Accountancy Quiz – 4
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Write short notes on the following:-
a) Accounting cycle
b) Credit note
c) Trade discount
d) Accrual concept
e) Errors of complete reversal
Janeth rents premises at a rental of Tshs 1,800,000/= per annum. He sublets part of premises to Kavishe at Tshs. 540,000/= per annum and another part to Kinabo at Tshs. 360,000/=
On 1st January 2012 Janeth had paid his own rents up to date. Kavishe rent was three months in arrears and Kinabo had paid his rent 31st March, 2012.
During the year 2012 Janeth paid his rents at the end of each Quarter excepts for the amount due to 31st December 2012, which was outstanding.
Janeth received the following amount from Kavishe 31st January Tshs. 270,000/=, 1st April 135,000/=, 8th July 135,000/= and 6th December Tshs. 270,000/= Janeth received the following amount from Kinabo 12th October, 2012 Tshs. 180,000/=
Required: Show the account for;
a) Rent Payable
b) Rent Receivable.
The balance sheet of Mr. Magutu Enterprises Ltd as at 31st March, 2012 included trade debtors of Tshs. 1,621,840/=. The account for year ended 31st March 2012 included a provision for doubtful debts and provision for discount allowed at 31st March 2012 of 3% and 5% respectively of the balance outstanding from debtors.
During 2012/2013 the enterprises sales totaled Tsh. 11,360,000/= of which 10% in value, were on cash and Tshs. 10,203,000/= was received from credit customers in clearing of debts totaling Tshs. 10,300,000/=
In addition Tshs. 60,000/= was received from S. Mpoki in settlement of adibt which had been written off as bad in 2011/2012. This receipt has been credited to S. Mpoki’s account in the debtor’s ledgers. On 31/3/2013 the following outstanding debts were written off as bad.
Massanja Tshs. 120,000/= and Joti Tshs. 40,000/=
Enteries relating to bad debts and discounts are passed through its provisions accounts whose balance at 31st March, 2013 is to be 3% for provision for doubtful debts and 5% for provision for discount allowed of the amount due to the enter prices from debtors at that date.
(i) Write up the provisions account for the year ended 3 March 2013 bringing the balance as at 1st April, 2013.
(ii) Write up the debtors account to compute the amount to be shown as trade debtors in the enterprises balance sheet at 31 March 2013.
(iii) Prepare the balance sheet extract to show the treatment of the item in equation at 31 March 2013.
(a) Update the accounting equation on every transactions made by Mr. Kimambo as given below in form of Assets = Capital + Liabilities.
(b) Show the effect of transactions on total assets, total liabilities and owners equity of the business entity for each transaction.
(a) Owner invested cash in the business.
(b) Purchased office equipment on credit.
(c) Paid electricity consumed during the period.
(d) Obtained a loan from the bank for business use.
(e) We pay a creditor by cheque.
(f) Bought furniture for cash.
(g) Sold goods on credit to Mr. Kavishe.
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