi lloutst andingshs22, 000
 Depr eciateshopf itti
ngsat10%perannum, andmotorvanat20%perannum oncost
REQUI RED
(a)Cal cul atethef ol
lowi ng
i
. Costofsal es
ii
. Gr osspr ofit
iii
. Netpr ofi
t
(b)Det er minet hev alueoft hefollowingitems
i
. Fi xedasset sowner ’sequity
ii
. Cur rentasset s
iii
. Wor kingcapi t
al r
ati
o
(c)comput eandi nterprett he
i
. Pr of itmar gin
i
i
. Av er agecr edi tper i
odf orpurchases( assume365day sinay ear)
QN7.Pr epar et hei ncomest atementandt hebal ancesheetforMUKHOOLIgi vent
hef ol
lowing
st
i
nformat ionasat31 August2013
Parti
culars Amount( shs)

Capi
atal 9,
260,
000

Longt
erml
oan 2870,
000

Machi
ner
y 5,
000,
000

Dr
awi
ng 2,
060,
000

Di
scountal
l
owed 60,
000

Rent 700,
000
El
ect
ri
cit
y 260,
000

Mot
orv
ehi
cles 7,
000,
000

Debt
ors 3,
000,
000

Cl
osi
ngst
ock 600,
000

Sal
esr
etur
ns 50,
000

Sal
es 12,
060,
000

Pur
chasesr
etur
ns 500,
000

Cr
edi
tor
s 2,
800,
000

Bankov
erdr
aft 140,
000

Bank 2,
500,
000

Cash 800,
000

Wagesandsal
ari
es 1,
000,
000

Pur
chases 4,
000,
000

Openi
ngst
ock 1,
500,
000

QN8.Thei nformat
ionbel owisext
ract
edf
rom t
hebooksofLAKEVI CTORI ATRADERSl
tdasat
st
31 December2011.
Cash 8,000 Capit
al 15, 700
Furnitur
e 30, 000 Debtor s 20,000
Creditors 13, 000 Machi nery 12, 000
Sales 90, 000 Purchases 75,
000
Stock1. 1.
11 10, 000 I
nsurance 2,000
Commi ssi
onr ecei
ved 8, 000 Ret
urni nwar
ds 1,
000
Carriageonsal e 4, 000 Rent 4,000
Returnout wards 33, 000 Di
scountreceived 3000

Addi
ti
onalinfor
mat i
on
I
. St ock31.12.2011 shs3,
000
II
. Rentaccr ued shs500
I
II
. I nsurancepr epai
d shs2,000
I
V. Makeapr ovi
sionforbaddebt sof5%ondebtor
s
V. Ont hedayofst ocktaki
ngt ocloset
het
radi
ngperi
od,
cashshs20,
000waswi
thdr
awnby
 theentrepreneurfrom thebusi nessf ropersonaluse.
Requir
ed
(a)Prepareat radi
ngpr ofi
tandl ossaccountf orl
akeVictoria
(b)Preparet hei
rbalancesheetasatt hatdate
QN7.Thet reasurerfort
het eacher’scant eeni nyourschoolpresent
edt
hef
oll
owi
ngf
inanci
al
stst
ement stothemember satt heirmeet ing
Teacher’
scant eenincomest atementf ortheperiodended31stDec2013
(Summar y)
Shs
Netsales 240,000,000
Lesscoatossal es 180, 000,000
Grossprofit 60,000,000
Lessoperationexpenses 25,000,000
Netprofit 35,000,000
Note
Theopeni ngst ockasatt hestartof2013wasshs23, 000,000

