Advanced Accounting (ACCM3201)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 300
Year: 2017
Question one: 15 marks
Using the information below, prepare in good format (indirect method) a statement of cash
flows for EDDY ltd. Information from the December 31, 20x1 balance sheets are presented
below:
items 20x2 000 FCFA 20x1 000 FCFA
cash 30,000 50,000
account receivable, net 410,000 460,000
inventory 300,000 320,000
prepaid expenses 20,000 15,000
long-term investments 50,000 25,000
land 560,000 300,000
building and equipment 2,000,000 1,900,000
accumulated depreciation -800,000 -770,000
2,570,000 2,300,000
account payable 300,000 120,000
accrued liabilities 40,000 50,000
bonds payables 500,000 800,000
long term note payable 150,000 0
common stock 2,000F par value 200,000 160,000
paid-in capital in excess of par value 710,000 550,000
retained earnings 670,000 620,000
TOTAL 2,570,000 2,300,000
Additional information about 20x2 transactions and events:
a) Net income was 110,000,000FCFA
b) Depreciation expense on buildings and equipment was 60,000,000FCFA
c) Sold equipment with a cost of 50,000,000FCFA and accumulated depreciation of
30,000,000FCFA for cash of 17,000,000FCFA
d) Declared and paid cash dividends of 60,000,000FCFA
e) Issued a 150,000,000FCFA long-term note payable for building and equipment.
f) Purchased long-term investments for 25,000,000FCFA
g) Paid 300,000,000FCFA on the bonds payable
h) Issued 20,000 shares of 2,000FCFA par value common stock for 200,000,000FCFA
i) Purchased land for 260,000,000FCFA
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
2
nd
Semester C.A Course: Advanced Accounting: ACCT301
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
www.schoolfaqs.net
Question two: 15marks
MTN, ORANGE & CAMTEL are in partnership sharing profits and losses equally. Their
balance sheet as at 31/12/2013 was as follows:
ASSETS AMOUNTS LIABILITIES AMOUNTS
furniture 40,000,000 capital account:
stock 7,500,000 MTN 30,000,000
debtors 1,500,000 ORANGE 10,000,000
cash 6,000,000 CAMTEL 5,000,000
creditors 10,000,000
55,000,000 55,000,000
The partners have decided to dissolve the partnership from this balance sheet date.
On 1
st
March 2014, furniture was sold for 33,000,000F and the selling expenses amounted to
2,000,000F. The creditors were to be paid off on this date and the balance distributed to the
partners for the first time
On the 1
st
April 2014, stock receipts amounted to 6,000,000F and immediately distributed to
the partners.
By 1
st
May 2014, debtors realized 600,000F and the balance was irrecoverable. The final
distribution was done.
Task: show the amount paid to each partner upon completion of the dissolution.
www.schoolfaqs.net
