The following trial balance was taken from the books of DRC Biz on 30th June2018.Dr. Cr.Shs. Shs.CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 6ISO 9001:2015 Certified by the Kenya Bureau of StandardsDrawings 200,000Purchases and sales 7,132,000 9,230,000Wages and salaries 423,000Cash at bank 60,000Cash at hand 7,000Debtors and creditors 700,000 582,000Capital 2,000,000Stock 1st July 2017 533,000Electricity and telephone 140,000Premises at cost 1,000,000Office expense (including stationery) 95,000Provision for bad & doubtful debts,1st July 2017 10,000Rates and insurance 124,000Bad debts written off the year 29,000General expenses 144,000Motor vehicles running expenses 384,000Motor vehicles at cost 480,000Furniture & equipment at cost 450,000Provision for depreciation on motor vehicles 39,000Provision for depreciation on furniture& equipment 50,000Returns inwards and outwards 230,000 100,00012,071,000 12,071,000CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 7ISO 9001:2015 Certified by the Kenya Bureau of Standardsb) Prepaid insurance amounted to Shs. 31,000 and unused stationery toShs. 16,000 on 30th June 2018c) Provision of bad debts should be adjusted to 2 % of debtorsd) 20% depreciation should be provided on the cost of motor vehicles and12½% on the book value of furniture and equipment.e) The stock on 30th June 2018 had a cost value of Shs. 565,000.Required:-a) Trading Account (6 marks)b) Profit and Loss Account (8 marks)c) Balance Sheet (6 marks)*END*CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 8

The following trial balance was taken from the books of DRC Biz on 30th June2018.Dr. Cr.Shs. Shs.CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 6ISO 9001:2015 Certified by the Kenya Bureau of StandardsDrawings 200,000Purchases and sales 7,132,000 9,230,000Wages and salaries 423,000Cash at bank 60,000Cash at hand 7,000Debtors and creditors 700,000 582,000Capital 2,000,000Stock 1st July 2017 533,000Electricity and telephone 140,000Premises at cost 1,000,000Office expense (including stationery) 95,000Provision for bad & doubtful debts,1st July 2017 10,000Rates and insurance 124,000Bad debts written off the year 29,000General expenses 144,000Motor vehicles running expenses 384,000Motor vehicles at cost 480,000Furniture & equipment at cost 450,000Provision for depreciation on motor vehicles 39,000Provision for depreciation on furniture& equipment 50,000Returns inwards and outwards 230,000 100,00012,071,000 12,071,000CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 7ISO 9001:2015 Certified by the Kenya Bureau of Standardsb) Prepaid insurance amounted to Shs. 31,000 and unused stationery toShs. 16,000 on 30th June 2018c) Provision of bad debts should be adjusted to 2 % of debtorsd) 20% depreciation should be provided on the cost of motor vehicles and12½% on the book value of furniture and equipment.e) The stock on 30th June 2018 had a cost value of Shs. 565,000.Required:-a) Trading Account (6 marks)b) Profit and Loss Account (8 marks)c) Balance Sheet (6 marks)*END*CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 8

The trial balance extracted from the books ofTim on 31/12/2020 is as follows.Dr. Cr.Kshs. Kshs.Capital 217,500Land and building 150,000Equipment at cost 37,500Depreciation provision for equipment 15,000Fitting at cost 37,500Depreciation provision fittings 17,250Stock 21,375Salaries and wages 57,750Purchases 225,000Administrative expenses 30,000Cash in bank 37,500Cash at hand 7,500Debtors 37,500Creditors 21,375CUEA/ACAD/EXAMINATIONS/DIRECTORATE OF EXAMINATIONS & TIMETABLING Page 3ISO 9001:2015 Certified by the Kenya Bureau of Standards.Sales 375,000Carriage out ward 1,500Carriage inward 750Return inward 1,125Return out ward 1,400Discount allowed 2,250Discount received 1,225Bad debts written 1,500Total 648,750 848,750Additional informationi) Closing stock was valued at kshs30,000ii) Wages paid in advance shs2000iii) Administrative expenses outstanding shs 1500iv) Depreciation to be charged 10% on cost of equipment and 5% on cost of fittings.v) 5% provision for doubtful debts .Required;i) Trading profit and loss account for the period ending 31/12/20 (13 Marks)ii) Balance sheet as at 31/12/20

A trial balance is prepared to facilitate the of the statements and to ensure the arithmetic in recording.

