Unit: Public Finance and Taxation
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Login to Access| Sh. | |
| Sales at standard rate | 9,810,816 |
| Purchases at standard rate | 6,521,984 |
| Exports to Zambia | 400,000 |
| Exempt sales | 250,000 |
| Stationery | 23,200 |
| Audit fees | 174,000 |
| Catering expenses | 69,600 |
| October 1: | Purchased raw materials from Dubai for Sh.2,981,200 inclusive of import duty at the rate of 25% and VAT at the rate of 16%. The raw materials were transported to business for further processing. The processed goods were later sold on 8 October 2024 at Sh.4,785,000 inclusive of VAT. |
| October 3: | Purchased goods from suppliers for Sh.3,840,000 net of VAT out of which 20% were from unregistered suppliers. |
| October 8: | Paid for audit and accounting services amounting to Sh.290,000. |
| October 12: | Sold goods to a client in Rwanda for Sh.720,000. |
| October 15: | Sold goods on credit to Mamba Traders based in Mombasa for Sh.835,200. Mamba Traders paid Sh.320,000 during the month and the balance to be paid in the following two months. |
| October 20: | Delight Ltd. issued credit notes to the client in Rwanda for defective goods worth Sh.60,000. |
| October..24: | Purchased computers for resale at a hire purchase price of Sh.420,000 exclusive of VAT. Hire purchase interest was Sh.92,000. |
| October 25: | The Directors of the company took goods worth Sh.160,000 from business for their personal use and donated goods worth Sh.240,000 to Neemah Children’s Home. It is the policy of the company not to charge VAT on drawings and donations. |
| October 26: | A customer who was declared bankrupt in May 2024 paid the debt of goods amounting to Sh.100,000 he owed Delight Ltd. Delight Ltd. had claimed a bad debt relief in respect of the debt. |
| October 29: | Purchased goods for cash amounting to Sh.1,240,000. October 30: Paid for the following expenses: |
| October..29: | Sh. | |
| 30,000 | |
| 48,000 | |
| 30,000 |
| Sh. | |
| May 4: Purchases of goods (local) | 4,640,000 |
| May 6: Purchase of a computer | 162,400 |
| May 8: Return outwards | 139,200 |
| May 10: Legal fees | 62,640 |
| May 12: Imports Cost, Insurance and Freight (CIF) | 300,000 |
| May 14: Advance salaries and wages | 580,000 |
| May 16: Sales (local) | 5,916,000 |
| May 18: Export sales | 600,000 |
| May 20: Exempt sales | 1,840,000 |
| May 24: Printing and stationery | 27,840 |
| May 28: Electricity | 53,940 |
| Sh. | |
| Sales at standard rate | 6,199,997 |
| Exports to Egypt | 800,000 |
| Purchases at standard rate | 4,000,000 |
| Purchase of oil and fuel for delivery van | 360,500 |
| Repairs of office furniture | 64,000 |
| Audit fees | 160,000 |
| Salaries and wages | 1,480,000 |
| Purchase of stationery | 68,000 |
| Electricity bills for the month (not paid) | 56,400 |
| Legal fees | 48,600 |
| Purchases from traders not registered for VAT | 580,000 |
| Zero rated sales | 400,000 |
| October 2: | Tax consultancy work for Betterlife Ltd. at a fee amounting to Sh.840,000 exclusive of VAT. |
| October 4: | Audit for Rwandacell, a company based in Rwanda at a fee amounting to Sh.920,000 exclusive of VAT. |
| October 10: | Consultancy services for Whitestar Ltd. She billed the company Sh.348,000 inclusive of VAT. |
| October 15: | The firm was contracted by Zedcom Ltd. to undertake review of its internal control system at a fee of Sh.603,200 inclusive of VAT. |
| October 17: | Conducted an audit for Whitestar Ltd. for the year ended 31 December 2022. The fee charged was Sh.487,200 inclusive of VAT. |
| October 18: | Stima Ltd. contracted the firm to conduct a survey on power consumption at a fee of Sh.2,400,000 exclusive of VAT. |