Teacher
’scant
eenbalancesheet
Asat31.12.2013

Part
icul
ars shs shs Fi
xedassets
Capi
tal 89,
000,000 Buil
ding 82,
000,
000
Addnetprofi
t 35,000,
000 Furni
tur
e 50,
000,
000
124,000,
000 curr
entassets
Lessdr
awi
ng 10,000,
000 St
ock 47,000,000
114,
000,
000 Debtors 38,
000,000
Longt er
ml i
abil
it
ies Bank 25,000,000
5yearsloanteacher
ssacco 72,
000,
000 Cash 18,000,000
Currentli
abi
li
ti
es
Bankov erdr
aft 34,
000,
000
Credit
or 40,
000,
000
260,
000,
000 260,
000,
000

Requi
red

(
a)Calcul
atethefoll
owing
I
. Gr ossprofi
tmar gi
n
II
. Netpr ofi
ttosales
I
II
. Netpr ofi
ttoowner ’
sequi
ty
I
V. Aci dtest
V. Stockt ur
nover
 VI. Fi xedassett urnov er
VI I
. Debtt oowner ’sequi t
y( gear ingrati
o)
(b)I nter pretthef ollowingr at i
osi nrel
ati
ont oaabov e
I
. Debtt oowner ’sequi t
y
II
. Netpr ofittsal es
QN8.Thef ol l
owingbal anceswer eobt ai
nedfrom ther ecordsofEKASENTERPRI SESLt dasat
31.12.2009.
Detai l
s shs Detail
s shs
Stock( 1. 1.2009) 1, 250,000 Stock31. 12.
2009 1,500,000
Purchases 7, 000,000 Ret urninwards 750,000
Retur nout war ds 45,000 Sales 13,000,000
Adv ertising 260, 000 Carriageonsales 95,000
Premi ses 6,000, 000 Tool sandequi pment 3,500,000
Credi t
or s 1,075, 000 Debt ors 1,500,000
Drawi ngs 150, 000 Capi t
al 7,
875, 000
Furnitur e 625,000 Sal ari
esandwages 875,000
Salesdi scount 187,500 Commi ssi
onr eceiv
ed 112,000
Electri
ci tybi ll
s 140, 000 Cash 60,000
Bankov erdr aft 465, 000 Tel ephoneexpenses 180,000
Requi red
I
. Ext ractat rialbal anceforEKASent erpri
sesLtdasat31. 12.2009
II
. Pr epar eat radingpr ofitandl ossaccountforEkasent erpri
sesLt dfort
hey earended
31. 12.2009
III
. Cal culatet henetpr ofi
tmar gi nandinter
pretther esults

QN9.Thef ol
lowi
ngt
ri
albal
ancewasextr
act
edfrom t
hebooksofMuwuli
zeTrader
son
31st/
12/2010
Detail
s Debi
t(shs000) Cr
edi
t(shs000)

Pr
emi
ses 1,
150

Tr
adedebt
ors 10

Tr
adecr
edi
tor
s 20

Mot
orcar 550

Pr
ovisionf
ordepr
eci
ati
onon 50
motorcar

Fur
nit
ureandf
it
ti
ngs 400

Provi
sionf
odepreci
ati
onon 4
fur
nit
ureandf
it
ti
ngs
Pur
chases/
sal
es 60 40

Ret
urns 5 6

Cashi
nhand 30

Cashatbank 70

Capi
tal 2,
155

2,
275 2,
275

Addi t
ionalinformat ion
st
- St ockon31 / Dec/ 2010wasv aluedatshs25,000
st
- Ther ewasnost ockon1 / Jan/ 2010
- Pr ov i
sionf ordepr eciati
ononmot orcarandfurnit
ureandfit
tingsweremadear at
eof
5%
Requi r
ed
a.Pr epar etradingpr ofitandl ossaccountandt hebalancesheetasat31st/12/2010
b.Cal culatet hef ol
lowing
i. Pr ofitmar gin
i
i. Wor kingcapi talratio
ii
i. Li quidfunds
QN10.Thef ollowingt ri
al balancewasext ract
edfrom thebooksofMuki saTradersasat
31st/Dec/2011
Details Debit( shs) Credit
(shs)

