Answer Happy

(a) Ken had the following debtors balance as at 31 st December2021Debtor Age of the debtor Amount Ksh.Limo 20 days 20,000Njeri 40 days 50,000Beth 60 days 15,000Mary 33 days 22,000Karis 46 days 30,000Dan 64 days 42,000Peter 51 days 38,000Kelly 72 days 60,000Total 277,000Required(i) Prepare a debtor’s aging schedule for categories of under 30Days, 30-45 days, 46-60 daysand above 60 days. (3 marks)(ii) Ken’s credit policy is 30 days. He provides for bad anddoubtful debts at 3%, 5% and 10%for debts aged 30-45 days, 46-60 days and over 60 daysrespectively. Compute the provisionfor bad and dutiful debts as at 31 st December 2021 ( 3marks)(b) Funsi Ltd’s statement of financial position had differentcategories of asset as at 31 st December,2021. State and explain three accounting concepts observed todisclose these assets. Illustratewith examples. (6 marks)(c) Kezia Enterprises sold goods to Helen for sh. 600,000 on 1 stJanuary, 2021 on terms 5/30, net 60.A debt of sh. 400,000 was settled on 28 th January 2021 and thebalance on 29 th February, 2021Required(i) Explain the meaning of the term 5/30,net 60 (2 marks)(ii) Using the Gross method, prepare the journal entries in thebooks of Kezia Enterprises (3marks)(iii) Using the net method, prepare the ledger accounts in thebooks of Kezia Enterprises (3marks)