Define the term an accounting cycle. 2. Briefly, outline and explain each of the steps of...

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Define the term an accounting cycle. 2. Briefly, outline and explain each of the steps of the accounting cycle. 3. Explain the following terms (1) Journalization (11) Posting Adjusting an entry Reversing an entry (111) (iv) 4. What is the difference between nominal ledger and a real ledger. 5. On 1¹ Jan, 2010 KBLD Ltd rated a go down in industrial area. The agreement provided the payment of sh.500, 000 per year for 3years, payable in advance. Required:- (a) Show ledger entries when the transaction was effected. (b) Show adjusting entries necessary as at 31 Dec, 2010 and as 31st Dec 2011. 6. Omo dry cleaners offers cleaning services to Starehe Group of Hotels. On 1st Jan, 2010 Omo Dry cleaners received a cheque of sh.60, 000 for two years future services starting from 1 July, 2010. Required:- (a) Show ledger entries showing amounts that should be reflected in the ledger books, ie in the books of Omo dry cleaners. (b) Show appropriate adjusting entries for the years ended 31* Dec, 2011 and 2011. 7. (a) Which items are normally reversed? (c) The casual laborers in Del mo (k) Itd are paid after a period of 7months having been employed as at 1st July, 2010. The payroll bill in relation to casual laborers is sh.200, 000 per year. Required;- (a) Show appropriate adjusting entries in appropriate ledger accounts. (b) Show appropriate reversing entries in appropriate ledger accounts. Define the term an accounting cycle. 2. Briefly, outline and explain each of the steps of the accounting cycle. 3. Explain the following terms (1) Journalization (11) Posting Adjusting an entry Reversing an entry (111) (iv) 4. What is the difference between nominal ledger and a real ledger. 5. On 1¹ Jan, 2010 KBLD Ltd rated a go down in industrial area. The agreement provided the payment of sh.500, 000 per year for 3years, payable in advance. Required:- (a) Show ledger entries when the transaction was effected. (b) Show adjusting entries necessary as at 31 Dec, 2010 and as 31st Dec 2011. 6. Omo dry cleaners offers cleaning services to Starehe Group of Hotels. On 1st Jan, 2010 Omo Dry cleaners received a cheque of sh.60, 000 for two years future services starting from 1 July, 2010. Required:- (a) Show ledger entries showing amounts that should be reflected in the ledger books, ie in the books of Omo dry cleaners. (b) Show appropriate adjusting entries for the years ended 31* Dec, 2011 and 2011. 7. (a) Which items are normally reversed? (c) The casual laborers in Del mo (k) Itd are paid after a period of 7months having been employed as at 1st July, 2010. The payroll bill in relation to casual laborers is sh.200, 000 per year. Required;- (a) Show appropriate adjusting entries in appropriate ledger accounts. (b) Show appropriate reversing entries in appropriate ledger accounts.

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Answer Accounting Cycle The accounting cycle refers to the sequence of activities or steps that a business follows to process financial transactions and prepare financial statements It involves record... View the full answer