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For Question 3 answer only one question, either 3A or 3B; not both. Write the answers in the spaces provided for each question or part of the question. 1 (2) __Foreach of the following transactions, name the source document that will be used to record the information. (i) Sold goods on credit. (ii) Credit customers returned goods to the business. (ili) Withdrew cash from the current account for salaries and wages. (iv) Purchased motor vehicle on credit. @ qi) Gil) (iv) (b) The following transactions relate to the business of Fyumbu, for the month of December 2020. 2020 April 1 Petty Cash balance 20 150.00 1 The Petty Cashier presented vouchers to the Cashier and obtained cash to restore the imprest K19 850.00 5 Bought stamps K2 000.00 7 Paid taxi fares K4 000.00 19 Bought envelopes K1 500.00 25 Received cash for personal telephone calls K5 000.00 27 Bought petrol K12 500.00 27 Paid cash for sugar K500.00 Required With the following analysis columns: Postage, Stationery, Transport and General. Prepare Fyumbu’s Petty Cash Book and balance it off.PTT Lt rt tet re extracted from the books of TC Bakery. You lance on 30 October 2020 with its correct Page 4 of 19 The following list of balances wel (©) Tre required to prepare a Trial Bl heading. K N Gross Profit 122 800.00 Sundry Expenses 84 640.00 ae 26 500.00 Bank 9,000.00 Stock 01/11/2019 14 700.00 Cash 2100.00 Premises 90 000.00 Drawings 16 600.00 Bad Debts 2,500.00 Capital 103 040.00 Bank Overdraft 8 200.00 Creditors 22 500.00 Provision for Doubtful Debts 1,900.00 ‘Stock 31/12/2020 12 400.00 ‘Centre Number Examination Number Page 4 of 19 (©) The following list of balances were extracted from the books of T C Bakery. You are required to prepare a Trial Balance on 30 October 2020 with its correct heading, KON Gross Profit 122 800.00 ‘Sundry Expenses 84 640.00 Debtors 26 500.00 Bank 9000.00 Stock 01/11/2019 14 700.00 Cash 2100.00 Premises 90 000.00 Drawings 16 600.00 Bad Debts 2,500.00 Capital 103 040.00 Bank Overdraft 8 200.00 Creditors 22 500.00 Provision for Doubtful Debts 1,900.00 Stock 31/12/2020 12 400.00Page 6 of 19 (a) 2 @ (b) Examination Number Poe Capital Expenditure and Revenue pital Expenditure and one example of What do you understand by the terms Expenditure? Give two examples of Cay Revenue Expenditure. (i) Capital Expenditure (ii) Revenue Expenditure .. (5] [Total: 22 marks] State whether each of the following statements is True or False. The ledger is a book of original entry. A cash withdrawal from the business by the trader should be credited to drawings account. (iii) When the debit side of an account is greater than the credit side, the account shows a debit balance. (iv) Real account always shows a debit balance. (iv) - [4] Fufuza Cultural Group charges K200.00 as Annual Subscription to its members. Members are allowed to accrue their subscriptions and pay in advance. On 1 January 2020, 10 members had not yet paid their subscriptions for the year 2019. In December 2019, 4 members paid KB00.00 for the year 2020, during the year 2020 the group received K145 200.00 in cash for subscriptions. For 2019 K 4000.00 2020 K138 400.00 2021 K_2800.00 K145 200.00 As at December 2020, 5 members had not paid their 2020 subscriptions. You are required to prepare Fufuza Cultural Group's Subscriptions Account. Princip of Accounts/711072 2 0 2 3Camere Saodaicic mull CTT TT Page 7 oF 19 2 &) : yoy ic} (©) __ State two methods of depreciating Fixed Assets. a (i) (2) (a) Acompany's financial year ends on 31 December each year. On 1 January 2015, three machines were purchased for K150 000.00 each, paid by cheque. These machines were to be depreciated by 10% equal