| October 19: | The firm audited accounts of Glory Ministries, a church where Cheptoo serves as a volunteer auditor. She estimated that the fees would have been Sh.720,000 excluding VAT. |
| October 21: | Billed Whitestar Ltd. Sh.136,880 inclusive of VAT for debt collection services. |
| October 22: | The firm undertook a financial consultancy services for Speed Netcom S.A, a company based in South Africa. The fee charged was Sh.640,000 exclusive of VAT. |
| October 24: | Conducted an audit for Walkah Ltd. at a fee of Sh.232,000 inclusive of VAT. |
| October 26: | Provided accountancy services to Compassionate Children Home on volunteer basis. She estimated the value of the services was Sh.139,200 inclusive of VAT. |
| October.31:. | She paid the following expenses which were inclusive of VAT where applicable: |
| October.31:. | Sh. | |
| Electricity | 25,520 | |
| Water bills from county water and sewerage company | 5,400 | |
| Garbage collection | 35,960 | |
| Rent for the office | 127,600 | |
| Stationery | 26,680 | |
| Computer repairs | 30,160 | |
| Telephone bills | 19,720 |
| Sh. | ||
| December 4: | Purchases | 725,000 |
| December 8: | Return outwards | 58,000 |
| December 12: | Catering expenses | 87,000 |
| December 15: | Repairs of delivery van | 29,000 |
| December 18: | Audit fees | 26,100 |
| December 20: | Cost insurance and freight (CIF) imports | 125,000 |
| December 22: | Sales (local) | 1,131,000 |
| December 24: | Sales (export) | 250,000 |
| December 27: | Exempt sales | 350,000 |
| December 28: | Photocopying | 11,600 |
| December 30: | Telephone bill | 23,200 |
| January 2: | Sold goods on credit to Kikoi Traders for Sh.800,000. |
| January 3: | Purchased goods on cash basis from Riverroad Traders for Sh.196,000. |
| January 5: | Purchased electronic tax register for Sh.150,000 and paid by cheque. |
| January 7: | Kikoi Traders returned goods valued at Sh.60,000 and received a credit note. |
| January 9: | Sold goods to JB Ltd., a company based in Uganda for Sh.300,000. |
| January 12: | Paid electricity bills amounting to Sh.16,000. |
| January 14: | Received a debit note of Sh.48,000 from Riverroad Traders. |
| January 18: | Purchased office stationery for Sh.36,000 |
| January 20: | Supplied goods to Ministry of Trade valued at Sh.1,600,000. |
| January 21: | Imported goods from Dubai for Sh.800,000 exclusive of import duty at the rate of 25% and value added tax at the rate of 16%. |
| January 24: | Purchased fuel for business vehicles for Sh.150,000. |
| January 28: | Paid Sh.68,000 for catering services. |
| January 29: | Paid Sh.45,000 for audit services |
| Income: | Sh. |
| Sales to unregistered customers | 2,337,480 |
| Sales to registered customers | 5,939,483 |
| 8,276,963 | |
| Expenditure: | |
| Purchases from VAT registered suppliers | 3,617,924 |
| Purchases from VAT unregistered suppliers | 1,780,020 |
| Depreciation | 240,600 |
| Electricity | 204,450 |
| Printing and stationery | 66,700 |
| Motor vehicle parking charges | 42,050 |
| Water bill | 23,200 |
| Legal fees | 133,400 |
| Motor vehicle fuel | 167,400 |
| Repair and maintenance | 105,850 |
| Computer software | 49,532 |
| Salary and wages | 960,000 |
| Sh. | |
| Export sales | 375,000 |
| Imported goods for resale (dutible value) | 2,250,000 |
| Telephone expenses | 180,000 |
| Audit fees | 450,000 |
| Exempt sales | 1,460,000 |
| Purchase at zero rate | 600,000 |
| Purchase at standard rates | 3,700,000 |
| Sales at standard rate | 8,750,000 |
| Sh. | ||
| 1 | Sales to the local market | 3,400,000 |
| Sales to foreign market | 5,000,000 | |
