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Accounting
SUBSIDIARY BOOKS & LEDGER/TRIAL BALANCE
On 1st January 2018 Kijana Raburu commenced a retail business with Sh.270,000 in cash, a second-hand car worth Sh.252,000 and an office desk valued at Sh.18,000
The following transactions were recorded during the month of January:
1 Opened bank current account with Sh.180,000 cash
1 Paid office rent by cheques Sh.9,000
3. Bought goods for resale and paid by cheques Sh.67,500
4. Cash sales Sh.43,200, paid wages Sh.3,375 in cash
5. Sold goods to Alfred on credit Sh.36,000
8. Bought goods worth Sh.63,000 on credit from Thika Wholesalers, less 10% trade
Discount.
11 Cash sales Sh.18,000
11 Paid cash into bank Sh.13,500
13 Cash purchases Sh.40,500
Q1)Post entries into the ledger accounts, balance off the ledger accounts
On 1st January 2018 Kijana Raburu commenced a retail business with Sh.270,000 in cash, a second-hand car worth Sh.252,000 and an office desk valued at Sh.18,000
The following transactions were recorded during the month of January:
1 Opened bank current account with Sh.180,000 cash
1 Paid office rent by cheques Sh.9,000
3. Bought goods for resale and paid by cheques Sh.67,500
4. Cash sales Sh.43,200, paid wages Sh.3,375 in cash
5. Sold goods to Alfred on credit Sh.36,000
8. Bought goods worth Sh.63,000 on credit from Thika Wholesalers, less 10% trade
Discount.
11 Cash sales Sh.18,000
11 Paid cash into bank Sh.13,500
13 Cash purchases Sh.40,500
Q1)Post entries into the ledger accounts, balance off the ledger accounts
Accounting
Suppose Scarlett purchased a 3-year bond with the face
value of 20,000 in the primary market. The current risk-free interest rate was
0.25%, and a risk premium on that bond is 3%. A year later after collecting her
yearly coupon payment, Scarlett decided to sell that bond in the secondary market.
By that time, the economic situation has improved, and the risk-free interest rate
has risen to 1%. What is Scarlett’s rate of return for the one-year period she held
the bond?
value of 20,000 in the primary market. The current risk-free interest rate was
0.25%, and a risk premium on that bond is 3%. A year later after collecting her
yearly coupon payment, Scarlett decided to sell that bond in the secondary market.
By that time, the economic situation has improved, and the risk-free interest rate
has risen to 1%. What is Scarlett’s rate of return for the one-year period she held
the bond?
Accounting
bills of exchange
K owes ` 60,000 to Z. The debt is discharged by K on 1st June, 2016 by accepting two bills of exchange drawn on him by Z—one for ` 40,000 at 2 months and the other for ` 20,000 at 3 months. The first bill is endorsed in favour of R, a creditor, in full settlement of his debt for ` 42,000. The second bill is discounted with the
bank at 15% p.a. on 4th June. Both the bills were dishonoured, the noting charges in each case being ` 600. On 5th September, K agreed to accept another bill for the total amount including interest @ 18% p.a. payable after 3 months. On the due date the bill was dishonoured. K was declared insolvent and a final dividend@ 30% was realised from his estate.
Show the Journal entries in the books of Z and K.
Accounting
On 31 August 2018, Musk Traders purchased a machine on credit for a cost price of R402 500
(including VAT at 15%). Machinery is depreciated over six years according to the straight‐line basis
and there is no residual value on this machine, as it is highly specialised. Musk Traders has a
30 June year‐end.
Required:
Calculate the depreciation and accumulated depreciation for 2019 and 2020.
Round to the nearest Rand. Show all your workings
(including VAT at 15%). Machinery is depreciated over six years according to the straight‐line basis
and there is no residual value on this machine, as it is highly specialised. Musk Traders has a
30 June year‐end.
Required:
Calculate the depreciation and accumulated depreciation for 2019 and 2020.
