John, a farmer, constructed a farmhouse on 2 January 2005 for Sh.6,000,000 and incurred the following additional expenditure: Sh. 2.1.2005 30.6.2005 30.9.2005 30.10.2005 Cattle dip Irrigation system Labour quarters Milking machinery 1,000,000 1,500,000 2,400,000 1,120,000 John sold the farm on 2.1.2006 to his brother, Peter, who is also a farmer. […]

Distinguish between farm works deductions and capital deductions.

Mr. Joe has two offers for employment in two engineering firms. The details of the two offers are as follows: Firm A Sh. Firm B Sh. Basic pay per month Benefits: Housing (market rent) p.m. Car 1600cc (cost) 45,000 50,000 600,000 41,000 60,000 600,000 Pension scheme which is registered by […]

Explain the matters that have to be considered in respect of a system of internal control for cash sales in a service station that sells petrol and repairs motor vehicles. (20 marks)

a) What are the main objectives of an internal control system? (5 marks) b) What are the disadvantages of rigidly adhering to a system of internal control? (5 marks)

The following prices and quantities reflect the average weekly consumption patterns of a certain family for the years 2001 and 2001. Year 2001 Year 2002 Item Price (po ) Sh. Quantity (qo ) Price (pt ) Sh. Quantity (qt ) Oranges (Kg) 15 2 25 1 Milk (Litres) 30 2 […]

Explain the following terms as used in index numbers: (i) Price index (3 marks) (ii) Quantity index (3 marks) (iii) Composite index (3 marks) (iv) Value index (3 marks)

Richex Limited has provided the following profit and loss account for the year ended 31 December 2005: Profit and Loss Account for the year ended 31 December 2005 Sh. Sh. Opening stock Purchases Manufacturing expenses Salaries and wages Supplies consumed General expenses Interest on loan Commission and brokerage Director’s fees […]

Regress S on ASVABC, SM, and SF, where S is the number of years schooling, ASVABC is a measure of cognitive ability, SM is the respondent’s mother’s schooling years, SF is the respondent’s father’s schooling years, and MALE is a dummy variable that is 1 for male respondents and 0 […]