Principles of Accounting (ACCT201)
Faculty of Economics and Management Science (FEMS)
Semester: First Semester
Level: 200
Year: 2019
Question one (10 marks)
Briefly explain the following concepts:
a) Matching concept
b) Accrual concept
c) Prudence concept
d) Periodicity concept
e) Duality concept
Question two (15 marks)
MADUM ltd carried out the following transactions during the month of December 2016
Date Transactions 000FCFA
1 Bought goods on credit from suppliers 15,000
2 Sales of goods with settlement half by cash and the rest on credit 10,000
8 Bought a motor van paid immediately as follows; one quarter in cash and the
balance by cheque
3,000
18 Withdrew cash from bank for business use 5,000
20 Owner puts in cash to the business 1,000
22 Paid salaries by cash 6,500
28 Customer paid his account by cheque 4,000
Required; record the above transactions in a classical journal
Question three (20 marks)
Bomka, a sole trader uses an analytical petty cash book with columns for travelling, postage
and stationery, motor expenses, cleaning and ledger account. The petty cash system is based
on an interest of 100,000F which Bomka replenishes on Monday following the period of
expenditure. The following information is available for the month of July 2016:
Date FCFA
1 Interest established by bank cheque 100,000
2 Petrol 4,000
3 Postage stamps 1,500
4 One ream of typing papers 3,000
6 Habon Lyn: settlement of account 15,000
7 Office cleaning material 2,000
8 Motor repairs 4,000
10 Refund of a clerk taxi fare 2,000
14 Car polish 3,000
16 Petrol and oil 7,000
18 Registered mail 2,000
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
Semester Exam Course: Principles of Accounting: ACCT201
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
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20 Office carpet shampoo 1,000
21 Petrol 7,000
25 Petrol 6,000
27 Jaika L. Settlement of account 25,000
28 Payment for bus ticket 6,000
29 Payment for carbon paper 4,000
Required;
a) Enter the above transactions into a petty cash book and replenish the imprest on 3
rd
August 2017. (16 marks)
b) Show the journal entries of the petty cash book (4 marks)
Question four (25 marks)
The trial balance below is extracted from the books of DUBILA PLC as at 31/12/2016.
DR(000FCFA) CR(000FCFA)
Capital 1/1/2016 12,000
Freehold premises 4,000
Motor vehicles 3,000
Stock at 1/1/2016 9,000
Purchases 14,750
Sales 30,258
Sales returns 370
Wages 2,634
Salaries 900
Rates 230
Office expenses 1,100
Sundry debtors 3,600
Sundry creditors 2,680
Cash at bank 4,270
Cash in hand 456
Bad debts 156
Discount 70 164
Loan (long term) 3,000
Drawings 1,060
Fixtures and fitting 1,700
Carriage inwards 350
Carriage outwards 456
48,102 48,102
1) The stock at 31/12/2016 was valued at 10,500,000F
2) The following expenses were accrued:
a) wages 70,000F
b) office expenses 30,000F
3) Rates are prepaid to the extent of 50,000F
4) Depreciation to be charged on premises at 5% and on vehicle at 20%
5) Fixtures and fittings are to be revalued at 1,400,000F
6) Provision should be made for doubtful debts at 5% of sundry debtors
Required;
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a) Prepare a statement of income for the year ended 31/12/2016 (15 marks)
b) Prepare the statement of financial position as at 32/12/2016 (10 marks)
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