Principles of Accounting (ACCT2101)
Faculty of Economics and Management Science (FEMS)
Semester: First Semester
Level: 200
Year: 2015
Instruction: answer all questions
Duration: 3 hours
QUESTION ONE (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 cash
c)
To increase utility expense
d)
To increase fees earned
e)
To decrease unearned revenue
f)
To decrease prepaid insurance
g)
To increase notes payable
h)
To decrease accounts receivable
i)
To increase common stock
j)
To increase store equipment
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
1st Semester
Course : rinciples of Accounting
Credit Value:
Course Lecturers:
Time:
Course Code: ACC201
Venue:
Question two (20marks)
The following is a summary of the petty cash transactions for S Dome for August
2015.
August 1 received from main cashier 100,000FCFA as petty cash float for the month.
Aug 2 rail fares 17,000
Aug 4 petrol 8,000
Aug 8 stationary 4,000
Aug 10 cleaning 11,000
Aug 18 petrol 16,000
Aug 21 cleaning 10,000
Aug 22 bus fares 4,000
Aug 25 cleaning 2,000
Aug 28 stationary 5,000
Aug 30 petrol 6,000
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Note: all amounts are in FCFA
a)
Rule up a petty cash bool with analysis columns for expenditure on cleaning,
travelling, expenses, petrol and stationary
b)
Enter the months’ transaction
c)
Enter the receipt of the amount necessary to restore the impress and carry
down the balance for the commencement of the following month
d)
Replenish the petty cash float for the next month on 1
st
September 2015.
Question three (15 marks)
Among other items, the trial balance of Daniella company, as at December 31, 2025,
include the following account balances:
Debits
Prepaid insurance 10,000,000FCFA
Prepaid rent 14,400,000FCFA
Supplies on hand 2,800,000FCFA
Salaries 4,500,000FCFA
Examination of the records shows that the adjustments be made for the
following items:
a)
Of the prepaid insurance in the trial balance, 4,000,000FCFA is for
coverage during the months after December 31, 2015
b)
The balance in the prepaid rent account is for a 12-month period that
started October 1, 2015
c)
300,000FCFA of interest has been earned but not received
d)
Supplies used during the year amounted to 1,800,000FCFA
e)
The salaries shown on the trial balance is for nine months beginning
January 2015
Required: prepare the annual year-end adjusting entries as at December 31, 2015
Question four (25 marks)
The following trial balance was extracted from the books of R Bongli at the close
of business on December 31, 2015
000FCFA 000FCFA
opening inventory
20,672
sales 449,000
312,000
general expenses
8,882
salaries
54,535
administration cost
13,123
insurance
4,535
rent
9,789
545
62,000
equipment 18,000
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9,500
provision for depreciation:
equipment 5,200
280
trade receivables 10,200
trade payables 7,800
8,500
capital 72,000
drawings 21,000
543,780 543,780
Additional information:
-inventory at 31 December 2015 19,122,000FCFA
-salaries accrued at 31 December 2015 5,435,000FCFA
-administrative costs owing at 31 December 2015 312,000FCFA
-insurance paid in advance at 31 December 2015 765,000FCFA
-the provision for doubtful debts is to be maintained at 5% of trade receivables
-depreciation is to be provided as follows: planta; 20% on cost; equipment: 20% reducing
balance.
Required
Prepare a statement of income for the year ending 31 December 2015 and the statement of
financial position as at that date.
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