ACCOUNTING FOR LAWYERS SAMPLE EXAM QUESTION

Theory of Double Entry

1.    Explain the 5 stages of double entry book keeping

2.    Name the two sides of an account

3.    What do you understand by the terms

a.    Real Account-

b.    Personal Account-

c.    Nominal Account-

4.    What is a Trial Balance?

5.    R. KITUR started business on 1st December 2012 when he paid KES 25,000,000 of his private money into the Business Bank a/c. He also had an opening stock of goods for resale worth  KES 1,800,000 and KES 500,000 in cash. 2012

Dec	2	He acquired equipment for KES 3,500,000 and paid by cheque
	3	He acquired a small secondhand motor van for KES 500,000 and also
paid by cheque.
	4	He bought goods for resale for KES 2,000,000 and paid by cheque
	10	Cash sales as at that date KES 2,460,000. Banked KES 2,000,000
	13	Buys goods valued at KES 400,000 from F. LEDAMA on credit
	15	Sells goods on credit to S. WALIBERA valued at KES 850,000
	16	Paid rent KES 200,000 for the month by cheque
	17	Paid wages for KES 160,000 to an assistant in cash
	18	Bought goods for resale worth KES 700,000 from T JOMENES on credit
	20	Paid F. LEDAMA the KES 400,000 outstanding by cheque
	21	Sold goods worth KES 560,000 to A. ADAMALI on credit
	24	Sold goods worth KES 580,000 to S. WALIBERA on Credit
	30	Paid assistants wages KES 160,000 in cash; Paid General Expenses

KES 70,000 in cash; He drew KES 500,000 out of the business for his personal expenditure in cash; Cash sales KES 3,840,000; Banked KES 3,000,000

QUESTION:

You are required to enter the above transactions in the appropriate accounts and extract a Trial Balance as at 31st December 2012

 Adapted from Kenyatta University School of Law by Rachel Eshiwani