(c) The trial balance of Mutua Traders as at 30 September 2015 did not balance. On investigation, the following errors were discovered:
L. A loan of Kshs 40,000,000 from XYZ Banks had been correctly entered in the Cash Book, but
posted on the wrong side of the loan account.
ge
2. The purchase of equipment on credit for Kshs 57,200,000 had been recorded by debiting the
supplier's account and crediting the equipment repairs account,
3. A cheque of Kshs 1,600,000 from Ol Ltd, a customer was correctly entered in the cash book, but
was credited to the bad debts recovered account. The accountant mistook it for a receipt from Ol
Ltd, a customer whose debt had been written off two years earlier.
4. Bank charges of Kshs 760,000 had not been entered in the organization's cash book. c
5. Discounts allowed of Kshs 3,680,000 and discounts received of Kshs 7,940,000 had not been
posted to the respective discount accounts, mano
6. Ten motor vehicles were purchased on 1 August 2015 for Kshs 32,000,000. The payment was
correctly entered in the cash book, but was debited to motor expenses account.
Depreciation on motor vehicles is provided for at the rate of 20% per annum on cost.
Required:
0 Journal entries with narrations to correct the errors
(8 marks)
​

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.