Principles of Accounting (ACCM2101)

Faculty of Economics and Management Science (FEMS)

Semester: Resit

Level: 200

Year: 2019

Answers (200 )
THE UNIVERSITY OF BAMENDA/UNIVERSITE DE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING Level: 200 (Year: 1)
Course code and title:
ACCM 2101 Principles of Accounting
Course Status: C Credit Value: 5
Course Lecturers: Dr. Omenguele /
Fai
Venue: TBA
Date: 31 /07/2019 Time: 8:00-10:00
Re-sit Examination 2018/2019 Academic year
Instructions: Attempt all questions. Show clear workings where necessary
Question 1 (10 marks)
Briefly explain the following concepts: Accrual Duality, Prudence, Matching and Historical cost
Question 2 (15 marks)
Kingsway Ltd carried out the following transactions during the month of December 2015.
Date
Transaction 000 FCFA
Dec. 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 500,000 frs were sold
to
a customer in cash 650,000
25
Bought goods on credit 100,000
28
Customer paid his account by cheque 40.000
29
Sold goods on credit 150,000
30
Received a cheque from customer in lull settlement of the
transaction dated December 10
th
.
350,000
Required:
Record the above transactions in a classical Journal.
Question 3 (20 marks)
Draw up a three-column cashbook using the information below and balance the account for August;
1 Balances brought forward: Cash 230,000 FCFA; Bank 4.756.000 FCFA
2 Tire following paid their accounts by cheque in each case deducting 5% cash discount:
Carine W. 280.000 FCFA; Peter P. l80.000 FCFA
3 Sales paid direct into bank 134.000 FCFA.
5 Paid rent by cash 88.000 FCFA.
6 We paid the following accounts by cheque in each case deducting 2% cash discount: Julian 400.000 FCFA:
Hanah 640.000 FCFA
8 Withdrew cash from the bank for business use 250.000 FCFA.
10 Cash sales 206.000 FCFA.
12 Malong paid us Iris account of 89.000 FCFA by cheque less 2000 FCFA cash discount.
14 Paid wages by cash 250.000 FCFA.
20 Bought fixtures by cheque 8.000.000 FCFA.
29 Received 169.000 FCFA cheque from Angono.
50 Bought stationery paying by cash 60.000 FCFA.
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QUESTION 4 (25 marks)
The trial balance below was extracted from the books of MARI AH Enterprise as on 31
sl
December 2013.
DR
000FCFA
CR
000FCFA
7,000
Premises
1.444
Machinery
5,880
Provision for depreciation on
machinery
358
Stock in trade 31
sl
December 2009
825
Purchases
14,500
Sales
25,000
Carriage inwards
305
Carriage outwards
215
Lighting expenses
411
Salaries
2,105
Wages
1.305
Rents and rates
800 '
Bad debts
560
Discount allowed and received
306
1.502
Drawings
800
Debtors
1,899
Sales returns
155
Purchases returns
906
Cash at bank
3,050
Cash in hand
2,000
Provision for bad debts
35
Creditors
1.250
Bank overdraft
509
36,560
36,560
Additional information:
a) Salaries paid in advance amounted to 56.000 Frs.
b) Payment tor lighting expenses by cheque for 682.000 Frs. had been omitted in the books,
c) Provision for bad debts is to be increased to 55.000 Frs.
d) Rents and rates paid was only for 10 months of the year.
e) Stock at 31
st
December 2010 was 677,000 Frs.
f) Depreciation is to be charged on premises and machinery at 5% and 20% respectively.
Required:
Prepare the statement of income for the year ended 31
st
December 2010 and the statement of financial position as at
that date (Vertical format only).
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