| Exempt sales | 2,350,000 | |
| 2 | Purchases and expenses incurred during the month were as follows: | Sh. |
| Cash purchases | 1,300,000 | |
| Credit purchases | 2,250,000 | |
| Salaries and wages | 1,800,000 | |
| Legal services | 650,000 | |
| Stationery | 720,000 | |
| Warehouse rent | 400,000 | |
| Security services | 680,000 | |
| Purchase of computers | 120,000 | |
| 3 | The above transactions are stated exclusive of VAT at the rate of 16%. |
| 2 August: | Purchased 16 digital television sets from Dubai Ltd. for Sh.58,000 each. |
| 2 August: | Sold 4 video cameras to the Ministry of Tourism for Sh.72,500 each. |
| 4 August: | Paid audit fees to Hekima and Associates CPA of Sh.34,800. |
| 5 August: | Sold 8 digital television sets to Mambo Restaurant in Uganda for Sh.130,500 each. |
| 9 August: | Purchased 10 slide projectors for Sh.104,400 each from Infor Tech Limited. |
| 10 August: | Purchased office stationery for Sh. 17,400 and paid by cheque. |
| 12 August: | Sold 4 flashbulbs that had cost Sh.420,000 for Sh.116,000 each. |
| 16 August: | Mambo Restaurant returned 2 television sets and was issued with a debit note of the equivalent amount. |
| 19 August: | Paid electricity bills amounting to Sh.40.600. |
| 21 August: | Sold 8 television sets to local customers for Sh. 104,400 each. |
| 24 August: | Sold slide projectors for Sh.232,000 to Umoja Communications Ltd. |
| 27 August: | Paid Sh.58,000 for repairing the director's motor vehicle. |
| 28 August: | Purchased electronic appliances from local suppliers for Sh.1,160,000. |
| 30 August: | Paid water bills of Sh.21,600 in cash for water supplied by the county water services board during the month. |
| Revenues: | Sh. | Sh. |
| Revenue from VAT registered customers. | 1,790,750 | |
| Revenue from consultancy services in Rwanda | 2,686,125 | |
| Revenue from Ministry of Lands contract | 1,486,250 | |
| Revenue from customers not registered for VAT | 2,586,800 | |
| 8,549,925 | ||
| Expenditure: | ||
| Legal services | 435,000 | |
| Salaries and wages | 1,740,000 | |
| Medical services | 556,800 | |
| Motor vehicle fuel | 125,280 | |
| Purchase of design materials | 870,000 | |
| Motor vehicle insurance | 69,600 | |
| Stationery | 29,000 | |
| Audit fees | 501,120 | |
| Office rent | 228,375 | |
| Advertising | 194,300 | (4,749,475) |
| 3,800,450 |
| Sh. | |
| Sales at standard rate | 1,480,000 |
| Exports to a foreign country | 364,000 |
| Audit fees | 78,300 |
| Electricity bills | 36,400 |
| Imported raw materials | 320,000 |
| Purchases at standard rate | 624,500 |
| Exempt supplies | 700,000 |
| Catering services | 94.000 |
| Entertainment services | 120,000 |
| Telephone bills | 28,000 |
| Car parking services | 50,000 |
| Bottled drinking water for staff | 64,000 |
| Zero rated supplies (exports) | 240,000 |
| Repairs of motor vehicles | 76,200 |
| Sh. | |
| Local supplies | 7,586,400 |
| Relief supplies | 1,740,000 |
| Exports | 4,408,000 |
| Computers purchased | 580,000 |
| Electricity (factory) | 278,400 |
| Office internet (fibre) | 14,500 |
| Office rent | 250,560 |
| Raw materials (imported) | 6,960,000 |
| Hotel bills for the finance manager | 139,200 |
| Purchases from VAT registered traders | 1,113,600 |
| Purchases from VAT unregistered persons | 290,000 |
| Telephone bills | 17,400 |
| Sales Day Book |
| Date | Details | Folio | Amount (Sh.) |
| December 4 | Mwangaza Ltd. | 1002 | 650,000 |
| 7 | J. Kamau | 1003 | 520,000 |
| 14 | Hazina Enterprises (export) | 1004 | 350,000 |
| 20 | Ministry of Sports | 1005 | 170,000 |
| Total | 1,690,000 |
| Purchases Day Book |
| Date | Details | Folio | Amount (Sh.) |
