BBM 100 PRINCIPLES OF ACCOUNTING – Click to view

 

MAASAI MARA UNIVERSITY

REGULAR UNIVERSITY EXAMINATIONS
2014/2015 ACADEMIC YEAR
FIRST YEAR FIRST SEMESTER

 

SCHOOL OF BUSINESS AND ECONOMICS
BACHELOR OF ARTS ECONOMICS
(SCHOOL BASED)

COURSE CODE: BBM 100
COURSE TITLE: PRINCIPLES OF ACCOUNTING
DATE: 28TH AUGUST 2015 TIME: 2.00pm – 4.00pm
INSTRUCTIONS TO CANDIDATES
Answer question ONE and any other THREE questions

This paper consists of 2 printed pages. Please turn over.
QUESTION ONE. (25 MARKS)
(a) Discuss the nature of accounting. (5 marks)
(b) Explain the various types of accounting errors. (5 marks)
(c) Discuss the imprest system of petty cash. (5 marks).
(d) From the following information provides prepare the trading, profit and loss account for the year ended 30 September 2002, and a

balance sheet as at that date. (15 marks).

QUESTION TWO. (15 MARKS).
(a) Using a sample illustration of a balance sheet explain in detail the various classifications and assets. (10 marks).
(b) Discuss the concept of double entry in accounting. (5 marks)

QUESTION THREE. (15 MARKS)
(a) Discuss the accounting principles in detail. (10 marks)
(b) Explain the significance of provisions and reserves in accounting.
(5 marks).

QUESTION FOUR. (15 MARKS).
(a) Discuss the users of the accounting information in detail. (10 marks)
(b) What are journal entries? Explain. (5 marks).

QUESTION FIVE.(15 MARKS).
(a) Amalo enterprises had the following assets and liabilities as on 30th November 2014.
Creditors shs 39,500; Equipment shs 115,000; Motor vehicle shs 62,900; Stock shs 61,500; Debtors shs 57,700;Cash at bank shs72,800 and Cash in hand shs400.

During the first week of December 2002, Amalo:

a. Bought extra equipment on credit for shs 13,800.
b. Bought extra stock by chequeshs 5,700.
c. Paid creditors by chequeshs 7,900.
d. Received from debtor’s shs 8,400 by cheque and shs 600 by cash.
e. Put in an extra shs 2,500 cash as capital.

You are to
(i) Compute the balance on the capital account as on 30th November 2014
(ii) Draw up a balance sheet as on 7 December 2002 after the above transactions have been completed.

(b) Discuss the significance of a bank reconciliation statement.
(5 marks)

 

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