Capi
tal 3,
950,
000

Pur
chases/
sal
es 4,
300,
000 7,
500,
000

Landandbui
l
ding 1,
500,
000

Pl
antandmachi
ner
y 900,
000

Mot
orv
ehi
cle 600,
000

Wagesandsal
ari
es 890,
000

Rentandr
ates 430,
000

Mot
orv
ehi
vl
eexpenses 125,
000

Repai
rst
obui
l
ding 750,
000

Gener
alexpenses 355,
000
Di
scountal
l
owed 125,
000

Di
scountr
ecei
ved 107,
200

Debt
ors/
credi
tor
s 1,
300,
000 850,
000

Dr
awi
ngs 300,
000

Pr
ovi
sionf
ordepr
eci
ati
onon

- Pl
antandmachi
ner
y 450,
000

- Mot
orv
ehi
cles 292,
000

St
ockatst
art 750,
000

Bal
anceatbank 825,
000

13,
150,
000 13,
150,
000

Thefol
lowingaddi t
ional i
nformat i
onwasav ai
l
abl
e:-
st
i
. Cl osingstockon31 December2013wasv al
uedatshs850,000
i
i
. Pr ovidefordepreciationonpl antandmachineryatarateof10%oncostandmot or
vehicle20%onwr it
tendownv al
ue
ii
i
. Theexpendi tur
eonr epairstobuildi
ngist
obecapi t
ali
zedshs500,000
Requi
red
a.Pr epareani ncomest atementandt hebal
ancesheetfortheyearended31stDecember
2013.
b.Comput eandi nterpretthef ol
lowing
i
. Rat eorr et
urnoncapi talemployed
i
i
. Gr osspr of
itrati
o
ii
i
. Av eragecollecti
onper i
odf ordebtsinmonths

QN11.Bel
owi
sBYAMUGI
SHA’
STrial
balanceasat31stDecember2004
Par
ti
cular
s Debi
t(shs000) Credi
t(shs000)

Capi
tal 500,
000

St
ock1/
1/2004 50,
000

Pl
antandmachi
ner
y 500,
000

Mot
orv
ehi
cle(
cost
) 160,
000

Pr
ovi
sionf
ordepr
eci
ati
onon

- Pl
antandmachi
ner
y 40,
000
 - Mot
orv
ehi
cle 32,
000

Pur
chases 720,
000

Sal
es 1200,
000

Sal
esr
etur
ns 80,
000

Pur
chasesr
etur
ns 40,
000

Wagesandsal
ari
es 120,
000

Di
scounts 10,
000 8,
000

Car
ri
agei
nwar
ds 5,
000

Car
ri
ageout
war
ds 6,
000

Post
ageandt
elephone 15,
000

Wat
erandel
ect
ri
cit
y 17,
200

Baddebt
s 3,
000

Pr
ovi
sionsf
orbaddebt
s 2,
000

Gener
alexpenses 17,
000

Rentandr
atesb 30,
000

Debt
ors 110,
000

Cr
edi
tor
s 93,
200

Cashi
nhand 12,
000

Cashatbank 60,
000

Tot
al 1,
915,
200 1,
915,
200

Addit
ionali
nf ormat i
on
I
. Cl osingst ockon31stDec2004wasv al
uedat45,000,000
II
. Depr eciat
iont obechargedat20%ofcostofpl antandmachiner
yand40%ofmot
or
vehicles
I
II
. Accr uedr entisshs6,000,000andprepai
dratesshs2,000,
000
I
V. Out st andi
ngel ect
ri
cit
yisshs1,200,
000
V. Pr ovisionf orbaddebtsistobeincr
easedbyshs600, 000
Requir
ed
Prepar
ethet
radi
ngpr
ofi
tandl
ossaccountf
ort
hey ng31st/
earendi Dec/
2004andt
hebal
ance
sheet.