| December 1 | Jawabu Enterprise | 2004 | 300,000 |
| 6 | Sonytec Ltd. (imports) | 2006 | 420,000 |
| 12 | N. Kaluma | 2007 | 200,000 |
| 27 | B. Salama | 2008 | 180,000 |
| Total | 1,100,000 |
| Dr | Cr | ||||||
| Date | Details | Cash | Bank | Date | Details | Cash | Bank |
| December | Sh. | Sh. | December | Sh. | Sh. | ||
| 5 | Sales | 960,000 | 450,000 | 2 | Salaries and wages | 1,800,000 | |
| 15 | Receipt from debtors | 800,000 | 4,200,000 | 4 | Catering expenses | 120,000 | |
| 5 | Purchases | 580,000 | 640,000 | ||||
| 7 | Furniture | 160,000 | |||||
| 9 | Electricity | 32,000 | |||||
| 14 | Photocopying | 24,000 | |||||
| 22 | Refund to customers | 176,000 | |||||
| 30 | Balance c/d | 1,004,000 | 1,874,000 | ||||
| 1,760,000 | 4,650,000 | 1,760,000 | 4,650,000 | ||||
| 1 | J. Kamauwas declared bankrupt on 18 December 2018 after having paid Sh.400,000 for the goods purchased on 7 December 2018. |
| 2 | Ten per cent of the purchase from Jawabu Enterprises were returned by the company due to poor quality. |
| 3 | Credit notes amounting to Sh.280,000 were issued to customers during the month. |
| 4 | Refund to the customers in the cashbook relates to the excess amounts paid on cash sales. |
| 5 | A purchase invoice of Sh.220,000 from Dubai Traders was omitted from the purchases daybook. |
| 6 | All the above transactions are exclusive of VAT at the standard rate of 16% |
| Sh. | |
| Purchases at standard rate | 487,200 |
| Audit fees | 41,760 |
| Exports to Malawi | 400,000 |
| Sales at standard rate | 1,136,800 |
| Purchases of printing materials | 29,000 |
| Fuel for delivery van | 78,880 |
| Exempt supplies | 280,000 |
| Catering for firm employees | 81,200 |
| Entertainment expenses | 24,360 |
| Telephone expenses | 58,000 |
| Payment of water bill | 21,000 |
| March 10: | Opening stock 9,200 units valued at Sh.85 per unit. |
| March 5: | Imported 10,000 units at Sh.80 per unit being cost, insurance and freight (CIF). |
| March 8: | Purchased 5,000 units from the local market at Sh.60 per unit. |
| March 9: | Sold 6,000 units at Sh.90 per unit. |
| March 12: | Purchased office furniture for Sh.40,000 for use in the business. |
| March 15: | Paid Sh.10,000 for photocopy and printing of office documents. |
| March 16: | Purchased oil filters and lubricants for use in the factory for Sh.75,000. |
| March 16: | Paid an invoice for Sh.85,000 in respect of fuel for company vehicles, the fuel had been used in February 2018 |
| March 18: | Supplied 30,000 units to a department in the National Treasury at a price of Sh.85 per unit. |
| March 20: | Sold 2,500 units at Sh.90 per unit to a company in Uganda. |
| March 23: | Purchased on credit 2,500 units locally at Sh.80 per unit before deducting a cash discount of 5%. |
| March 27: | The directors' appropriated goods valued at Sh.320,000 which were not paid for. |
| March 28: | Paid electricity expense of Sh.15,000 and telephone expense of Sh.6,000. |
| 1 | Sales during the month: |
| Sh. Standard rate 1,900,000 Zero rated 418,000 Exempt. 342,000 | |
| 2 | Customers for the sales at standard rate are offered a 15% discount if they settle within the same month. From past experience, 40% of the customers take advantage ofthe discount facility. |
| 3 | Purchases of goods constituted Sh.1,200,000 made at the standard rate and Sh.500,000 exempt. All the purchases are made in cash. |
| 4 | The exempt sales were all from the batch of exempt purchases with some remaining in inventory at the end of the month. |
| 5 | During the month, she paid rent for the business premises for the month of October and the remaining portion of the year. The landlord charges Sh.80,000 per month. |
