Answer any four questions.


1. You are operating a carpentry workshop in your home town.

a) Design a signpost for your business.                (5 marks)

b) Design a sample of an invoice that will be used to customers who purchase on credit.                            (8 marks)

c) Design a business card for your sales manager.        (5 marks)

d) Write a letter to the town clerk requesting for renewal of your operating license.                                    (7 marks)


2. a) Distinguish between a purchases daybook and a purchases returns book.                                        (4 marks)

b) The following transactions were extracted from the books of Mukwaya Enterprises for the month of August 2009.

1st     Bought goods from Gertrude

Shs. 700,000

2nd     Bought goods on credit from Bwanika

Shs. 526,000


Shs. 460,000

8th     Returned some goods to Gertrude

Shs. 86,000

9th     Returned some goods to Bwanika

Shs. 26,000

12th     Received invoices from Ouma



Shs. 480,000

15th     Credit purchases from Mukiibi

Shs. 350,000

17th     Credit sales from Nakate

Shs. 744,000

23rd     Received invoices from invoices from Ssegujja

Shs. 332,000


Shs. 432,000


Shs. 210,000

27th     Received credit notes from Ssegujja

Shs. 30,000


Shs. 18,000

28th     Issued a credit note to Nakate

Shs. 44,000



i) Enter the above transactions in the purchases journal and Returns outwards journal of Mukwaya Enterprises for the month of August 2009.                                                (9 marks)

ii) Thereafter, post the transactions to their respective purchases ledger and the general ledger accounts.                            (12 marks)



3. You have secured a loan of shillings 10,000,000 from Centenary (U) Ltd to start a poultry project.

a) Prepare a financial plan for your business.                (7 marks)


b) Design a receipt to be issued to customers who buy on cash basis.

(5 marks)

c) Write an advert for the post of a marketing manager to be put in a national newspaper.                                (6 marks)

d) Present an Organisational chart for your project.            (7 marks)


4. You are operating a bakery in your home.

a) Describe the various channels of distribution that you can use.    

(8 marks)

b) What factors do you consider when choosing packaging materials?

                                            (6 marks)

c) How do you promote the sales of your business?            (5 marks)


d) What measures can you undertake to ensure production of quality goods?                                        (6 marks)


5. The following information was got from the books of accounts of LAN Enterprises Ltd for the month of May 2013.

1st         May Balances cash in hand

Shs. 580

b/f         Bank overdraft

Shs. 14,700

3rd May     Further capital paid into the bank

Shs. 10,000

4th May    Bought furniture by cheque

Shs. 78,000

6th May    Cash sales

Shs. 2,200

7th May    Banked cash

Shs. 2,000

9th May    Paid the following by cheque in each case             deducting 2% cash discount Simon

        shs. 800, Jaiden Shs. 2,400, Maggie Shs. 4,000


10th May    Cash sales to date

Shs. 5,000

12th May    paid motor expenses in cash

Shs. 770

15th May    Cash withdrawn from the bank

Shs. 4,000

17th May    Cash drawings

Shs. 12,000

18th May    Received Cheques from the following in each             case deducting 5% discount, Suzan shs. 800,             Fred Shs. 1,400 and Irene Shs. 2,200.


19th May    Salaries paid in cash

Shs. 2,100

21st May    Paid insurance by Cheque

Shs. 1,500

24th May    Bought motor van, paying by cheque

Shs. 49,000

27th May    Buule paid us his account in cash

Shs. 2,040.



a) Write up a three column cash book using the information above of LAN Enterprises Ltd and balance off at the end of the month.        (22 marks)

b) Show the discount accounts in the general ledger.            (3 marks)


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