instalments. On 31 January 2017, one of the machines was sold for K130 000.00 by cheque, ignoring any depreciation in the year of sale. Required: (i) Prepare the Machinery Account for the first three years. (ii) Prepare the Machine Disposal Account. Principles of Acsounts/7110/2 2 0 2 3 [Tum overExamination Number LLL | LL Page 9 of 19 EITHER 3AM. Chilombo prepared a Trial Balance on 31% August 2020. The Trial Balance did not agree. She opened a Suspense Account. Upon investigations from the books of accounts, she found the following errors:~ 1 Motor van expenses K1 500.00 had been debited in the Bank Account and credited to the Motor Van Expenses account. 2 Salaries and Wages K2 400.00 had been debited in the Drawings Account. 3 Goods returned to Tabu Suppliers K1 785.00 had been wrongly recorded in the Returns Outwards Journal as KB85.00. 4 Discount received total in the Cash Book K204.00 had not been entered in the Discount Received Account. 5 Commission Received K375.00 had been entered in the Commission Received Account as K735.00. Required: (Mention the type of errors in 1 and 2. 2] Prins of Accounts 1072 2 0 2 3 [Turn overReboot eo hentia (iii) Prepare the Suspense Account after the correction of errors. LL —— — = — ___,—| i: [4] (iv) _ Liyanda Jakopo's Bank account in the cash book had the following transactions for the month of November 2020. Cash Book (Bank Account) Date [Details |F |DR Date | Details Je K N | |K N Novi | Balance | b/d 1200/00 | Nov3 | Liyanda | 1800 | 00 12 | Champuta 4500/50 | 19 | Sinkala 5.400 | 50 24 | Kalandanya 1200 | 90 22 | Dimuna 21 000 | 90 29 | Luumbula 21500|00 | 30| Balance | c/d | 11 000 | 00 39 201 | 40 { 39 201 | 40 The Bank Statement received for the same month of November 2020 revealed the following details recorded by the bank.€& z= 02 ‘ZO1 Lessuncoay 0 sepdotti fee] (e) -sougjeg quawearers sue ALA pue BOUEIeG 00H USE) PapuEWe ay) UEENTAG aoualeyyp ayy aju02e! 0} Buipeay 1951109 1p tAIM aWIDIE'S e a1edoid —_(q) “yoog yseo ay; aepdy = (e) 303 paunboy [os!oor6 | 00|oost | puapinia | oF \ | eAuepueley 0S | O0E 06 | o0z —anbauo piedun | gz | Ov | 10S 8 06 | 007 T eAuepueey | 97 05 | 00€ 00 | 00% s Breyuis | 62 0S | 002 ZT 00 | 000 z quau s9puo s,reueg | 17 0S | 002 bt 00 | 00g t epuedy | ZT os} 00s er | 0s | 00s & eynduiny | $4 00 | 00021 ‘souejeg | T AON \N aN ot L____22ueled | __ sidresey syed | aed quoweeas yueg [TTT ET we ers0z1 26eq soquunyy uogouns iaPage 14 of 19 oR 3B (i) 2020 June 1 June 30, Required: Genie Number TTT Debtors balance Creditors balance Credit sales’ for the month Credit purchases Cash purchases Cash sales Sales returns Purchases returns Cheques received from Debtors Cheques paid to Creditors Discount Allowed Discount Received Contra of sales and purchases Ledger balance Interest charged to customers on delayed accounts Interest charged by suppliers on unpaid accounts TTT TTT Examination Number ‘The following information was obtained from the books of K. Chyaze. « 7190 4120 46 300 29 900 14.360 29 750 1070 38 900 28 100 1.060 760 sssssssssess 8 90 ss 100 Prepare the Sales Ledger Control Account only using the above information. Principles of Accounts? 102 SBEASnmsearte ee LE re (i) M Muleya provided the following for the year ended 31 December 2020. Sales k168 000.00 Stock 1 January 2020 20 000.00 Stock (31 December 2020) 16 000.00 Purchases K122 000.00 Debtors K24 500.00 Creditors K35 000.00 Bank K1 500.00 Dr Capital 100 000.00 Using the information provided you are required to calculate; (a) Cost of goods sold [2%] (b) Gross profit/sales percentage 13] (c) Rate of stock turnover By) Peneipios of Accounts? 