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Sagot :
### (a) Kila's Business Information:
#### (i) Name two prime entry books used to ascertain the above information. (2 Marks)
Two prime entry books typically used to record such business information are:
1. Purchases Journal (or Purchases Day Book): This is used to record all credit purchases made by the business. Here, the purchases on credit amounting to 14,000 would be recorded.
2. Sales Journal (or Sales Day Book): This is used to record all credit sales made by the business. Here, the sales on credit amounting to 36,000 would be captured.
#### (ii) Calculate the profit earned using the above information. (3 Marks)
1. Total Purchases:
- Calculate the total amount spent on purchases, which includes both credit and cash purchases.
[tex]\[ \text{Total Purchases} = \text{Purchases on Credit} + \text{Purchases for Cash} \][/tex]
Given:
[tex]\[ \text{Purchases on Credit} = 14,000 \][/tex]
[tex]\[ \text{Purchases for Cash} = 4,000 \][/tex]
So,
[tex]\[ \text{Total Purchases} = 14,000 + 4,000 = 18,000 \][/tex]
2. Total Sales:
- Calculate the total revenue earned from sales, which includes both credit and cash sales.
[tex]\[ \text{Total Sales} = \text{Sales on Credit} + \text{Sales for Cash} \][/tex]
Given:
[tex]\[ \text{Sales on Credit} = 36,000 \][/tex]
[tex]\[ \text{Sales for Cash} = 12,000 \][/tex]
So,
[tex]\[ \text{Total Sales} = 36,000 + 12,000 = 48,000 \][/tex]
3. Profit Earned:
- Calculate the profit earned by subtracting the total purchases from the total sales.
[tex]\[ \text{Profit Earned} = \text{Total Sales} - \text{Total Purchases} \][/tex]
[tex]\[ \text{Profit Earned} = 48,000 - 18,000 = 30,000 \][/tex]
Thus, the profit earned is 30,000.
### (b) State two reasons that cause cash at bank balance to disagree with the bank statement.
1. Outstanding Checks: Checks that have been issued by the business but have not yet been cleared or cashed by the recipients. This causes a temporary difference between the cash at the bank balance according to the company's records and the bank statement.
2. Deposits in Transit: Deposits that have been made by the business but have not yet been credited to the bank account. These are amounts that have been recorded in the business's cash book but have not appeared on the bank statement by the statement date.
(Note: While there may be other reasons such as bank errors or unnoted bank fees/charges, the above two are common reasons.)
#### (i) Name two prime entry books used to ascertain the above information. (2 Marks)
Two prime entry books typically used to record such business information are:
1. Purchases Journal (or Purchases Day Book): This is used to record all credit purchases made by the business. Here, the purchases on credit amounting to 14,000 would be recorded.
2. Sales Journal (or Sales Day Book): This is used to record all credit sales made by the business. Here, the sales on credit amounting to 36,000 would be captured.
#### (ii) Calculate the profit earned using the above information. (3 Marks)
1. Total Purchases:
- Calculate the total amount spent on purchases, which includes both credit and cash purchases.
[tex]\[ \text{Total Purchases} = \text{Purchases on Credit} + \text{Purchases for Cash} \][/tex]
Given:
[tex]\[ \text{Purchases on Credit} = 14,000 \][/tex]
[tex]\[ \text{Purchases for Cash} = 4,000 \][/tex]
So,
[tex]\[ \text{Total Purchases} = 14,000 + 4,000 = 18,000 \][/tex]
2. Total Sales:
- Calculate the total revenue earned from sales, which includes both credit and cash sales.
[tex]\[ \text{Total Sales} = \text{Sales on Credit} + \text{Sales for Cash} \][/tex]
Given:
[tex]\[ \text{Sales on Credit} = 36,000 \][/tex]
[tex]\[ \text{Sales for Cash} = 12,000 \][/tex]
So,
[tex]\[ \text{Total Sales} = 36,000 + 12,000 = 48,000 \][/tex]
3. Profit Earned:
- Calculate the profit earned by subtracting the total purchases from the total sales.
[tex]\[ \text{Profit Earned} = \text{Total Sales} - \text{Total Purchases} \][/tex]
[tex]\[ \text{Profit Earned} = 48,000 - 18,000 = 30,000 \][/tex]
Thus, the profit earned is 30,000.
### (b) State two reasons that cause cash at bank balance to disagree with the bank statement.
1. Outstanding Checks: Checks that have been issued by the business but have not yet been cleared or cashed by the recipients. This causes a temporary difference between the cash at the bank balance according to the company's records and the bank statement.
2. Deposits in Transit: Deposits that have been made by the business but have not yet been credited to the bank account. These are amounts that have been recorded in the business's cash book but have not appeared on the bank statement by the statement date.
(Note: While there may be other reasons such as bank errors or unnoted bank fees/charges, the above two are common reasons.)
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