| 6 | The business accountant wrote off debts amounting to Sh.280,000 as irrecoverable and made an allowance for specific irrecoverable debts of Sh.11,600 as the portion for that month. |
| 7 | During the month, a supplier from whom the business had made purchases of goods worth Sh.292,000 and a a customer to whom goods were sold at standard rate in July 2017 and still owed Sh.325,000 were declared bankrupt. |
| 8 | A pick-up vehicle was acquired at a cost of Sh.870,000 (inclusive of VAT) for business purposes. |
| 9 | At the end of every month, Mwanahawa prepays the electricity for the following month using prepaid meter tokens. This is done by establishing her standard usage for the following month. During the month, she paid Sh.42,500 whereas in the previous month she had paid Sh.38,500. |
| 10 | Other expenses paid during the month of October 2017 were as follows: |
| Sh. | ||
| Telephone | 13,200 | |
| Audit fee (Tax invoice including VAT) | 111,070 | |
| Stationery | 36,000 |
| 11 | Mwanahawa made donations to registered charities consisting of Sh.100,000 in cash and Sh.280,000 in ferm of goods. |
| 12 | Closing inventory for the month was valued at Sh.340.000. |
| Cash purchases | Sh. | ||
| 1 May 2017 | Furniture | 174,000 | |
| 5 May 2017 | Goods for sale | 232,000 | |
| 10 May 2017 | Stationery | 58,000 | |
| Purchase invoice transactions | Sh. | Payment date | |
| 10 May 2017 | Inventory for sale | 626,400 | 10 June 2017 |
| 14 May 2017 | Audit services | 145,000 | 30 May 2017 |
| 16 May 2017 | Inventory for sale | 696,000 | 14 July 2017 |
| 20 May 2017 | Generator fuel | 104,400 | 25 June 2017 |
Cash sales Credit sales | Sh. 348,000 1,102,000 |
| Sh. | ||
| Consultancy fee: | Local clients | 1,587,500 |
| Clients in the Democratic Republic of Congo | 389.375 | |
| Sale of goods: | Exports | 400,000 |
| Local market | 3,200,000 | |
| E-mail and webhosting expenses | 92,000 | |
| Legal fees incurred | 608,000 | |
| Import of goods for resale (cost, insurance and freight) | 450,000 | |
| Consultancy fee: Client with goods on transit | 500,000 | |
| Photocopying costs | 90,000 | |
| Audit fee paid | 260,000 | |
| Purchases: | Zero rated | 250,000 |
| Standard rate | 1,900,000 | |
| Sales (Exempt) | 620,000 | |
| 1 | He sells goods on both cash and credit terms. The credit terms are 30 to 60 days, 61 to 90 days and 91 to 120 days. Any debt beyond 120 days is written off as bad. |
| 2 | His sales during the month of May 2016 were as follows: |
| Sh. | |||
| Cash sales | 900,000 | ||
| Credit sales: | 30-60 days | 920,000 | |
| 61-90 days | 1,840,000 | ||
| 91-120 days | 632,000 |
| 3 | Debts of the firm are collected by an agent who charges Sh.160,000 per month. For debts aged over 120 days, Mark hires a lawyer to enforce collection. The legal fee for the month of May 2016 was Sh.300,000. |
| 4 | Goods worth Sh.280,000 were delivered to a customer in May 2016. The customer had paid for the goods in April 2016. |
| 5 | During the last several years, he had written off bad debts as follows: |
| Year ending 31 December: 2015 2014 2013 2012 | Sh. 316,000 245,000 198,000 232,000 |
| 6 | During the month an extension to the business premises was constructed for which the contractor charged Sh.3,000,000. |
| 7 | He made a donation to Watoto Children's Home that comprised of goods worth Sh.480,000 and Sh.100,000. |
| 8 | A bad debt written off in year 2011 of Sh.90,000 was recovered during the month of May 2016. |
| 9 | He imported a pick-up motor vehicle for use in the business during the month. The cost details of the motor vehicle were as follows: |
