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The Accounting Process and Systems

Unit: Financial accounting

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August 2024

2 Questions
Question 3a
​​Describe TWO uses of source documents in accounting.


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Question 5b
​​Highlight FOUR reasons that may cause a cheque to be dishonoured by a bank.


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December 2023

1 Questions
Question 5a
​​Highlight SIX reasons why it is necessary to make adjustments to accounts at the end of the accounting year.


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August 2023

3 Questions
Question 2b
​ ​ ​ ​​
The following balances were extracted from the books of Juhudi Traders for the month of July 2023: 
 
Sh.“000”
Debit balances: (1 July 2023) Sales ledger 
1,428,000
                          (1 July 2023) Purchases ledger 
10,500
Credit balances: (1 July 2023) Sales ledger
40,500
                           (1 July 2023) Purchases ledger  
553,800
Discounts received 
142,500
Discounts allowed
209,700
Purchases (including cash purchases of Sh.152,000) 
1,334,000
Cash sales 
618,000
Credit sales 
2,068,200
Credit notes issued to customers  
75,000
Contra settlements 
36,900
Payments to trade payables 
1,159,200
Interest charged by trade payables on overdue accounts 
69,000
Receipts from trade receivables
1,578,000
Bad debts written off 
37,200
Customer’s dishonoured cheques 
26,100
Interest charged on customers’ overdue accounts 
96,100
Debt collection expenses charged to trade receivables 
10,800
Credit notes received from trade payables 
26,700
Balances as at 31 July 2023: 
  • Purchases ledger (Debit) 
14,400
  • Sales ledger (Credit) 
50,700 
 
Required:
(i) Sales ledger control account for the month ended 31 July 2023.

(ii) Purchases ledger control account for the month ended 31 July 2023. 


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Question 5b
​​Highlight FOUR advantages of books of prime entry.


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Question 5a
​​Explain the nature of the accounting equation.


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December 2022

2 Questions
Question 5a
​​Explain the following accounting concepts: 

 (i) Materiality concept.

(ii) Matching concept.


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Question 1a
​ ​​The following balances were extracted from the books of Jiwe Traders for the month of November 2022:

Sh. 
Debit balance (1 November 2022) 

  • Sales ledger 
5,698,000
  • Purchases ledger 
36,750
Credit balance (1 November 2022) 
  • Sales ledger
141,750
  • Purchases ledger 
2,288,300
Payment to suppliers
4,057,200
Interest charged by creditors on overdue accounts 
241,500
Receipts from credit customers 
6,223,000
Bad debts written off 
130,200
Customers dishonoured cheques 
91,350
Interest charged to customers on overdue accounts 
336,350
Debt collection expenses charged to debtors 
37,800
Credit notes received from suppliers 
93,450
Discounts received 
498,750
Discounts allowed 
733,950
Purchases (including cash purchases of Sh.532,000) 
4,669,000
Cash sales  
2,163,000
Credit sales 
7,238,700
Credit notes issued to customers 
262,500
Contra settlement 
129,150
Balances as at 30 November 2022: 
  • Purchases ledger (debit) 
50,400
  • Sales ledger (credit) 
177,450

Required: 
(i) Sales ledger control account for the month ended 30 November 2022. 

(ii) Purchases ledger control account for the month ended 30 November 2022. 


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August 2022

1 Questions
Question 5b
​​Discuss two benefits of using the double entry system of bookkeeping to an organisation.


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December 2021

2 Questions
Question 1b
​​ Explain five uses of control accounts in an organisation.


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Question 3a
Identify four books of original entry used in accounting


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May 2021

1 Questions
Question 5a
Highlight four uses of the general journal


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November 2020

1 Questions
Question 5c
Outline six challenges that might be faced by an organisation that is switching from a manual accounting system to a computerised accounting system.


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November 2019

1 Questions
Question 5a
Highlight five factors that an organisation might consider when sourcing for accounting software.


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November 2018

1 Questions
Question 5a
Outline four reasons why it is important to undertake bank reconciliation.


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May 2018

1 Questions
Question 2a
Highlight six uses of the general journal.


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November 2016

1 Questions
Question 5d
 Discuss four advantages of computerised accounting systems.


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