Intermediate Accounting (ACCM3101)
Faculty of Economics and Management Science (FEMS)
Semester: First Semester
Level: 300
Year: 2018
Section A; COST ANALYSIS
Question one: (30mks)
On April 1, 2010, the following statement of financial position oh HIGHLANDS CLUB was
as follows:
Items
Liabilities
Capital fund 21,000
Creditors for general expenses 800
Assets
Furniture 5,200
Bar equipment 8,800
Bar stock 4,400
Subscription due 1,200
Bank 2,200
During the year to 31
st
March 2011, receipts and payment were as follows:
receipts Amounts (000fcfa) payments Amounts (000cfaf)
Bank balance
01/04/2010
2,200 Creditors for
expenses
800
Subscription 2010 800 General expenses 38,350
Subscription 2011 40,800 Bar expenses 16,250
Subscription 2012 600 Purchase of bar stock 29,200
Bar sales 51,200 Dance expenses 6,400
Furniture 3,200
balance 5,400
96,600 96,600
The following items must be considered on the 31
st
March 2011
a) Subscription owing for 2011 was 1,320,000frs
b) The balance of subscription owing for 2010 are bad debts
c) Stock for refreshment 4,200,000 frs
d) Value of bar equipment 8,000,000frs
e) Furniture to be depreciated at the rate of 25% p.a of book value
Required:
Prepare for the year to 31
st
March 2011
I. A bar statement of income (16 mks)
II. An income and expenditure account for the year (05 mks)
III. Statement of financial position as at 31
st
March 211 (9mks)
QUESTION 2 (10 mks)
On 01/01/2017 AARON, a small trader, had a cash balance of 10,000,000frs and delivery van
valued at 14,000,000frs. He did not keep proper books of accounts, but a careful analysis of his
business transactions revealed the following assets and liabilities after one year of trading.
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
1
st
Semester Exam Course: Intermediate Accounting: ACCT301
Credit Value:
Course Lecturers:
Time: Course Status: Date: 2018
Venue: Instruction:
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Item amounts
Delivery van 22,400,000
Stock 120,000
Trade creditors 3,500,000
Loan from joys 8,000,000
Office equipment 1,100,000
Trade debtors 7,800,000
Cash at bank 6,080,000
The bank statement shows that during the year, he had withdrawn 16,000,000frs for private
purposes and also that private investments had been sold for 7,000,000frs while the funds
realized had been left in the business. AARON decided to provide 4,800,000 frs as value for
depreciation on the delivery vans as at 31/12/2017
Requirement
a) Prepare the statement of affairs as at 1/01/2017 and 31/12/2017 (7mks)
b) Determine the profit or loss for the partnership ended 31/12/2017 (3mks)
QUESTON 4. (30 MKS)
The last balance sheet of X and Y partnership business, who share profits X 2/3: Y 1/3 is shown
below. On this date, they may dissolve the business
Balance sheet as at 31 December 2017
item Amount (000frs) Amount (000frs)
Non current assets
- Building
- Motor vehicles
Current assets
- Inventory
- Account receivable
- Bank
total assets
6,000
8,000
2000
16000
128,000
Current liabilities
- Account payable
(5,000)
Net assets
123,000
Financed by capitals: X
Y
82,000
41,000
TOTAL CAPITAL
123,000
The buildings were sold for 106,500,000frs and inventory for 4,600,000 frs. 6,800,000 frs was
collected from debtors. The motor vehicle was taken over by partner X at an agreed value of
9,400,000 frs and paid with a blank cheque. 5,000,000 frs was paid to settle the accounts
payables. A 400,000frs cost of dissolution was paid
Required:
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Make necessary accounting entries for the dissolution of the partnership. (that is, the accounting
entries in the following accounts: assets, liabilities, capital and the realization account opened
to dissolve the business) (30mks)
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