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

Question 4 The unadjusted trial balance of Go Regional Ltd. as at 31 March 20X5 is as follows: Debit $’000 Credit $’000 400,000 Ordinary shares n 5,000 Accumulated depreciation : Building n 400 Accumulated depreciation : Office equipment n 180 Building n 10,000 Cash at bank n 518 Cost of goods sold n 19,508 Bond (repayable in September 20X8) 3,600 Bond interest expenses 120 General and administrative expenses n 1,582 Office equipment, at cost n 630 Allowance for impairment of trade receivables n 63 Tax payable n 10 Sales n 23,790 Selling expenses n 758 Inventories n 5,798 Other creditors and accruals n 240 Trade payables n 3,861 Trade receivables n 4,200 Retained profits (31 March 20X4) n 4,954 42,606 42,606 Additional information: (i) The company issued 40,000 ordinary shares at an issue price of $10 each in January 20X5. This share issue has not been recorded in the company’s books. (ii) The company made a ‘1-for-4’ rights issue at a price of $14 per share on 28 February 20X5 (market price was $15.20) for additional working capital. No entry has been made in the books in respect of this issue. (iii) Bond interest rate is 5% per annum, payable annually on 1 April. (iv) On 15 March 20X5, the company carried out a share buy-back exercise and purchased 50,000 ordinary shares in the open market at the price of $12 per share. These shares are to be held as treasury shares. This transaction has not been recorded. (v) Tax liability for the current year is estimated at $400,000. The Comptroller of Income Tax confirmed that the tax liability for the year ended 31 March 20X4 has been fully settled. 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 had not been made. (vi) The directors proposed a final net dividend of $0.30 per ordinary share. No accounting entry was made as at year-end. Required: Prepare the following for Go Regional Ltd: (a) Adjusting journal entries to record the above transactions. Narrations are not required.

The following trial balance was extracted from the books of Rose Martins, a sole trader on 31 December 2005. Sh. Sh.Capital 2,880,000Freehold land and buildings at cost 1,120,000Motor vehicles at cost 1,094,000Furniture and fittings at cost 240,000Stock at 1 January 2005 960,000Purchases and sales 9,408,000 11,088,000Debtors and creditors 936,000 695,200Discounts allowed and received 195,200 119,200 Returns inwards and outwards 16,000 28,800Rent received 44,000 Loan (interest payable 5% per annum) 192,000Interest on loan 4,800Proceeds of sale of motor vehicle 150,000Provision for doubtful debts 27,200Bad debts 52,000Wages and salaries 1,127,200Drawings 256,000General expenses 138,400Bank balance 108,800Rates and insurance 48,000Provisions for depreciation: Furniture and fittings 160,000 Motor vehicle 320,000 15,704,400 15,704,400Notes:1. Stock at 31 December 2005 was valued at Sh. 1,360,000.2. Included in general expenses is a sum of Sh. 26,400 being expenses on electricity for domestic use.3. A vehicle purchased on 1 January 2003 at Sh. 450,000 was sold for Sh. 150,000. The only record of the transaction is the credit of Sh. 150,000 to the proceeds of sale of motor vehicle account.4. As at 31 December 2005, wages and salaries outstanding amounted to Sh. 66,400.5. Prepaid rates and insurance as at 31 December 2005 stood at Sh. 12,000.6. Interest paid is only a half of the amount due for the year ended 31 December 2005.7. Provision for doubtful debts is to be adjusted to 5% of the debtors.8. Depreciation is to be provided for as follows:(i) Furniture and fittings at 5% on reducing balance method(ii) Motor vehicles at 20% on straight line method.9. Rent owing from a tenant who occupies a part of the building was Sh. 40,000 on 31 December 20005.Required:a) Profit and loss account for the year ended 31 December 2005.b) Balance sheet as at 31 December 2005.

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

QUESTION TWOThe following trial balance has been extracted from the ledger of Herbert Howell, a sole trader,as at 31 May 2019, the end of his most recent financial year.Herbert HowellTrial Balance As At 31 May 2019Dr CrSh. Sh.Property at cost 90,000Equipment at cost 57,500Provision for depreciation (as at 1 June2018)Property 12,500Equipment 32,500Stock as at 1 June 2018 27,400Purchases 259,600Sales 405,000Discounts allowed 3,370Discounts received 4,420Wages and salaries 52,360Bad debts 1,720Loan interest 1,560Carriage out 5,310Other operating expenses 38,800Trade debtors 46,200Trade creditors 33,600Provision for bad debts 280Cash on hand 151Bank overdraft 14,500Drawings 28,93013% loan 12,000Capital, as at 1 June 2018 ______ 98,101612,901 612,901The following additional information as at 31 May 2019 is available:(a) Stock as at the close of business was valued at Sh.25,900.(b) Depreciation for the year ended 31 May 2019 has yet to be provided as follows:Property - 1% using the straight-line methodEquipment - 15% using the straight-line methodCUEA/ACD/EXM/SEPT - DEC 2022/GABA/BCOM Page 4ISO 9001:2015 Certified by the Kenya Bureau of Standards.(c) Wages and salaries are accrued by Sh.140.(d) Other operating expenses include certain expenses prepaid by Sh.500. Other expensesincluded under this heading are accrued by Sh.200.(e) The provision for bad debts is to be adjusted so that it is 0.5% of trade debtors as at 31 May2019.(f) Purchases include goods valued at Sh.1,040, which were withdrawn by Mr Howell for hisown personal use.Required:Prepare Mr. Howell’s trading and profit and loss account for the year ended 31 May 2019 and hisbalance sheet as at 31 May 2019.

15) The following is the trial balance of a trader as on 31st Chaitra, 2075: [4+6+5=15]Particulars Debit (Rs) Particulars Credit (Rs)Opening stock 1,40,000 Sales 3,00,000Salaries 51,000 Capital 4,00,000Drawing 50,000 12% Loan 50,000Building 2,00,000 Commission 3,000Furniture 30,000 Creditors 50,00010% Investment 50,000 Bills payable 134,000Purchases 2,50,000 Provision for bad debt 2,500Interest on loan 3,000    Wages 20,000    Insurance 5,000    Debtors 1,00,000    Cash balance 10,500    Bills receivable 30,000      9,39,500   9,39,500Additional information:a) Closing stock Rs. 1,50,000.b) Outstanding expenses: Wages Rs. 2,000, Salaries Rs. 9,000.c) Write off bad debts Rs. 10,000.d) Create provision for bad debts @ 5% on debtors.e) Insurance prepaid Rs. 2,500.f) Depreciate furniture by 10%.Required:Trading accountBalance sheetProfit and loss account