Company Accounting (ACCM4202)

BSc. Accounting - ACC

Semester: Second Semester

Level: 400

Year: 2019

Answers (200 )
Page 1 of 2
THE UNIVERSITY OF BAMENDA/UNIVERSITE BE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES ACCOUNTING DEPARTMENT
Second Semester Examination 2018/2019 Academic year
Course code and title: ACCM 4202- Company Accounting Year 3 status: compulsory
Date: 03/07/2019 time: 10:30-12:30 Venue: PBB07, PBB08
Course instructors: Mr. NDJAHA /Mr. BODANG
Instructions: Treat all sections
Section1: Constitution and functioning of commercials companies/35marks
Maigod PLc, P.0 5191, Bamenda was formed on the 1/01/2016 with a capital divided into shares of 15 000F
each, made of:
Contributions in kind: this was made by Neba who brought his balance sheet presented as follows as at
31/2/2015:
Assets
Gross Amt
Prov/Dep
Net amount
Liability
Amount
Commercial building
Transport equipment
Stock of goods
Customers
16 000 000
43 000 000
35 000 000
4 600 000
2 000
000 13 800
000 200 000
600 000
14 000 000
?
34 800 000
?
Capital
Reserves
borrowing
supplier
?
2 500 000
2 000 000
8000 000
Contribution in cash: it was subscribed by Muluh and Mbuh
The legal minimum was called at the formation with latest date of payment being the 31/01/2016. All payments
were made to a public notary who deposited on the 02/02/2016 in the company’s bank account open at NFC
Bank after deduction of his payment. The report received from the Public Notary shows that:
The net deposited in bank account was 15 625 000F
Public notary fees deduced was 125 000F
Mbuh, owner of 20% of total cash shares paid % of his contribution
You are Required to:
1- Define nominal value, mathematical value, financial value and return value (4marks)
2- List three types of commercial company (3marks)
3- Differentiate Statute interest from super dividend (2marks)
4- Indicate the latest date the remaining capita! of the company was to be call z&(2marks)
5- Calculate the number of shares subscribed by Neba, Muluh and Mbuh (5+3+2=10marks)
6- Calculate the capital of the company (2marks)
7- Make accounting entry of the formation (7marks)
8- Prepare the initial balance sheet of Maigod PLC (5marks)
Section2 : Modification of capital/35 marks
WALOCAM is a Pic located in Ndop and specialised in the manufacturing and sale of a finished
product P.
This company was created on the 14
th
/08/2010 with a capital of 189 000 000Fcfa divided into shares in kind
and cash of 21 000Fcfa each.
At the formation, the contributions in kind (Office Equipment and Commercial Buildings) were entirely paid,
and the cash contributions were paid up for half; however, the holders of 1 500 shares in cash paid up all what
they subscribed for. The last quarter of cash contributions was called up on the 26*712/2012 and paid up on the
05
th
/l/2013 by bank cheque.
On the 02
nd
/3/2012, the company decided to increase its capital by 80% on the basis of the arithmetic mean of
the mathematic value (28 560Fcfa) and the market price (33 000Fcfa) as follows;
Issue of new shares in kind and new shares in cash at 24 300Fcfa.
Incorporation of optional reserves with distribution of bonus shares.
For the double increase of capital;
Only the old shareholders (holders of new shares included) can benefit from the distribution of bonus shares.
The premium is 3 300 000fefa.
The mathematic value after the double increase is 21 600Fcfa.
REQUIRED:
1. What is the type of double increase carried out by this company? (1 mark)
2. Calculate the number of new shares in kind. (2 marks)
3. Calculate the number of new shares in cash. (4 marks)
4. Calculate the number of bonus shares. (2 marks)
5. Calculate the value of the subscription right. (3 marks)
6. Calculate the value of the attribution right. (4 marks)
7. Mr DAN I, an old shareholder and holder of 840 old shares subscribed for 640 new shares and 700 bonus
shares. Calculate the number of irreducible rights and the number of reducible rights in the two cases. (4
marks)
8. Make the entries related to the increase of capital by issuing of new shares on the 02
nd
/3/2013, given that
the contribution in kind was paid up on the 08
th
/3/2013 and includes;
-Transport equipment worth 38 200 000Fcfa
-Suppliers for 20 600 000Fcfa and raw materials to be determined;
-The contribution in cash was paid up on the 10
th
/3/2013 for the legal minimum by bank cheque but the holders
of 500 shares in cash paid 90% of their subscription; lawyer’s fee (420 000Fcfa) and registration fees paid on
the 11
th
/3/2013 by bank cheque (10 marks)