Exercise 1
Dead End Merchants is a retail company that deals in the following commodities.
Product Cost Sale Supplier Quantity
Borzoi Vodka 300 450 Bovi Int. 100
Smirnoff Vodka 250 350 Kwal K. Ltd 200
Czars Vodka 300 500 Swiss Co. 150
KWV Vodka 150 250 Southern Traders 250
Vat 69 Whisky 450 700 Swiss Co. 100
100 Pipers Whisky 500 875 Swiss Co. 100
Banoch Brae Whisky 350 600 Alban wines 150
Myers Rum 500 999 Ramafan Distillers 140
Captain Morgan 999 1999 Bovi Int. 170
KWV Brandy 500 1000 Southern Traders 100
Chivas De race brandy 399 670 Southern Traders 220
Cognac Grape brandy 700 3570 Ramafan Distillers 500
The company has four credit buyers.
1. The Florida casino.
2. Choices Club.
3. Hardrock restaurant.
4. New Visions Nightclub.
Others buy directly in cash.
On 01/01/2004 the company received a fresh consignment of commodities from a donor company in the following specifications.
All Vodkas 400 Bottles
Whiskies 270 Bottles of each
Rum 200 Bottles
Brandies 210 Bottles
On 03/01/2004 DED sent an invoice No. 1110 to Choices for the following items.
5 KWV Vodka
2 Borzoi vodka
2 Vat 69
1 captain Morgan
05/01/2004 Invoice no 1111 to Florida for: -
6 Borzoi
4 Vat 69
3 Cognac
2 Mayers
4 KWV brandy
10 Smirnoff
07/01/2004 Invoice no 1112
To New Visions for
6 Kwv vodka
2 Captain Morgan
4 Banoch
4 Borzoi vodka
3 Vat 69
2 Cognac
15/01/2004 Invoice no 1113
To Hardrock for :-
2 cognac
4 Captain
3 banoch
3 Chivas de race
20/01/2004 receipt no 0001
Mr. kamau
2 Kwv vodka
1 100 pipers
22/01/2004 receipt no 0002
JS Shah
1 Cognac
5 Czars
3 Kwv Brandy
27/01/2003
James peters.
2 100 pipers.
4 Czars.
1 Banoch Brae.
2 Chivas de race.
27/01/2004
Choices paid for invoice No. 1110 check no 2322
Florida casino paid for inv. No. 1111 check no 0980
29/01/2004
Hardrock made half payment for inv. no 1113 check no 88754-0
30/01/2004
DED Paid Rent 12000/=
Elec. 1200/=
Water 1000/=
Wages 7000/=
Transp. 4000/=
exercise 2
Riverside Traders is a company that deals in all sorts of trade and recently they have asked you (Their Accountant) to computerize their accounting system for next year starting 1/1/97.
Balances in the books at the close of this year stand as follows.
Trial Balance as at 12/31/1996
Particulars Dr Cr
Motor vehicle 50,000
Furniture 40,000
Computers 30,000
Bank 30,000
Cash 20,000
Debtors 10,000
James brown 4000
Rana Carriers 6000
Creditors 20,000
Santana 8000
Aldus 4000
Infotech 5000
Alaban 3000
Loan 10,000
Capital 150,000
Riverside buys its items for resale from the following companies.
Cornerstone p.o. box 23113 Nrb
Aldus International p.o. box 009870 Nrb
Santana Superchargers p.o. box 343333 Nrb tel 898833
Alaban Millers p.o. box 768303 Nku Tel 998655 Fax 876900
Riverside on the other hand sells to the following People.
James Brown p.o. box 778766 Atlanta.
Alphonse Master p.o. box 098789 Nrb tel. 909999
Crown paints p.o. box 778232 Ksm Tel. 782522
Rana Carriers p.o. box 90043 Nrb Fax. 09000
Multioptions Ltd p.o. box 662113 Msa. Tel 02-897657
Nairobi distributors p.o. box 1232122 Atlanta.
Riverside Buys and sells the following items.
Item in stock
Computers 300
Printers 200
Cables 150
Printing Paper 120
Books 1000
Televisions 250
Tax for anything electrical is 18% everything else is 15%.
RS also at the end of the month has to pay for the following items.
Rent
Electricity
Water
Telephone
Stationery
or anything else arising.
