END OF TERM I 2018 EXAM

S.5 ENTREPRENEURSHIP EDUCATION

P230/2
TIME : 1 HOUR 30 MINUTES
INSTRUCTIONS
- Answer ALL questions

1. The following information appeared in the books of DMC Limited for the month of
January 2017.
January 1st Started business with cash at hand shs. 400,000
1st more capital in form of a cheque was invested shs. 200,000
3rd Bought a motorcycle to facilitate transport shs. 700,000 by
cheque.
4th Paid for rent by cash shs. 150,000
5th Paid for carriage inwards by cheque shs. 500,000
8th Purchased goods worth 1,500,000 paying shs. 500,000 by cash
and the balance was paid by cheque.
12th Bought furniture by cheque shs. 70,000.
14th Sold goods to Mukama worth 2,000,000 shillings receiving
shs. 1,000,000 by cash, 500,000 by cheque and the balance to be
paid after two months.
20th Paid for electricity by cheque shs. 155,000 and transport by cash
shs. 30,000.
29th Bought goods on credit from A.K.A Ltd worth shs. 650,000.
31st Paid for salaries and wages by cheque shs. 900,000 by cheque.

Required:
Post the above information in the relevant ledger accounts.

2. You own a concrete brick laying project in your home area.

(a) Prepare a sign post for the business. (05 marks)
(b) Write a purchase order for the different items you need to produce the bricks.
(08 marks)
(c) Write an invitation letter to the L.C.1 chairperson to come and attend the
official launching of your business. (07 marks)
(d) Prepare a receipt to one of your customers for the bricks purchased.
(05 marks)
END