Purchase cost Customs duty Excise duty Logistics costs Insurance cost | Sh. 700,000 70,000 140,000 200,000 180,000 |
| |
| 10 | Purchases of goods amounted to Sh.1,500,000 during the month. |
| 11 | A customer returned goods worth Sh.68,000 and was issued with a credit note during the month. |
| 12 | A credit customer with a debt of Sh.120,000 and a cash customer for goods worth Sh.390,000 were declared bankrupt during the month. |
| 13 | A trusted customer was invoiced in May 2016 for goods worth Sh.150,000 which he would collect and pay for in June 2016. |
| 14 | He exported goods to Tanzania amounting to Sh.1,300,000. |
| 15 | He paid the following expenses during the month; Sh.260,000 to an advertising company. Sh.180,000 for telephone and Sh.74,000 for electricity. |
| 2 April | Purchased goods from Mambo Enterprises on credit worth Sh 1,800,000. |
| 2 April: | Purchased office fumiture for Sh.720,000 from Excel Furniture Mart. |
| 3 April | Sold goods worth Sh.860,000 to Ken Link Communications Lad on credin |
| 4 April: | Purchased spare parts for motor vehicles worth Sh 230,000. |
| 5 April | Returned office fumiture worth Sh. 180,000 to Excel Fumiture Mart and was issued with a debit note of the same amount |
| 6 April | Goods worth Sh 120,000 were found to be defective and Ken Link Communications Ltd., returned them |
| 9 April | Purchased goods worth Sh 2,400,000 from Japan, exclusive of import duty of 15% and VAT at the rate of 16% |
| 10 April | Sold goods for cash worth Sh. 3,200,000. |
| 12 April | Exported goods wonh Sh. 4,200,000 το Annex Enterprises Ltd., in Rwanda |
| 16 April | Paid catering expenses wonh Sh 160,000. |
| 18 April | Imported goods worth Sh. 1,600,000 from India esclusive of import duty of 25% and VAT at the rate of 16% |
| 20 April | Renovated the existing buildings at a cost of Sh. 800,000 |
| 22 April | Paid rent and tates amounting to Sh.490.000 |
| 24 April | Exported goods worth Sh. 2,400.000 to South Africa. |
| 28 April | Sold goods worth Sh 980,000 to Vista Communications Ltd. in cash |
| 29 April | Hired a taxi to tramport staff and paid Sh. 9,000 |
| 30.April: | Paid the following expenses for the month of April 2015. |
| 30.April: | Sh. | |
| Water bill | 30,000 | |
| Salaries and wages | 280,000 | |
| Telephone bill | 48,000 | |
| Electricity bill | 180,000 |
| Sh. | ||
| Purchase of pig feed | 205,000 | |
| Wages to farm labourers | 80,000 | |
| Purchase of a plastic water tank | 11,000 | |
| Salary for farm manager | 150,000 | |
| Farmhouse renovation costs | 65,000 |
| September 1: | Purchased 10 cameras for a total of Sh. 500,000. |
| September 2: | Purchased flash bulbs for a total of Sh. 200,000. |
| September 4: | Purchased slide projectors for a total of Sh. 1,000,000. |
| September 6: | Sold 5 cameras each at 35% above cost price |
| September 7: | Purchased 200 wrist watches at Sh. 1,500 |
| September 8: | Sold 2 slide projectors for a total of Sh. 500,000 |
| September 9: | Sold flash bulbs that had cost Sh. 100,000 for Sh. 150,000 |
| September 12: | Purchased 50 stop watches for a total of Sh. 50,000 |
| September 15: | Purchased 100 alarm clocks at a total cost of Sh. 80,000 |
| September 18: | Sold the remaining 5 cameras each at 25% above cost price |
| September 20: | Sold 3 slide projectors for a total of Sh. 750,000 |
| September 22: | Sold 100 wrist watches at Sh. 2,000 per watch |
| September 25: | Sold 70 alarm clocks each at 30% above cost price |
| September 27: | Sold 50 stop watches for a total of Sh. 75,000 |
| September 30: | Paid -
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