Riverside received the following documents on the dates shown.
1/1/97 Inv. 100 For purchase of two computers from Cornerstone 40,000/=.
2/1/97 Inv. 202 ,Purchase of a printer from Aldus 12,000/=.
7,1,97 Inv. 106, Purchase of 2 cables 700/= and Printing paper 500/= from Santana.
8/1/97 Inv. 444,Purchase of 20 books from Alban 4,000/=.
8/1/97 Inv. 445,Purchase of Printing paper from Alban 500/=.
10/1/97 Inv. 446, Purchase of Computer from Cornerstone 27,000/=.
17/1/97 Inv. 767, Purchase of Printer from Aldus 15,000/=
15/1/97 Inv. 747, Purchase of 10 cables from Santana.
RS sent the following.
20/1/97 Inv. 001 Sale of Printer to James 20,000/=.
21/1/97 Inv. 002 Sale of printer to Alphonse 22,000/=.
21/1/97 Inv. 003 Sale of Cables to Crown 6,000/=.
20/1/97 Inv. 004 Sale of TV to Multi 29,000/=.
21/1/97 Inv. 005 Sale of Books to Rana 7,000/=.
21/1/97 Inv. 006 Sale of paper to Nairobi 2,000/=.
21/1/97 Inv. 007 Sale of Cables to Crown 3,000/=.
20/1/97 Inv. 008 Sale of Computer to Multi 59,000/=.
21/1/97 Inv. 009 Sale of Cables to Rana 1,000/=.
21/1/97 Inv. 010 Sale of Books to Nairobi 4,000/=.
23/1/97 RS paid up invoice 202 completely CHQ 001.
23/1/97 RS paid up inv. 106 HALF CHQ 002.
23/1/97 RS paid inv. 767 Complete CHQ 003.
23/1/97 RS paid inv. 446 Quarter CHQ 004.
22/1/97 RS completed payment for inv. 106 CHQ 005.
24/1/97 RS received payment for inv. 004 CHQ 78789.
24/1/97 RS received payment for inv. 008 CHQ 7865 HALF PYMT.
24/1/97 RS received payment for inv. 010 CHQ 777117 FULL.
25/1/97 RS received pymt. inv. 002 FULL. CASH RCT 6654
25/1/97 RS received pymt. inv 001 FULL. CASH RCT 090
26/1/97 Cash received for sale of a computer 15,000/= RCT 002
27/1/97 Cash for sale for two books 1,000/= and 3 Cables 2,100/= Rct 3433.
28/1/97 RCT 3422 for cash purchase of 10 books 2,500/=
30/1/97 RS paid for the following.
Rent 10,000/=
Elec. 2,000/=
Water. 1,000/=
Casual Labour 2,000/=
Stationery 4,000/=
Telephone 2,000/= CHQ 0011
Donation to red cross 500/=
RS has also bought a new pickup NISSAN KAE 556T @30,000/=
Exercise 3
1) National Electronics co LTD deals in Radios, TV's Videos and other miscellaneous electronic goods. NEC obtains its supplies from authorized dealers in Nairobi and sells them to local distributors in provincial capitals.
NEC computerized its accounts starting in Jan 2003
.
You are required to install a COMPUTERIZED ACCOUNTS PROGRAM bearing in mind
Create the following Nominal Sales Accounts:-
Radio Sales
TV Sales
Video Sales
Miscellaneous Sales
and the corresponding Nominal Purchase Accounts:-
Radio Purchases
TV Purchases
Video Purchases
Miscellaneous Purchases
and also note that NEC incurs overhead costs in the following ;
Rents
Stationery
Petrol
Car Repairs
NEC has 4 main authorized dealers in the provinces to which it sells electronics. These are;
Name and Address
Central Electronics, P.O.Box 489 Nakuru
Electronic Distributors P.O.Box 409 Kisumu
Hi-Fi Technology , P.O.Box 16 Nyeri
Advanced Sound Systems, P.O.Box 1181 Mombasa
and the following 4 suppliers all based in Nairobi.
Great Wall Ltd, P.O.Box 6170, Nairobi
Sanyo Co.P.O.Box 2678, Nairobi
JVC - Kenya , p.o.box 2122 Nairobi
Phillips Kenya Ltd. P.O. Box 98485, Nairobi
The following figures relate to the opening balances as per the time of computerization.