Question 5 The unadjusted trial balance of Southern Cross Private Limited as at 30 June 20X3 is as follows: Southern Cross Private Limited Trial balance as at 30 June 20X3 $ $ 250,000 ordinary shares 400,000 100,000 non-redeemable preference shares 120,000 Accounts payable 158,000 Accounts receivable 900,000 Accumulated depreciation: furniture & fittings 230,000 Accumulated depreciation: office building 40,000 Allowance for impairment of accounts receivable 103,000 Bank loan (due 31 December 20X3) 75,000 Cash at bank 63,000 Cost of goods sold 1,550,000 Director's remuneration 25,000 Freehold land, at valuation 380,000 Furniture & fittings, at cost 580,000 General & administrative expenses 368,000 Interest expense 8,590 Interim dividend 35,000 Inventories 117,000 Office building, at cost 1,160,000 Other payables & accruals 1,000 Tax payable 620 Retained profits as at 1 July 20X2 661,690 Sales revenue 4,000,280 Selling expenses 603,000 Total 5,789,590 5,789,590 Additional information: (i) The non-redeemable preference shares issued are entitled to annual dividends of $0.30 per share. (ii) Interim dividends of $0.10 per share were paid to the non-redeemable preference and ordinary shareholders on 31 December 20X2. (iii) On 1 December 20X2, the company issued 5% bond with face value of $250,000, maturing in 5 years’ time. Interest is payable on 1 December every year. The issue of bond and the accrual of interest have not been recorded by the company. (iv) On 1 June 20X3, Southern made a ‘3-for-5’ bonus share issue, with each share valued at $0.80. The issue of bonus shares has not been recorded in the books. The directors have also decided that these new shares issued will not be entitled to any dividends for the financial year ended 30 June 20X3. (v) On 15 June 20X3, 10 office chairs (cost: $8,500; accumulated depreciation: $6,780) were disposed off at a loss of $1,220. This transaction has not been recorded in the books. (vi) Tax liability for the current financial year was estimated to be $148,000. The tax liability for the year ended 30 June 20X2 was also confirmed and fully settled with IRAS. Any over or under-provision of income tax should be adjusted in the current financial year. The accounting entries for the adjustment and current year tax have not been made. (vii) The directors proposed final dividends of $0.15 per ordinary share and outstanding stipulated dividend for non-redeemable preference for the financial year ended 30 June 20X3. This transaction was not recorded in the books. Required: (a) Prepare the necessary journal entries for the above transactions. Narrations are not required. (b) Prepare the following financial statements for the financial year ended 30 June

a) The following summarized trial balance appeared in the books of MakossaEnterprises.Purchases and SalesDR _120,000CR200,000Debtors and creditors 80,000 50,000Cash 40,000Other assets and other Liabilities 240,000 200,000Suspense Account 30,000Total 480,000 480,000Subsequent investigations revealed the following errors:i) A sales invoice of Sh.20,000 had not been recognized in the books of accountsii) A cash receipt from a debtor of Sh.15,000 had not been adjusted in the debtors accountiii) A cash payment to a creditor of Sh.9,500 had been debited to the creditor’s account asSh.4,900iv) A purchase of a computer of Sh.50,000 for use in office work had been debited tothe purchases accountP.O. Box 90830100 Eldoret – KenyaTelephone: 0728458276Fax: 254-20-891084Email:[email protected]/ACD/EXM/SEPT - DEC 2022/GABA/BCOM Page 2ISO 9001:2015 Certified by the Kenya Bureau of Standards.v) The accountant had failed to bring forward a balance of Sh.19,600 in the wagespayable account in the post-closing trial balance of the previous financial yearRequired:i) Journal entries to correct the identified accounting errors (5 Marks)ii) The suspense account (5 Marks)iii) The corrected trial balance