1072 2 0 2 3“CEE LEE pase tort (d) Working capital ratio (current ratio) [3] (e) Creditors/purchases ratio [2] [Total: 22 marks] Section B ‘There are two (2) questions in this section, 4(a) and 4(b). Answer only one question from this section on the Answer Booklet provided. Answer either 4(a) or 4(b) not both. Either 4 (@) —Choolwe and Bwale are in partnership in a small business. They share profits and losses in the ratios 3:1 respectively. The following balances were extracted from their partnership books on 31 December 2020, Capital accounts 1/1/2020: KOON Choolwe 100 000.00 Bwale 40 000.00 Drawings: Choolwe 17 500.00 Bwale 12 500.00 Current Accounts: Choolwe 5 000.00 Cr Bwale 3000.00 Cr Debtors 45 200.00 Creditors 54 200.25 Warehouse Wages 32 000.00 Office Salaries 15 000.00 Stock 1/1/2020 63 340.00 Purchases 104 720.00 Sales 222 320.75 Returns inwards 3610.00 Returns outward 5 470.25 Bank 26 410.00 PPhocples of Account/7 11072 220 gQc< [Turn overa Number Examination Number Pope taore LITT ITT TTT Cash 1420.25 Light and Heat 4700.00 Rates 2480.00 Freehold Premises 65 000.00 Furniture and Fitting 14 400.00 Motor Vehicles 16 000.00 Stationery 1560.75 ‘Sundry Expenses 640.00 Postage and Telephone 1360.00 Insurance 600.50 Discount Allowed 2 480.00 « Discount Received 4260.75 Provision for Bad Debts 1250.00 Bad Debts 720.00 Motor Vehicles Expenses 3 860.50 Additional information on 31 December 2020: 1 ‘Stock at 31 December, 2020 was valued at K44 000.00 2 Depreciation to be charged as follows: Fixtures and Fittings at 15% and motor vehicles at 10%, both on cost. = Light and Heat to be apportioned as follows: Warehouse 4 office 4 3 s 4 Rates to be apportioned as follows: 3 1 warehouse — office —. 4 4 Rates of K640.00 were prepaid. 6 ‘There was Unexpired Insurance of K100.00 on 31 December 2020. 7 Provision for Bad Debts to be adjusted to 5% of Debtors on 31 December 2020. 8 5% interest is allowed on partners’ capital and a salary of K10 460.00 is awarded to Bwale. Required to prepare: (2) The Partnership Trading and Profit and Loss Account. [16%] (ii) The Appropriation Account. BI (iii) Partners’ Current Accounts [5%] (iv) _ Partners’ Balance Sheet [9] (Total: 34 marks] Principles of Aceounts/71 10/2 2 02 3Cenire Number | Examination Number LTTE TTT TTT ttre 4B or Page 19 of 19 Tumani Tennis Club begins its social year on 1 January, 2020, the Treasurer provided a list of items at the start of the year as follows: K Bank Balance 304 000.00 Sports Equipment 400 000.00 Club House 15 000 000.00 Land 2.000 000.00 At the end of the social year, 31 December 2020, the Treasurer prepared the club’s Receipts and Payments Account as follows: Receipts and Payments Account for the period ended 31 December 2020. Receipts K N Payments Bank balance b/f 304000 00 Sports equipment ‘Subscriptions 400000 00 Tennis balls Subscription in advance 55.000 00 Hire of courts Refreshment sales 91000 00 Light and Heat Dance tickets 25000 00 General expenses Tournament fees 72000 00 Refreshment Purchases Donations 30000 00 Club House improvements Bank balance c/d 977000 00 K N 108.000 00 30000 00 230000 00 35000 00 140000 00 60000 00 350000 00 00 00 The following information was available on 31 December 2020 and was to be taken into account before preparing the Club’s Financial Statements. (1) Stock of refreshments K27 000.00 (2) Subscriptions owing K150 000.00 (3) Electricity bill owing K35 000.00 (4) Sports equipment to be depreciated by K58 000.00 (5) _ Bill for refreshment purchases was due K12 000.00 Required: (2) Accumulated Fund at 1/01/2020 (i) Refreshment Trading Account for the year (ili) Subscription Account (iv) _ Income and Expenditure Account for the year (v) Balance sheet at the end of the year. Principas of Accounts/711072 2 0 2 3 BY] [4%] Gl [8%] [14%] [Total: 34 marks]