Capital 50,000
Tax 2,000
loan 2,000
land 6,000
Machinery 5,000
Funiture & Fittings 2,000
Motor Vehicle 3,000
Bank 20,000
Cash 11,000
Central Electronics owed us 12,000
We owed Great Wall 8,000
We owed Sanyo 2,000
4. Process the following sales invoices in batches of 12 or less. Note that Kenya Government has set VAT at 18% and that the tax amount should be calculated via the Accounts Software.
NB: Enter the correct A/C Ref and N/C for each invoice detail. Incase of insufficient stock you may purchase more stock.
PURCHASE INVOICES
FROM: Great Wall
INV NO: 100 DATE: 13/1/94
QTY DETAILS EACH NET
10 Radios 1000 10000
20 Videos 5000 100000
FROM: JVC-KENYA
INV NO:760 DATE: 15/1/94
QTY DETAILS EACH NET
5 TVs 4000 20000
10 Power cables 100 1000
20 Radios 700 14000
FROM: Philips Electronics
INV NO: 819 DATE: 21/1/94
QTY DETAILS EACH NET
2 Videos 7,500 15000
5 Radios 500 2500
FROM: JVC -KENYA
INV NO: 583 DATE: 1/2/94
1 TV 10000 10000
SALES INVOICES
INV NO :600 DATE: 12/1/94
CUSTOMER: Central Electronics
QTY DETAILS EACH NET
2 Radios-sanyo 1600 3200
10 Videos-JVC 17000 170000
INV NO: 601 DATE: 16/1/94
CUSTOMER: Hi-Fi
QTY DETAILS EACH NET
10 Radios-JVC 1500 15000
2 Tvs-G.Wall 10000 20000
3 Power Cables 100 300
INV NO: 602 DATE: 17/1/94
CUSTOMER: Electronic distributors
QTY DETAILS EACH NET
5 TVs 10000 50000
3 Radios 1000 3000
10 Speaker stands 250 2500
INV NO: 603 DATE: 2/2/94
CUSTOMER: Advanced Sound Systems.
QTY DETAILS EACH NET
2 Videos 30000 60000
6. NEC made the following payments to their suppliers on 14/2/94;
Cheque NO: Company Inv NO: Amount
1681 Great Wall 100 Full Payment
1728 JVC-Kenya 760 Half Payment
NEC also received the following cheque payments on 12/2/94
Cheque NO: Company Inv. NO: Amount
221 HI-FI 601 Full Pwayment
231 Electronic
Distributors 602 Full payment
368 Advanced
Sound systems 603 Half Payment
7. On 13/2/94 NEC received cash payment from HIFI of 2000 for the sale of one radio ar a cost of 1640 and tax 360.
On 14/2/94 , NEC paid 6000 in cash to Philips Electronics for the purchase of 3 radios, made up of goods worth 4920 and tax 1080.
8. NEC sent a credit note (NO: 215) on 15/2/94 to HI-FI for an overcharge on invoice NO: 601 in respect of power cables. The nett cost was 50. Update your accounts and match off this credit note to the relevant invoice.
NEC also received the following credit note
CREDIT NOTE
CREDIT NOTE NO: 351 DATE: 25/2/94
INVOICE NO: 760 DATE: 15/1/94
QTY DETAILS EACH NET
5 TVs 4000 20000
9. On 1/3/94 NEC paid for the following expenses;
CHEQ NO: ACCOUNT NET
16801 Rent for JAN 15000
16802 Stationery 2500
16807 Petrol 250
16809 Car repairs 1250
Process the above bank transactions.
Exercise 4
1. Computer Setup Ltd. (COMP) is a leading computer company. It gets its supplies from its principals in Europe, America and Asia. These are sold at a profit through its assigned distributors.
Recently the company decided to computerize its accounts using Pastel Accountant.
You are required to install the software with the following features.
. Sales and Purchase accounts.
. Relevant Chart of accounts.
The lines of business are.
. Computer Purchases/Sales.
. Printer Purchases/Sales.
. Stationery Purchase/Sales.
. Diskette Purchase/Sales.
Business overheads are:-
. Rent
. Salaries
. Telephone
. Transport
Below are the details of some of their main customers.
