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CH10.doc - UNIVERSITY EXAMINATIONS: 2019/2020 SCHOOL OF...

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UNIVERSITY EXAMINATIONS: 2019/2020SCHOOL OF BUSINESS AND PUBLIC MANAGEMENTEXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE ANDBUSINESS MANAGEMENTACC 1204: INTRODUCTION TO ACCOUNTING IIDATE: DECEMBER, 2020INSTRUCTIONS: Answer All QuestionsQUESTION ONEJenga Mali, a proprietor of a grocery and general store has not previously engaged an accountant.He informs you that this year his bankers have insisted on a proper set of accounts. Jenga Malisupplies you with his trading results for the year ended 30 June 2019which are as follows:Payment for goods4,747,500Takings5,465,000Payment for expenses565,000Profits152,5005,465,0005,465,000Jenga Mali instructs you to examine his records and prepare accounts. From your examination ofthe records and interview with your client, you ascertain the following information:1.The takings are kept in a drawer under the counter; at the end of each day the cash is countedand recorded on a scrap of paper; at irregular intervals Mrs. Jenga Mali transcribes thefigures into a notebook; a batch of slips of paper was inadvertently destroyed before thefigures had been written into the notebook, but Mr. And Mrs. Jenga Mali carefully estimatedtheir takings for that period, and the estimated figure is included in the total of Sh.5,465,000.2. Mr. Jenga Mali involved himself in betting for 30 weeks of the year, spendingSh. 500 per week with cash taken from the drawer. His winnings totaled Sh. 29,500.2.The following balances are ascertained as correct:
30 June20192018Sh ‘000’Sh ‘000’Cash in hand43,50022,500Balance at bank109,50078,000Sales debtors245,500229,000

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Term
Fall
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Tags
Balance Sheet, Debt, Generally Accepted Accounting Principles, Mr Jenga Mali, Jenga Mali

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