Accounting for Specific Organisations (ACCM4101)
BSc. Accounting - ACC
Semester: First Semester
Level: 400
Year: 2019
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THE UNIVERSITY OF BAMENDA/UNIVERSITE DE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING
1
st
Semester Examination 2018/2019 Academic year Level: 400
Course code and title: ACCM 4101 Specific Accounting Credit Value: 5
Course Status: C
Course Lecturers: Ndinga
Venue: PBA07/PBA08/PBA03 Date: 05/03/2019 Time: 13:00 - 15:00
Instructions: Attempt
all the questions. COBAC Charts of Accounts are allowed with the use of three-digit
accounts in keeping accounting records
This paper carries three independent exercises as follows:
Exercise N°- 1: DAILY TRANSACTIONS IN BANKING INSTITUTIONS /30 Marks
An extract of the transactions carried out by ABC Bank Pic during the month of January 2019 is provided as follows:
Jan 03: A cash subvention of 3 000 000 CFAF is received from COBAC to cover part of the cost of production of bank cards.
A second cash subvention of 5 000 000F is received from the state to finance the acquisition of an ATM.
Jan 05:
Jan 08: A loan of 50 000 000 CFAF is obtained from the central bank at the simple interest rate of 4% p.a andloan
processing commission at 2% (liable to VAT) with the commission deducted from the loan principal and the
interests to be paid during loan amortisations
Jan 10: An order for a service car is sent to CAM! Toyota with an advance on account of 3 000 000 CFAF by a correspondent
bank cheque.
Jan 12: An overdraft of 200 000 CFAF is paid to a customer at the interest rate of 5%.
Jan 15: Payment of annual rents at 450 000 CFAF per month by a UBA cheque. UBA is a correspondent bank to ABC.
Jan 16: Payment of 4 000 000 CFAF received from bondholders.
Jan 17: Payment of 450 000 CFAF for business licence for the year.
Jan 19: Acquisition of a counterfeit detecting machine in cash for 357 750 (Inch VAT).
Jan 20: Payment of electricity bill from ENEO in cash: 298 125F (Incl. VAT).
Jan 23: A withdrawal of 5 000 000 CFAF is made by XYZ Finance Ltd, a corresponding bank.
Jan 25: Payment of 500 000 CFAF by a UBA cheque to train the workers on a newly acquired software.
Jan 26: Acquisition of a new software for 1 500 000 CFAF cash (Excl. VAT).
Jan 27: A term deposit of 20 000 000 CFAF at the rate of 12% per annum is made by a client with the interest paid for the
first year to run till Feb 01 of next year.
Jan 28: A CAMTEL Bill of 143 100 CFAF is received and paid in cash.
Jan 29: An interest of 50 000 CFAF is received from a long-term loan granted to a customer.
Required: Journalise these transactions for ABC Bank Plc.
EXERCISE N°-2: A CCOUNTING PRINCIPLES /10 marks.
Give answers to the following:
i The accounting principle that requires companies and owners to be accounted for separately is .................................
ii Companies not disclosing an imminent bankruptcy would violate the..................................................... concept.
iii The assumption that states that businesses can divide up their activities into artificial time periods:
iv Assets are recorded at their original purchase price according to the:
v When estimating unearned revenues, what principle applies?
vi Switching accounting principles every year would violate the:
vis Recording expenses and revenues in the same period in which they occur:
viii A business did not report an asset obtained through a leasing contract in her balance sheet with the assumptionthat she is not the
legal owner of the asset. Which accounting concept has been violated?
ix The accounting system which prescribes for similar operations of a period to be summed up and recorded once is
known as:
x The law underlying the accounting procedures to be applied in financial establishments is:
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Exercise N°3: DAILY TRANSACTIONS IN MICROFINANCE ESTABLISHMENTS /30 Marks
An extract of the transactions carried out by a Cooperative Credit Union during the month of January 2019 is provided as follows:
Jan 03: A cash subvention of 3 000 000 CFAF is received from CAMCCUL to cover part of the cost of production of bank
cards.
Jan 05: A second cash subvention of 5 000 000F is received from the state to finance the acquisition of an ATM.
Jan 08: A long-term loan of 50 000 000 CFAF is obtained from the CAMCUL with a loan processing commission of 2% (liable
to VAT) with the commission deducted from the loan principal.
Jan 09: A building to be used for the operations of the credit union is bought and paid for by a correspondent bank cheque at
the cost of 15 000 000 CFAF.
Jan 10: A stock of documents (passbooks, cheque books, etc) is acquired on credit from CAMCCUL to be resold to customers.
An overdraft of 200 000 CFAF is paid to a customer at the interest rate of 5%.
Jan 12:
Jan 15: Payment of monthly rents at 400 000 CFAF per month by a UBA cheque. UBA is a correspondent bank. Payment of 4
Jan 16: 000 000 CFAF received from members for shares.
Jan 17: Payment of 450 000 CFAF for business licence for the year.
Jan 19: Acquisition of a counterfeit detecting machine in cash for 357 750 (Inch VAT).
Jan 20: Payment of electricity bill from ENEO in cash: 298 125F (Inch VAT).
Jan 23: A withdrawal of 5 000 000 CFAF is made by members from their housing saving scheme.
Jan 25: Deposits of 500 000 CFAF made by members into their passbook accounts.
Jan 26: Acquisition of a new software for 1 500 000 CFAF cash (Excl. VAT),
Jan 27: A term deposit of 2 000 000 CFAF at the rate of 5% per annum is made by a member with the interest for the first year
paid in cash.
Jan 28: A CAMTEL Bill of 143 100 CFAF is received and paid in cash.
Jan 29: An interest of 50 000 CFAF is received from a long-term loan granted to a customer.
Required: Journalise these transactions for the Credit Union.
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