Advanced Accounting (ACCM3201)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 300
Year: 2017
Question one: 15 marks
The following information for the month of March 2007 is taken from the books of ESSONG
& Co Ltd.
1-Mar Purchases ledger balance 28,920,000 CR
Sales Purchases ledger balance 35,400,000 DR
ledger balance 252,000 CR
31-Mar Total for the month;
Sales journal 71,376,000
Purchase journal 55,560,000
Purchase returns journal 528,000
Sales returns journal 744,000
Cheque paid to creditors 56,280,000
Cheque received from debtors 56,592,222
Cash received relating to bad debts written off in June 2002 24,000
Cheque received from credit customers (include in cheque received
listed above) later dishonored
144,000
cash refunded to credit customers in respect of payment 12,000
cash purchases 6,960,000
discount allowed 828,000
discount received 876,000
increase in provision for doubtful debts 108,000
the total of balances in the sales and purchases ledger on 31 march
2007 were:
purchase ledger balances 27,672,000 CR
sales ledger balance 39,708,000 DR
sales ledger balance 192,000 CR
Required:
a) Select the appropriate figure from those given above and prepare a sales ledger control account
and a purchases ledger control account of ESSONG & Co Ltd for the month of March 2007.
b) List the items, which have not been entered in either control account. Briefly explain why each
of those items has been omitted from the control account.
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
1
st
Semester Exam Course: Advanced Accounting: ACCT301
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
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Question two: 20 marks
The following is a summary of Jane’s banks account for the year ended 31 December 20x2
(FCFA)
balance 1/01/20x1 4,000 payments to creditors for goods 67,360,000
receipts from debtors 91,190,000 rents 3,950,000
balance 31/12/20x2 6,300,000 insurance 1,470,000
sundry expenses 610,000
drawings 28200000
101,590,000 101,590,000
All of the business takings have been paid into the bank with the exception of
17,400,000FCFA. Out of this, Jane has paid wages of 11,260,000FCFA and purchase of goods
4,940,000FCFA. The following additional information is available. All figures in FCFA
31/12/20x1 31/12/20x2
stock 10,000,000 12,200,000
creditors for goods 12,700,000 14,100,000
debtors for goods 21,200,000 19,800,000
insurance prepaid 420,000 440,000
rents owing 390,000 --
fixtures at valuation 1,800,000 1,600,000
Work required: draw up the profit and loss account and the balance sheet for the year ended
31 December 20x2 showing all your workings’
Question three: 15 marks
You have been given the following financial statements of TAKE-STUDIES SERIOUS AS
AT 31/12/2007.
income statement for the year ended 31 December
2014 (000F) 2015 (000F)
Revenue 1,180 1,200
cost of sales -680 -750
gross profits 500 450
operating expenses -200 -208
Depreciation -66 -75
operating profits 234 167
interest (-) -8
profit before taxation 234 159
taxation -80 -48
profit for the year 154 111
balance sheet as at 31 December
non-current assets
property, plant and equipment 702 687
current assets
inventory 148 236
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trade receivables 102 156
cash 3 4
253 396
total assets 956 1,083
equity
ordinary share capital of 1F (fully paid) 500 500
retained earnings 256 295
756 795
non-current liabilities
borrowing-bank loan -- 50
current liabilities
trade payables 60 76
other payables and accruals 18 16
taxation 40 24
short-term borrowing (all bank overdraft) 81 122
199 238
total equity and liabilities 955 1,083
Dividends were paid on ordinary shares of 70,000F and 72,000F in respect of 2014 and 2015
respectively.
Required: calculate the following financial ratios for both 2014 and 2015 (using year-end
figures for balance sheet items):
i. Returns on capital employed.
ii. Operating profit margin.
iii. Gross profit margin.
iv. Current ratio
v. Acid test ratio
vi. Settlement period for trade receivables
vii. Settlement period for trade payables
viii. Inventories turnover period.
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Question four: 20 marks
G.G & Sons Enterprise owns a small business making and selling children toys. The following
trial balance was extracted from his books on 31/12/2012 in FCFA
capital 1,500,000
Drawings 200,000
sales 9,000,000
stocks on 1/01/2012:
Raw materials 340,000
Finished products 610,000
Purchase of raw materials 1,800,000
carriage inwards 80,000
factory wages 1,850,000
office salaries 1,690,000
P. Yong's salary and expenses 1,040,000
general expenses
factory 120,000
office 75,000
lighting 250,000
rents 375,000
insurance 95,000
advertising 140,000
bad debts 65,000
discount received 160,000
carriage outwards 37,500
plant and machinery at cost less depreciation 910,000
car at cost less depreciation 420,000
bank 360,000
cash 32,500
debtors and creditors 770,000
totals 11,260,000 11,260,000
You are given the following additional information:
1. Stock at 31/12/2012:
• Raw material 290,000F
• Finished goods 820,000F
• There was no work in progress
2. Depreciation for the year is to be charged as follows:
• Plant and machinery 150,000F
• Car 50,000F
3. At 31/12/2012, insurance paid in advance was 15,000F and office general expenses unpaid
7,500F.
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4. Lighting and rent are to be apportioned into factory 4/5 and office 1/5: insurance is to be
apportioned ¾ to factory and ¼ to office.
5. P. Yong is the business sales person and his salary and expenses are to be treated as selling
expenses, he has sole use of the business car.
Work required; for the year ended 31/12/2012, prepare;
1) A manufacturing account showing prime cost and factory cost of production
2) An income statement for the year ended 31/12/2012
3) A statement of financial position as at 31/12/2012
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