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    Test 1 22.08.2014

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    lloydbwalya588
    The document discusses accounting concepts including stakeholders, accounting standards, assets, liabilities, capital, equity, revenue and capital expenditures. It also provides a list of transactions to record in ledger accounts over a period of time for a business.

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    Test 1 22.08.2014

    Uploaded by

    lloydbwalya588
    6 views2 pages
    The document discusses accounting concepts including stakeholders, accounting standards, assets, liabilities, capital, equity, revenue and capital expenditures. It also provides a list of transactions to record in ledger accounts over a period of time for a business.

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    © © All Rights Reserved

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    The document discusses accounting concepts including stakeholders, accounting standards, assets, liabilities, capital, equity, revenue and capital expenditures. It also provides a list of transactions to record in ledger accounts over a period of time for a business.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    6 views2 pages

    Test 1 22.08.2014

    Uploaded by

    lloydbwalya588
    The document discusses accounting concepts including stakeholders, accounting standards, assets, liabilities, capital, equity, revenue and capital expenditures. It also provides a list of transactions to record in ledger accounts over a period of time for a business.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    You are on page 1of 2

    1.

    For a large company, such as Shoprite Checkers, identify seven (7) types of stakeholder and
    explain their interests in the organisation. (7Marks)
    2. Explain the main purpose of accounting standards. (2marks)
    3. Briefly explain the following terms with an example:
    a) An asset, fixed asset and current asset. (6marks)
    b) A Liability. (2marks)
    c) Capital. (2marks)
    d) Equity. (3marks)
    4. Briefly differentiate revenue expenditure and capital expenditure. (4marks)
    5. State whether the following statements are true or false
    a) Drawings from a business can be treated as an expense. (1mark)
    b) Drawings from a business can also be made in the form of goods. (1mark)
    6. What is the difference between “trade” and “General” purchases? (2marks)

    7. The following balances were taken from the books of Robinson Nabulyato on 1st January:

    Cash in hand..................................K650, 000

    Cash at bank.............. ...................K3, 285,200

    Sundry debtors –A Akabondo...K253, 400

    S Banda K825, 000

    T Siwale K950, 000

    Sundry creditors – H Hantobolo K650, 000

    D Lombe K1, 000,000

    Office furniture...............................K750, 000

    Stock K2, 000,000

    Motor van K1, 800,000

    a) Required

    You are required to ascertain Robinson's capital, and prepare a statement of assets and liabilities.
    (6marks)

    b) Open the ledger accounts as of 1 st January, from the statement of assets and liabilities
    (4marks)

    c) For the period of January, the following transactions were completed

    Jan 3 Received cheque for K240, 000 in full settlement from A Akabondo

    4 Cash sales amounted to K680, 000

    S Banda paid K400, 000 on account by cheque.


    7 Paid H Hantobolo by cheque K620, 000 in full settlement.

    Gave cheque for K500, 000 part settlement of D Lombe's account.

    8 Banked K1,320,000

    Cash disbursements: Sundry expenses K25, 000

    Postage K12, 500

    Wages K50, 000

    Stationery K25, 000

    9 S Banda's cheque returned by bank, marked "R/D"

    Withdrew K200, 000 from bank for office use.

    12 S Banda gave cash to redeem his dishonoured cheque

    Cash sales to date K1, 000,000

    14 Banked K1,400,000

    15 Withdrew from bank for self, K250, 000

    17 Cash disbursements: Sundry expenses K15, 000

    Petrol and oil K30, 000

    Wages K75, 000

    Stationery K10, 000

    20 Purchased goods at auction sale for resale and paid by cheque K500,000

    22 Paid rent by cheque K250, 000

    Paid cash for repairs K50, 000

    25 Withdrew from bank for office purposes K200, 000

    Cash sales K1, 500,000

    Cash purchases K100, 000

    28 Banked K1, 500,000

    31 Paid salaries by cheque K500, 000

    Required

    In addition to the ledger accounts at the commencement of business on 1st January, open the
    appropriate ledger accounts and post the transactions for the period (20marks)

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