Earlyface

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(1a)
Cash book: this is a double entry account used
to
record cash transactions and also transactions
with
the bank. It is a subsidiary book and also
performs
the function of a ledger.
(1b)
(i) it provides a written record which is essential
for
the proper conduct of business.
(ii)the existence of reliable financial records
help in
management decision making.
(iii)good book-keeping practise enables one to
ascertain the profit or loss made during a
trading
period.
(iv)it make it possible to find out how a
business
stands in relation to its customers
(v)it facilities reference making to past
transactions.
(vi)it shows purchase and sales made within a
given
period.
(vii)it also facilitates inter-firm
comparison_________ ___________________ ________
_
(1c)
(i)invoice
(ii)credit note
(iii)debit note
(iv)petty cash voucher
(v)receipts
(iv)it make it possible to find out how a
business
stands in relation to its customers
(v)it facilities reference making to past
transactions.
(vi)it shows purchase and sales made within a
given period.
(vii)it also facilitates inter-firm comparison
(2ai)
Assets: the assets are set out in order of
permanence or liquidity.it is the possession of
an
organisation which creates revenue for the
business.the two classification of assets are;
current and fixed assets.
(2aii)liability: this can be defined as business
indebtedness which is acquired for business
purposes but has to be repaid at the agreed
period.it is classified into short term and long
term liability.

Verified ACCOUNT OBJ:
1-10: cacddcccca
11-20: ccadaddbdc
21-30: dbdbcaccbd
31-40: bddcbcbbba
41-50: accbcbdadc

(9) BALANCE SHEET AS AT 30/9/2012 Debit side Ordinary share
(156,000) Reserve/Net Profit (65883) Long term liability/6%
Debenture (45,000) C/L Creditors(34730) Rent(2440)=37170
Total= (298053) Credit Side Fixed assets Premises(127500)
Plant & manchinery(165900) Less exp (38100) C/A Stock
(48219) Debtors(31664) Bank(22890)=162773. Total=298073
(9b) i. (C/A-stock)/CL= (102773-48219)
/347303=54554:34730/1.57:1 ii. Capital emloyed = Total
asset- Current Liability =298073-37170=260903 iii. Working
capital=CA-CL =102773-37170=65603 iv. CA:CL=102773:37170=
2.76:1

(7)
TRADING PROFIT AND LOSS ACCOUNT FOR THE
YEAR ENDED 31ST/12/2010
Debit Side
Stock(85716)
Purchases(389814)=475530
Return Outward(165)=475365
Less Stock(9500)=380365
G.P(157375)=
Rent&rate(7500+4000)= 11400
Insurance(8000-2800)= 5200
General Expenses=9000
Salaries(59628+7000)=66628
Interest=5000
Bad debt=1629
Provision for bad debt=3029
Directors salaries=28000
Depreciation M.v 20%*12000 =24000
Net Profit= 3389
Total= 157375
Credit side
Sales(538266)
Return inward(526)=537740
G.P (157375)
total=(157375)
PROFIT AND LOSS APPROPRIATION A/C FOR
THE YEAR ENDED 31/12/2010
Debit side
Proposed Dividend
10/100*100000 =10000
Retained Profit = 80789
Total= 90789
Credit side
N.p B/D (3389)
Balance B/D (87400)
Total= 90789

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Answers Now Posted
(2b)Fairly elastic because the coefficent is greater
than one(1)
(2bii)Competitive supply.
(2d)
(i) increase in demand
(ii)fall in the cost of production
(iii)favourable climate condition
(iv)increase in government grants and subsidy.
(3a)
occupational mobility of labour: it refers to free
movement of labour from one occupation, work
place and geographical area to another.
(3b)
-marriage
-promotion
-climate
-bad management
(3c)
-Educational and training
-Promotion
(5ai)
Public limited liability company is owned by
minimum member of persons without maximum
numbers whereas ownership of private limited
liability company range from minimum number of
two to maximum number of 50.
(5aii)The shares of a public limited liability
company is issued to the members of the public
directly on the floor of the stock market,whereas
the shares of a private limited liability company is
issued to selected persons.
(5aiii) public limited liability company are required
to publish their financial statement for public
view ,whereas private limited company are not
allowed to public their financial statement.
(5aiv)The name of the public PLLC must end with
plc whereas the private LLC must end with Ltd.

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