QN12.Thef
oll
owi
ngwasext
ractedf
rom t
hebooksofOlivaasat31st/
i Dec/
2002
Det
ail
s Debi
t(shs0 Credi
t(shs)

Stockasat 50,
000
st
1/ 01/2002

Pur
chases 420,
000

Sal
es 557,
500

Shopexpenses 6,
200

Wagesandsal
ari
es 33,
500

Rentpai
d 750

Tel
ephoneexpenses 500

I
nter
estpai
d 4,
500

Tr
avel
expenses 600

Pr
emi
ses 200,
000

Shopf
it
ti
ngs 40,
000

Debt
ors 10,
100

Bank 5,
850

Capi
tal 75,
000

Dr
awi
ngs 27,
000

Loanf
rom bank 150,
000

Cr
edi
tor
s 14,
500

Bankov
erdr
aft 2,
000

799,
000 799,
000

Not
e: ockat31st/
st 12/
2002wasv
aluedatshs42,
000
Requi red
Prepar eOl iv
ia’
stradi ngpr of
itandl ossaccountandbal ancesheetatatt hatdate
QN13.Thef ol
lowingt ransact i
onswer eobtainedfrom thebooksofMANJI NOHol di
ngson
st
31 / 12/ 2010
Sales shs3, 600,000 Purchases shs5,000,
000
Stock( 1st/01/2010) shs600, 000 Returnsout wards shs700,000
Retur nsi nwar ds shs800, 000 Carri
ageonsal es shs600,000
Gener al expenses shs300, 000 Debtors shs900,000
I
nsur ance shs 120, 000 Cashatbank shs760,000
Credi tors shs600, 000 Machi ner
y shs1,200,000
st
Stock31 / 12/2010 shs980,000 Furni
tureandf itt
ings shs480, 000
Adv ertising shs100, 000 Salar
iesandwages shs1,000,000
Drawi ngs shs400, 000 Cashi nhand shs240,000
Requi red
(a)Pr epareat radingpr of i
tandl ossaccountforMANJI ONOHOLDI NGSf ortheper
iod
st
endi ng31 / 12/ 2010
(b)Pr eparethei rbalancesheetasatt hatdate
(c)Comput eandi nter pret
I. St ockt urnov er
I
I. Av eragenumberofday sthestockwashel dbef or
esel li
ng
QN14.Thef ol
lowingt rial balancewasext ractedfrom thebooksofMANGEENOENTERPRI SES
asatt heendof31/ 06/2013
Detai l
s DR( SHS000) Cr( SHS000)

Pur
chases/sal
es 2,
000,
000 4,
900,
000

Capi
tal 1,
400,
000

Ret
urns 110,
000 140,
000

Baddebt
s 790,
000

Di
scount
s 80,
000 50,
000

St
ock1.
7.2013 570,
000

Debt
ors/
Credi
tor
s 1,
000,
000 1,
090,
000

St
ati
oner
y 420,
000

Car
ri
ageonpur
chases 85,
000

Sal
ari
es 400,
000

Dr
awi
ngs 300,
000
Mot
orv
ancost 8,
500,
000

Land 4,
565,
000

Cash 460,
000

Bank 2,
000,
000

Loan 11,
650,
000

Pr
ovi
sionf
orbaddebt
s 100,
000

I
nter
estr
ecei
ved 1,
000,
000

21,
280,
000 21,
280,
000

Additi
onalinformation
I. St ockonJune30th/ 2013wasv al
uedatshs100,000
I
I. Sal ariesinar rear
samount edtoshs20,000,
000
II
I. Fi xedasset sdepr eciat
eat10%perannum
I
V. Unusedst ationerywasshs20, 000,000
V. Accr uedinterestreceivabl
ewasshs40, 000,
000
VI. Decr easeinpr ovi
sionf orbaddebtswas20%ofdebt or
s.
Required
PrepareMangeeno’ sincomest at
ementandt hest
atementoff
inanci
alposi
ti
onasatt
hatdat
e.