CUSTOMERS
R Turbo limited P.o Box 34527 Nairobi Tel. 456632
R Duke computers ltd P.o Box 637378 Nairobi Tel 363737 Nairobi
R Campus 9 ltd P.o Box 464738 Nairobi
RHugo ltd P.o Box 4678 Nairobi Tel 578437 Nairobi
R Sempha group P.o Box 637738 Nairobi Tel 9083673 Nairobi
SUPPLIERS
R Sanchez ltd p.o. Box 478530 Brazil Tel. 0034/7893073
R Icl company p.o. Box 365739 U.S.A Tel 4563/896753 Detroit.
R Syms Ltd p.o. P.O Box 698845 France Tel 003/907856 France.
At the time of the computerization 7th January 1997, the following sums are already outstanding.
The total debtors figure was 202,000.
Its breakdown is as follows.
-30,000 /= due from Hugo ltd
-35,000 /= due from Duke computers
-70,000 /= due from Campus 9 ltd
-67,000 /= due from the sempha group
Total 202,000
-40,000 /= Sundry Debtors
-35,000 /= Cash at Bank
-40,000 /= Cash in Hand
-200,000 /= Land
The total creditors figure was 72,000
Its breakdown is as follows
-45,000/= owed to Sanchez ltd
-20,000/= owed to Icl company ltd
- 7,000/= owed to Syms ltd
Total 72,000
- Capital 500,000
- Loan 200,000
- Retained Profits 70,000
4. Process the attached sales/purchase invoices and sales/purchase credit notes bearing in mind that the government has set a VAT rate of 10%.
1997 Jan...
2.1. 2 computers from Sanchez @ 45000 each inv 002
3.1 2 printers from Sanchez @ 4000 each inv 323
5.1 4 Reams of paper from Campus 2000 inv 909
7.1 2 Printer cables from Icl 900 inv 11564
inv. no 516
date: 21-01-94
4 pieces of printer at 1233/= each from ICL
inv. no 483
date: 01-01-1997
3 pieces of Computer @ 1456/= from Sanchez
4 pieces of Printer @ 1200/= from Sanchez
2 pieces of Stationery @ 1300 from Sanchez
inv. no.290
3 pieces of Diskettes @ 1500 from Syms. Ltd.
2 pieces of Stationery @ 1250 from Syms. Ltd.
Inv. no. 117
10 piece of Diskettes @ 2000/= to Duke computers
3 pieces of printer @ 1700/= to Duke computers
inv. no. 121
30 pieces of Diskettes @ 1800/= to Campus 9
23 pieces of Stationery @ 2000/= to Campus 9
inv. no. 145
4 pieces of Stationery to Sempha Group @ 1567/=
6 pieces of Computer @ 1678/= to Sempha Group
5. Make the following payments dated 25.04.94
a) Cheque No. 216 to ICL in respect of full payment of Invoice No. 516
b). Cheque No. 278 to Sanchez for 50% payment of Invoice No.483
6. Process the following receipts received on 27.01.94
a) Cheque No. 4001 from Duke computers for full payment of Invoice No. 117.
b) Cheque No. 217 from Campus 9 for 25% payment of Invoice No. 121.
7. Process the following cash payments and receipts dated 28.01.94 by Garden Care Ltd.
a)
1. Receipt of 4000 for the sale of 4 pieces of Stationery made up of item cost 3280 and tax 720.
2. Sale of 3 pieces of Computer at 850 /= each
b) Payment of 12000 to Syms Ltd of France for the purchase of 120 pieces of Diskettes costing 9840 and tax 2160.
8. Computer Setup received Credit Note No. 5667 on 27.03.94 from Sanchez in respect of Invoice No. 483 for the net cost of 14560 (10 pieces Computer lost in transit). Match this credit note to the invoice.
9. At the end of April (30.01.94), Computer Setup paid for the
following expenses:
a) Cheque No. 685 for Repairs on the premise 1,000
b) Cheque No. 687 for April Office Stationery 2,500
c) Cheque No. 689 for transport at 400
d) A car was bought for 15000 cheque 560989
e) Casual labour cash 650/=
f) Entertainment (Hard Rock) 2000/= Cash
Ø Produce a printout of
1. The trial balance.
2. The fixed assets valuations report.
3. The profit and loss report and balance sheet.
4. List of the customers and creditors balances.
5. List of all the transactions.
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