UNIT CODE: DAF 1102 UNIT TITLE: FUNDAMENTALS OF ACCOUNTING I

1. Draw up for Lodwar Kawn Lassi financial position statement as 31st April 2012 as
from the following information:
Shs.
T. creditors 15,000
Furniture and equipment 10,000
Business premises 45,000
Stock of goods 12,000
Trade debtors 11,000
Cash at bank 1,000
Loan from Kisima ltd 20,000
Required: Establish capital figure (3 Marks)
c) explain errors not disclosed by a trial balance (2 Marks)
d) State any four causes of depreciation (3 Marks)
e) What is a control account and what are the advantages of a control account?
(2 Marks)
2. The following information was obtained from books of June a sole trader as at 30th
June 2012.
Shs.

Credit sales 40,000

Credit purchases 30,000
Discount received 2,000
Discount allowed 1,000
Bad debts 500
Bills payable 7,500
Bills receivable 1,500
Sales returns 1,000
Purchase returns 1,000
Cash received from debtors 15,000
Cash paid to creditors 10,000
Dishonored cheques debtors 2,500
Charges on overdue accounts on debtors 500
Required:
a) Sales ledger control accounts
b) Purchase ledger control accounts (10 Marks)
c) Compare and contrast IAS and KAS (10 Marks)