Reference no: EM132981592

D Moody has the following assets and liabilities as on 31 April 2002:
Sh. Creditors 15,800 Equipment 46,000 Motor Vehicle 25,160 Stock 24,600 Debtors 23,080 Cash at bank 29,120 Cash in hand 160. During the first week of May 2002 Moody:
a. Bought extra equipment on credit for Sh.5,520.
b. Bought extra stock by cheque Sh.2,280.
c. Paid creditors by cheque Sh.3,160. d. Debtors paid Sh.3,360 by cheque and Sh.240 by cash. e. Moody put in extra Sh.1,000 cash as capital.

Required: a. Determine the capital as at 1st May 2002. b. Draw up a statement of financial position after the above transactions have been completed.

1. Determine which account is to be debited and which one to be credited
(a)J. Andrews bought a motor vehicle on cash
(b)Safety co. ltd sold goods on credit
(c)J. Andrews returned a motor vehicle to safety ltd (d) A proprietor paid Safety ltd a creditor from his private monie

2. Kananu has the following assets and liabilities as on 30 November 2002: Creditors Sh.39,500 ; Equipment Sh.115,000; Motor vehicle Sh.62,900; Stock Sh.61,500; Debtors Sh.57,700;Cash at bank Sh.72,800 and Cash in hand Sh.400. Compute the balance on the capital account as at 30 November 2002. During the first week of December 2002, Kananu: Added information:
a. Bought extra equipment on credit for Sh.13,800.
b. Bought extra stock by cheque Sh.5,700.
c. Paid creditors by cheque Sh.7,900.
d. Received from debtors Sh.8,400 by cheque and Sh.600 by cash.
e. Put in an extra Sh.2,500 cash as capital. You are to record the above transactions in respective accounts.

3. . Define an asset and show how they are classification giving examples for each class. 2.

4. Using both the horizontal convectional format and the vertical format, draw the statement of financial position for X Jones co. ltd

5. Write up the asset, capital and liability accounts in the books of M Crash to record the following transactions: 2002 June 1 Started business with Sh.50,000 in the bank. " 2 Bought motor van paying by cheque Sh.12,000. " 5 Bought Fixtures Sh.4,000 on credit from Office Masters Ltd. " 8 Bought a van on credit from Motor Cars Ltd Sh.8,000. " 12 Took Sh.1,000 out of the bank and put it into the cash till. " 15 Bought Fixtures paying by cash Sh.600. " 19 Paid Motor Cars Ltd by cheque Sh.8000. " 21 A loan of Sh.10,000 cash is received from J Marcus. " 25 Paid Sh.8,000 of the cash in hand into the bank account. " 30 Bought more Fixtures paying by cheque Sh.3,000.

6. Draw a cash book to show the transactions below for the month of October 2014 The opening balances were, cash £1426 and bank £1710 2. Paid £80 for postage by cash 4. Withdrew £200 for office use 6. Sold goods worthy £332 7. Purchased equipment by cash amounting to £772 8. Paid for general expenses by cheque £170 10. Paid X.Brown b cash amounting to £615 12. Sold goods worthy £1275 which was paid in cash 13. Deposited cash amounting to £1507 14. Paid insurance expenses b cheque £125 16. Paid Jack by cash amounting to £245 18. Paid motor expenses by cheque £200 20. Sold goods to Romney worthy £ 1250 26. Sold goods to V.Works ltd amounting to £700 30. Paid wages by cash amounting to £1400 31. Paid rental by cheque amounting to £200

7. Reddish ltd operates in the automotive industry buying and selling products on both cash and on credit basis. Below are transactions that occurred during the month of June 2014 2014June 1.Balance brought forward were £3,600 for cash and £ 2,172 for bank. 1. sold goods to KK ltd invoiced at £724 and allowed a discount of £41 by cheque 2. Deposited cash amounting to £ 1,522 5. Sold goods to Rome group of companies at £277 and allowed a discount of £7 10. Bought goods from Philip works at £355 and was offered a discount of £15 11. paid rent by cheque amounting to £ 673 12. Paid electricity bill amounting to £210 by cheque 14. Withdrew £650 for office use 16. Paid £153 for postage by cheque 17. Sold goods on cash at £1,200 with a discount of £20 to customers 21.Sold goods to James King amounting to £457 at a discount allowance of £17 24.Paid motor vehicle expenses by cash £442

8. Quickline maintains a petty cash in its ledger account. Below are the expenses incurred in the month of March 2013 2013 Mar 1.Received cash £9,400 2. paid postage expenses £615 5. Paid motor vehicle expenses £820 7. Purchased full scarps for £310 8. Paid £400 for petrol 9. Paid John a creditor £463 11.paid wages £1,200 13.paid travelling expenses £500 17.Purchased envelopes £375 20.Bought postage stamps £125 21.Sent e-mail at a cost of £804 24.Paid George a creditor £250 28.Paid wages £700 29.Bought stationery for £417 30.Paid wages £1,400 Required Prepare petty cash book.