Round to the nearest Rand. Show all your workings
Accounting
The owner took trading inventory for personal use. The selling price was R4 800 (VAT is
not applicable). The mark up is 50% on cost price. The transaction has not been
processed. The periodic inventory method is utilised by Central Perk Furniture Store.
3. The telephone and fax invoice for March 2020 of R2 430.15 has not yet been paid.
4. A debtor, C. Bing who owed R6 500 has been declared insolvent. The business received
35 cents on the Rand from the insolvent estate. This transaction must still be recorded.
The remaining balance may be written off as irrecoverable.
5. The allowance for credit losses must be adjusted to the amount of R1 600.
6. Insurance expenses for April 2020 have been prepaid. The monthly premium has
remained the same for the past two years.
not applicable). The mark up is 50% on cost price. The transaction has not been
processed. The periodic inventory method is utilised by Central Perk Furniture Store.
3. The telephone and fax invoice for March 2020 of R2 430.15 has not yet been paid.
4. A debtor, C. Bing who owed R6 500 has been declared insolvent. The business received
35 cents on the Rand from the insolvent estate. This transaction must still be recorded.
The remaining balance may be written off as irrecoverable.
5. The allowance for credit losses must be adjusted to the amount of R1 600.
6. Insurance expenses for April 2020 have been prepaid. The monthly premium has
remained the same for the past two years.
Accounting
On 31 August, M traders purchased a machine on credit for a cost price of R402 500 (including VAT at 15%). Machine is depreciated over 6 years according to the straight-line method and there is residual value on this machine. M traders has a 30 June year end. Calculate depreciation and accumulated depreciation for 2019 and 2020
Accounting
In a trading scenario where E.R. in between USD and INR is 1$=75₹, an Indian trader who’s industry is expert in the production of A-class quality tea has signed an export contract with an American trader. This involves transaction of 1,80,000$ by foreign trader to Indian trader. By analysing this situation kindly explain the concept of hedging with the point of view of both the traders means how they can save themselves from currency risk associated with this trade by using forward market hedging. Suppose the Indian trader is expecting a depreciation of USD(1$=70₹) and US trader is expecting an appreciation of INR (1$=80₹).
Accounting
Pulse, a dance club, saw a $40,000 drop in revenue during 2020 due to the Covid-19 virus. How will this affect the 2020 incomes statement, balance sheet, and statement of cash flows? What if anything will be affected and by how much?
Accounting
differetiate between the two types of accounting system for inventory
Accounting
The following information is also available:
a. A review of insurance policies showed that P6,800 is unexpired at the year-end.
b. An inventory of cleaning supplies showed P12,440 on hand.
c. Estimated depreciation on the building for the year is P128,000.
d. Accrued interest on the mortgage payable is P10,000.
e. On Sept. 1, 2020, the entity signed a contract, effective immediately to Asian Hospital to dry clean, for a fixed monthly charge pf P4,000, the uniforms used by some doctors in surgery The hospital paid for four months' service in advance.
f. Salaries are paid on Saturdays. The weekly payroll is P25,200. Assume that Sept. 30, 2020 falls on a Thursday and the entity has a six-day pay week.
Required:
Prepare adjusting entries
a. A review of insurance policies showed that P6,800 is unexpired at the year-end.
b. An inventory of cleaning supplies showed P12,440 on hand.
c. Estimated depreciation on the building for the year is P128,000.
d. Accrued interest on the mortgage payable is P10,000.
e. On Sept. 1, 2020, the entity signed a contract, effective immediately to Asian Hospital to dry clean, for a fixed monthly charge pf P4,000, the uniforms used by some doctors in surgery The hospital paid for four months' service in advance.
f. Salaries are paid on Saturdays. The weekly payroll is P25,200. Assume that Sept. 30, 2020 falls on a Thursday and the entity has a six-day pay week.
Required:
Prepare adjusting entries
