90.2K

Verified Solution

Link Copied!

(c) Ann advanced Linda through a note receivable for Ksh. 400,000 at an interest of 16% p.a on 1.4.2023. The note receivable matures on six months. Required Prepare the journal entries at inception and maturity of the note receivable (4 marks) QUESTION THREE (a) On 1st April 2022. ken invested in marketable securities of 2000 ordinary shares at ksh. 200 per share from KaziKazi Co. Itd. He paid brokerage commission of ksh. 40,000. Required; Journal entries for; (i) Investment made on 1.4 .2022 (ii) Dividends received on 30th September 2022 at 10% (iii) Disposal of 50% of the marketable securities sold on 30.4 .2023 for sh. 300 per share and paid sh. 60,000 brokerage commission. (6 marks) (b) (i) Briefly explain four methods available in valuation of inventory (ii) the following data is provided by Kelly for the month of September 2023 Required (i) Prepare the store card using the following methods (a) First in First Out (FIFO) (b) Simple Average Method (ii) Trading account using above methods (iii) Comment on the results (14 marks) The following data is provided by Jelly Traders for the last four years ending 30th September 2023. Required Prepare the following accounts for the four years (a) Total debtors Account (b) Bad debts account (c) Bad debts recovered account (d) Income statement (extract) (e) Statement of financial position (extract) (20 marks) QUESTION THREE a) On 1st April 2022. ken invested in marketable securities of 2000 ordinary shares at ksh. 200 er share from KaziKazi Co. Itd. He paid brokerage commission of ksh. 40,000. The following data is provided by Jelly Traders for the last four years ending 30th September 2023. Required Prepare the following accounts for the four years (a) Total debtors Account (b) Bad debts account (c) Bad debts recovered account (d) Income statement (extract) (e) Statement of financial position (extract) (20 marks) QUESTION THREE a) On 1st April 2022. ken invested in marketable securities of 2000 ordinary shares at ksh. 200 er share from KaziKazi Co. Itd. He paid brokerage commission of ksh. 40,000. (c) Ann advanced Linda through a note receivable for Ksh. 400,000 at an interest of 16% p.a on 1.4.2023. The note receivable matures on six months. Required Prepare the journal entries at inception and maturity of the note receivable (4 marks) QUESTION THREE (a) On 1st April 2022. ken invested in marketable securities of 2000 ordinary shares at ksh. 200 per share from KaziKazi Co. Itd. He paid brokerage commission of ksh. 40,000. Required; Journal entries for; (i) Investment made on 1.4 .2022 (ii) Dividends received on 30th September 2022 at 10% (iii) Disposal of 50% of the marketable securities sold on 30.4 .2023 for sh. 300 per share and paid sh. 60,000 brokerage commission. (6 marks) (b) (i) Briefly explain four methods available in valuation of inventory (ii) the following data is provided by Kelly for the month of September 2023 Required (i) Prepare the store card using the following methods (a) First in First Out (FIFO) (b) Simple Average Method (ii) Trading account using above methods (iii) Comment on the results (14 marks) The following data is provided by Jelly Traders for the last four years ending 30th September 2023. Required Prepare the following accounts for the four years (a) Total debtors Account (b) Bad debts account (c) Bad debts recovered account (d) Income statement (extract) (e) Statement of financial position (extract) (20 marks) QUESTION THREE a) On 1st April 2022. ken invested in marketable securities of 2000 ordinary shares at ksh. 200 er share from KaziKazi Co. Itd. He paid brokerage commission of ksh. 40,000. The following data is provided by Jelly Traders for the last four years ending 30th September 2023. Required Prepare the following accounts for the four years (a) Total debtors Account (b) Bad debts account (c) Bad debts recovered account (d) Income statement (extract) (e) Statement of financial position (extract) (20 marks) QUESTION THREE a) On 1st April 2022. ken invested in marketable securities of 2000 ordinary shares at ksh. 200 er share from KaziKazi Co. Itd. He paid brokerage commission of ksh. 40,000

Answer & Explanation Solved by verified expert

See Answer