Principles of Accounting (ACCT201)
Faculty of Economics and Management Science (FEMS)
Semester: First Semester
Level: 200
Year: 2019
Question 1 (10 marks)
Identify whether a debit or credit yields the indicated change for each of the following
accounts.
a. To increase land
b. To decrease land
c. To increase utilities expense
d. To increase fees earned
e. To decrease unearned revenue
f. To decrease prepaid insurance
g. To increase notes payable
h. To decrease account receivables
i. To increase common stock
j. To increase store equipment
Question two: (20 marks)
Kingsway Ltd carried out the following transactions during the month of January 2017;
Date Transaction 000FCFA
1 Bought goods on credit 159,000
2 Cash sales banked immediately 100,000
8 Bought a motor van paid immediately as follows: one quarter in cash and the
balance by cheque.
3,000,000
10 Goods sold on credit to customers 400,000
18 Transferred cash from bank 10,000,000
20 Owner puts in cash to the business 1,000,000
22 Goods that cost 500,000F were sold to a customer in cash 650,000
25 Bought goods on credit 100,000
28 Custer paid his account by cheque 40,000
29 Sold goods on credit 150,000
30 Received a cheque from customer in full settlement of the transaction dated
January 10
th
350,000
Required: Record the above transactions in a classical journal.
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
First Semester C.A Course: Principles of Accounting: ACCT201
Credit Value:
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Venue: Instruction:
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