John Enterprises ... Continued

John was very happy with the record keeping but one day the pieces of paper on which he recorded the creditors disappeared and subsequently, he was not able to tell how much he was owed by his creditors. John found it difficult to reconstruct the credit from his memory.

In 2008, the Kenya Revenue Authority staff visited John’s business and demanded to see John’s records. John was surprised to hear that he was required to maintain records for inspection by the Kenya Revenue Authority staff. The KRA staff gave him one month to prepare the records. John did not know where to begin.

John Enterprises (20 minutes)

Gather into groups of five and discuss this case. In your journals record:

• How effective in your opinion was John at record keeping?
• Identify the records that John should maintain to meet the requirements of the KRA.
• In the group’s opinion, what methods could John employ to improve his system