THE KENYA NATIONAL EXAMINATIONS COUNCIL
BUSINESS EDUCATION SINGLE AND GROUP CERTIFICATE EXAMIN ATIONS
DIPLOMA IN SALES AND MARKETING
FINANCIAL ASPECTS OF MARKETING
Explain each of the following accounting concepts:
(i) money measurement,
(ii) prudence,
fiii) dual aspect,
(iv) business entity (8 marks)
Mento Limited has three production departments, X, Y and Z The following are the estimated overheads for the year 2016
The following transactions look place during the month of May 2017 2017 Month
May I Purchased equipment worth Ksh. 22,000 by cheque,
2 Bought goods for Ksh. 310JOOO form Ali chi credit.
3 Sold goods for Ksh. 76.500 in cash.
4 Paid rent of Ksh. 363)00 by cheque.
8 The proprietor took Ksh, 10,000 cash for personal use.
10 Betty settled her account in full by cheque.
15 Sold goods for Ksh, 142,000 to Dana as credit.
20 The proprietor brought in a table valued at Ksh. 6.000 to used in the business.
31 Paid wages amounting to Ksh. 18,000 in cash.
From the mfonnabon above, prepare ledger accounts. (12 marks)
Tekat Limited manufactures a single product. The following is the standard variable cost per unit of the product.
Jiman Manufacturers make a single product. The variable cost per unit is Ksh. 40. The selling price per unit is Ksh. 70, The annual fixed costs are Ksh, i .200,000. The current production is 50,000 units.
Determine the:
breakeven point in units;
break even point in shillings;
prnfiL at current production level,
margin of safety in units;
margin of safely in shillings. |10 marks)
Explain four advantages of retained earnings as a source of finance Io a business, (8 marks)
Moran Trager intends to start business on I January 2017 with cash of Ksh. 350,000. The proprietor has made the following estimates:
