UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY/ DIPLOMA IN INFORMATION TECHNOLOGY
DBIT106 DIT302 FUNDAMENTALS OF ACCOUNTING/FINANCIAL
MANAGEMENT FOR IT
DATE: DECEMBER, 2016 TIME: 1 ½ HOURS
INSTRUCTIONS: Answer any THREE questions.
a) The following is a trial balance of G Still as at 31st September 2009:
a) Draw up an income statement/T,P&L Account for the year ending 30th September 2009
b) A balance sheet as at 31st September 2009 (10 Marks)
The following transactions relates to Jane a sole trader in Kiambu County:
1 Started in business with Kshs.2,500,000 in bank
“ 3 Bought machinery worth Kshs.750,000 on credit from XYZ ltd.
“ 5 Bought a motor van paying by cheque Kshs.600, 000
“ 8 Paid the amount owing to XYZ Ltd by cheque
“ 15 Purchased stock from Unga Ltd. on credit Kshs.200,000
“ 17 Sold goods on credit to Stima Club Kshs.100,000
“ 18 Returned goods to Unga Ltd worth Kshs.10,000
“ 23 Stima Club returned goods to us worth Kshs.15,000
“ 25 Paid the amount owing to Unga Ltd. by cheque
“ 30 Bought more machinery by cheque Kshs.280,000
(i) Prepare the relevant ledger accounts and balance them off (10 Marks)
(ii) Prepare a trial balance as at 31st May 2014 (10 Marks)
a) Discuss any five users of accounting information (10 Marks)
a) Complete the following gaps in the following table:
b) The following details relates to a second hand bookshop at Mariakani.
st: Balance brought forward from the previous month: cash sh 105; Bank sh2164.
nd: Cash sales sh 605.
rd: Took sh 500 from the cash till and paid it into the bank
th: J Mathews paid us sh 217 by a cheque
th: We paid for postage stamps sh 60 cash.
th: Bought office equipment by cheque sh 189.
th: We paid J.Lucas by cheque sh 50
th:We received rates refund by cheque sh 72.
11th: Withdrew sh 250 from the bank for business use.
12th: Paid wages in cash sh 239.
14th: Paid motor expenses by cheque sh 57.
16th: L Levy lent us sh 200 in cash
From the above transactions write up a two column cash book.
a) Briefly explain why the following parties may be interested in the financial statements of an
i. Employees. (4 Marks)
ii. Financial analysts. (4 Marks)
iii. The government. (4 Marks)
iv. The public. (4 Marks)
b) State any two circumstances that may hinder a firm from improving on the usefulness of its