UNIVERSITY EXAMINATIONS: 2019/2020
EXAMINATION FOR THE BACHELOR OF SCIENCE DEGREES IN
INFORMATION TECHNOLOGY/ APPLIED COMPUTING
BIT 1309/ BAC 2206/ BISF 2206: FINANCIAL MANAGEMENT FOR IT
FULLTIME/ PART TIME/ DISTANCE LEARNING
ORDINARY EXAMINATIONS
DATE: MAY, 2020 TIME: 6 HOURS
INSTRUCTIONS: Answer ALL Questions
SECTION B: (20 MARKS)
QUESTION ONE
The following balances were extracted from the books of Nurse, a sole trader, as at 31st
Additional information:
689,800 689,800
i) Stock at 31st March, 2019 was valued at sh. 48,000
ii) At 31st March, 2019 prepaid insurance amounted to sh. 4, 200
iii) Rent accrued was sh. 8,000
iv) Depreciation on machinery is provided at 20% per annum on cost.
Required:
i) Income statement for the year ended 31st March, 2019. (12 Mark)
ii) Statement of financialposition as at at 31st March, 2019. (8 Marks)
SECTION C: (20 MARKS)
QUESTION ONE
Prepare a three column cash book of XYX ltd from the details below.
July 2019
July 1 Balance brough forward: cash shs. 6,200: Bank shs. 71,420
July 2 The following paid their account by cheque, in each case deducting 5 per cent cash
discount: Slick shs.2,600; Fish shs 3,200; Old shs. 4,200
July 4 paid rent by cheque shs. 4,300
July 6 Black lent us shs.50,000 paying by cheque.
July 8 paid the following accounts by cheque in each case deducting a 5 per cent cash
discount: White shs.7,200;Green shs 9,600; Flip 16,000
July 10 paid motor expenses in cash shs. 810
July 12 Jpie pays his account of 900, by cheque shs.880, deducting shs20 cash discount.
July 15 paid wages in cash shs. 5,800
July 18 the following paid their accounts by cheque in each case deducting 5 per cent cash
discount; Pony shs.5,400, Line shs.7,000; owen shs. 5,200
July 21 cash withdrawn from the bank shs. 4,000 for business use
July 24 cash drawings shs. 2,000
July 29 bought fixtures paying by cheque shs. 7,200
July 31 received commission by cheque shs. 1,200
