tag:blogger.com,1999:blog-49859359203461324532023-11-15T09:42:26.695-08:00iPAWNkeAn Affordable Trusted and Friendly Online Pawn Shop in Kenyamwangihttp://www.blogger.com/profile/05638257428569882910noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4985935920346132453.post-7187059975369879482011-05-09T22:30:00.000-07:002011-05-09T22:30:06.770-07:00<div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt;">The trial balance of Zach Ltd. as at 3I December 2009 was as follows:<o:p></o:p></span></div><div class="MsoNormal" style="margin-left: .15in;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 17.4pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Sh.<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Sh.<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Share capital (10,000 Sh.20 Ordinary shares)<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">200,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Purchases and Sales<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">1,220,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">2,000,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Debtors and Creditors<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">400,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">140,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Profit and loss 1 January 2009<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">380,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Sales returns<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">40,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 6;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Buildings at cost<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">800,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 7;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Plant at cost<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">1,000,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 8;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Provision for depreciation:<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 9;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Plant<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">400,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 10;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Buildings<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">40,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 11;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Purchases returns<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">80,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 12;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Selling expenses<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">140,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 13;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Bank<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">160,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 14;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">10% Debentures<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">600,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 15;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Stock 1 January 2009<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">300,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 16;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Provision for bad debts<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">20,000<o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 17;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Operating expenses<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">180,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 18;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Administrative expenses<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">140,000<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 19;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Suspense account<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">_______<o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><u><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">200,000<o:p></o:p></span></u></div></td> </tr>
<tr style="mso-yfti-irow: 20; mso-yfti-lastrow: yes;"> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 3.25in;" valign="top" width="312"> <div class="MsoNormal"><br />
</div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 66.0pt;" valign="top" width="88"> <div align="right" class="MsoNormal" style="text-align: right;"><u style="text-underline: double;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">4,220,000<o:p></o:p></span></u></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 1.0in;" valign="top" width="96"> <div align="right" class="MsoNormal" style="text-align: right;"><u style="text-underline: double;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">4,220,000<o:p></o:p></span></u></div></td> </tr>
</tbody></table><div class="MsoNormal" style="margin-left: .15in;"><br />
</div><div class="MsoNormal" style="margin-top: .15in; tab-stops: 226.6pt 298.35pt 340.1pt; text-align: justify;"><b><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .15pt;">Additional information:<o:p></o:p></span></b></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt;">Stock at 31 December 2009 was Sh.360,000.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 17.4pt; margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Sales returns of Sh.20,000 have been entered in the sales day book as if they were sales. When this error was </span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .35pt;">discovered, the debtors account had been corrected but the sales figure was not rectified.</span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;"><o:p></o:p></span></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .35pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .35pt;">5000 new shares were issued during the year at Sh.32. The proceeds have been credited to the suspense account.<o:p></o:p></span></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="letter-spacing: .2pt;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]-->A fully depreciated plant which cost Sh.200,000 was sold during the year. No other entries except bank have <span style="letter-spacing: .2pt;">been made. The remaining balance on the suspense account after (2 and 3) above represents the sale proceeds. <o:p></o:p></span></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .15pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="letter-spacing: .1pt;">A debtor of Sh.20,000 has been declared bankrupt. A general provision is required at 5% of debtors.</span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .15pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: .15in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .25in left 45.0pt; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt; line-height: 150%; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt; line-height: 150%;">Rates of Sh.30,000 paid in December covering half year to 31 March 2000 have not been entered in the books. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: .15in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .25in left 45.0pt; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .05pt; line-height: 150%; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">7.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .05pt; line-height: 150%;">Debenture interest has not been paid.<o:p></o:p></span></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">8.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt;">Depreciation on plant is at 10% on cost and buildings at 2% on cost.<o:p></o:p></span></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">9.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt;">The directors propose to pay a dividend of Sh.2 per share and transfer Sh.20,000 to the general reserve.<o:p></o:p></span></div><div class="Style1" style="margin-left: .25in; mso-list: l0 level1 lfo1; tab-stops: list .25in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .3pt; mso-bidi-font-family: Garamond; mso-fareast-font-family: Garamond;"><span style="mso-list: Ignore;">10.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .3pt;">Corporation tax at a rate of 32'/</span><sub><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">2</span></sub><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .3pt;">% on profits is estimated to be Sh.90,000.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 17.4pt; margin-left: .15in;"><b><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Required:<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 17.4pt; margin-left: .15in; tab-stops: 45.0pt 4.0in 6.0in 459.0pt; text-align: justify;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">(a)</span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt;">Suspense account for the year ended 3I December 2009 </span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .05pt;"><span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;"> </span>(3 marks) <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 17.4pt; margin-left: .15in; tab-stops: 45.0pt; text-align: justify;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .2pt;">(b)</span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">Trading,profit and loss ccount for the year ended 31December 2009.<span style="mso-tab-count: 2;"> </span> (10 marks) <o:p></o:p></span></div><div class="MsoNormal" style="text-indent: .15in;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">(c) </span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .25pt;">Balance sheet as at 3 1 December 2009.<span style="mso-tab-count: 3;"> </span><span style="mso-tab-count: 2;"> </span><span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Garamond","serif"; font-size: 11.0pt; letter-spacing: .1pt;">(7 marks)</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Garamond","serif"; font-size: 11.0pt;"><span style="mso-tab-count: 4;"> </span><span style="mso-tab-count: 2;"> </span><span style="mso-tab-count: 3;"> </span>(Total: 20marks)<o:p></o:p></span></b></div><div class="Style1"><br />
</div>mwangihttp://www.blogger.com/profile/05638257428569882910noreply@blogger.com0