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What is the impact on equilibrium price and quantity in the market
if the cost of producing them increases
What are the ten key factors of the importance of the banking industry? 10marks
On 1 Jan 1998, the Katito Sand Co sent to M. Mutiso 1,000 tonnes of sand the pit cost being Sh100 per tonne. The company paid Sh10,000 towards freight and insurance. Mutiso took delivery of the consignment on 10th January 1998 and immediately accepted a bill drawn on him for Sh50,000 for 2 months. On 31st March (when the company’s books are closed) the consignee reported that:
i) There was a shortage of 50 tonnes on the whole consignment due to loading and unloading;
ii) 800 tonnes were sold at sh130 per tonne
iii) He had incurred the following expenses:
- Godown rent Sh500
- Insurance Sh500
- Selling expenses Sh1,000
iv) He had deducted his commission (4% of sales) and remitted the balance due by bank draft on 31 March 1998.
Required: Show the necessary accounts in the books of Katitu Sand Co. to record the above transactions.
Analyse each of soldiers statement and indicate to him the effect on the accounting equation.
1.Paid R48 000 to SARS as a second provisional tax payment
2. Bought back 70 000 shares from the deceased estate of a shareholder at 65 cents per share above the average share price
3.A final dividend of 14 cents per share was declared on the 1 140 000 issued shares on 28 February 2021
4. The directors fees of two members earning R300 000 each are outstanding at the end of the accounting period
What is the Marshall-Lerner condition for a stable foreign exchange market? For an
unstable market? For a depreciation to leave a nation’s Balance of Payment unchanged?
Explain expenditure-changing and expenditure-switching policies. Using the swan diagram, explain how these policies can be used to achieve external and internal balance.
Lisa Eriksson is a sole trader and runs a shop selling porcelain garden pots. When she started three years ago, she bought SEK 400,000 worth of inventory. She expects to use the inventory for a total of 8 years. The rent for the premises is SEK 7000 per month and the operating costs for electricity, offices, etc. are about SEK 3000 per month. This year she expects to have a purchase of goods of 800 000 SEK. She values the stock at the beginning of the year at SEK 100 000 and at the end of the year the stock could be worth SEK 200 000. The year's interest costs amount to SEK 20 000. She estimates other costs at SEK 80 000. Sales for the year are estimated at SEK 1 800 000.
a) What will be the result for the year?
b) What will the result be enough for?
Maria makes and sells exclusive scented candles. Each scented candle uses half a litre of stearin. The stearin costs SEK 100 per litre and the fragrance costs SEK 10 per candle. She then sells the candles for SEK 200 each, excluding VAT. Maria pays SEK 30,000 a month for rent and other costs.
a) Calculate the result if Maria makes and sells 4 600 candles a year.
b) Calculate the break-even point for Maria's candle production.
c) The company's current volume is 4 600 candles, calculate the margin of safety.
d) How many candles does Maria have to produce and sell in order to make a profit of SEK 300 000 per year?
On June 5 of the current year, Adam established an interior decorating business, AA Designs. During the remainder of the month, Adam completed the following transactions related to the business. June 5Adam transferred cash from a personal bank account to an account to be used for the business, $18,000
- Paid rent for period of June 6 to end of the month $2,000
-Purchased office equipment on account $10,500
-Purchased a used truck for $18,000, paying $10,000 cash and taking a bank loan for the remainder
-Purchased supplies for cash $1,315
-Received cash for job completed $7,300
- Paid annual premium on property insurance $1,200
Requirement: Journalise the transactions during the month.
Lolita S,an architect, opened an office on March 1 of the current year. During the month she completed the following transactions connected with her practice
a. Transferred cash from a personal bank account to an account to be used for the business, $15,000
b. Paid March rent for office and workroom $2,000
c. Purchased used car for $11,500, paying $2,500 cash and took a bank loan for the remainder
d. Purchased office and computer equipment on account $5,500
e. Paid cash for supplies $750
f. Paid cash for annual insurance policies, $1,050
g. Received cash form client for plans delivered, $3,100
h. Paid cash for miscellaneous expenses $75
i. Paid cash to creditors, $2,950
j. Paid installment due on the bank loan $400
k. Received invoice for printing service, due in April, $525
l. Recorded fee earned on plans delivered, payment to be received in April, $4,150
m. Paid salaries of assistant $1,200
n. Paid petrol and repairs on car for March $150
