b) Mema limited sells goods in returnable containers for which he charges a deposit of kshs.20 shs 15 refunded on return. Stock is valued at shs. 10 per unit and bought at prevailing market price. Opening balances were: Stock with customers 2,000 Stock at hand 1,500 During the year ended 31st December 2014 the following transactions were entered into Purchased stock 5,000 units @ kshs 12 Purchased stock 7,000 units @kshs.13 Charged to customers 50,000 units Scrapped at kshs.5 each 1,000 units Kept by customers beyond limit 2,000 units Containers held by customers but within acceptable limit is 4,000 units Required: a. Container stock account. b. Container suspense account. c. Profit statement (4 marks) (3 marks) (3 marks)
b) Mema limited sells goods in returnable containers for which he charges a deposit of kshs.20 shs 15 refunded on return. Stock is valued at shs. 10 per unit and bought at prevailing market price. Opening balances were: Stock with customers 2,000 Stock at hand 1,500 During the year ended 31st December 2014 the following transactions were entered into Purchased stock 5,000 units @ kshs 12 Purchased stock 7,000 units @kshs.13 Charged to customers 50,000 units Scrapped at kshs.5 each 1,000 units Kept by customers beyond limit 2,000 units Containers held by customers but within acceptable limit is 4,000 units Required: a. Container stock account. b. Container suspense account. c. Profit statement (4 marks) (3 marks) (3 marks)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:b) Mema limited sells goods in returnable containers for which he charges a deposit of kshs.20
shs 15 refunded on return. Stock is valued at shs. 10 per unit and bought at prevailing market
price.
Opening balances were:
Stock with customers 2,000
Stock at hand
1,500
During the year ended 31st December 2014 the following transactions were entered into
Purchased stock 5,000 units @ kshs 12
Purchased stock 7,000 units @kshs.13
Charged to customers 50,000 units
Scrapped at kshs.5 each 1,000 units
Kept by customers beyond limit 2,000 units
Containers held by customers but within acceptable limit is 4,000 units
Required:
a. Container stock account.
b. Container suspense account.
c. Profit statement
(4 marks)
(3 marks)
(3 marks)
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