Principles of Accounting (ACCM2101)

Faculty of Economics and Management Science (FEMS)

Semester: First Semester

Level: 200

Year: 2017

Answers (200 )
THE UNIVERSITY OF BAMENDA/UNIVERSITE DE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES DEPARTMENT OF ACCOUNTING
First Semester Examination - 2016/2017 Academic Year Year One
Course code and Title: ACCT 201 (Principles of Accounting) Credit Value: 5 Course Status: C
Course Instructors: Dr. CMENGUELE Rene Guy / Mr. FAI Edward BERINYUY
Venue: CCAST Halls Date: 14/04/2017 Time: 8:00 AM - 11:00 AM
Instructions: Answer all questions
Question 1
(10
marks)
Briefly explain the following concepts:
a) Matching concept
b) Accrual concept
c) Prudence concept
d) Periodicity concept
e) Duality concept
f)
Question 2 (15 marks)
MADUM ltd carried out the following transactions during the month of December 2016.
Date
Transactions
000 FCFA
Dec. 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: Recent the above transactions in a classical Journal.
Question 3 (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 imprest
of 100,000 FCFA which Bomka replenishes on Monday following the period of expenditure. The
following information is available for the month of July 2016:
FCFA
July
1
Imprest established by bank cheque
100,000
2
Petrol
4,000
3
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
20
Office carpet shampoo
1,000
21
Petrol
7,000
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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 2016. (16 marks)
b) Show the journal entries of the petty cash book. (4 marks)
Question 4
(25 marks)
The trial balance below is extracted from the books of DUBILA PLC as at 31/12/2016.
DR
CR
FCFA (000)
FCFA (000)
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
Discounts
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 10,500,000 FCFA.
2) The following expenses were accrued:
a) Wages 70,000 FCFA,
b) Office expenses 30,000 FCFA.
3) Rate are prepaid to the extent of 50,000 FCFA.
4) Depreciation to be charged on premises at 5% and on vehicles at 20%.
5) Fixtures and fittings are to be revalued at 1,400,000 FCFA.
6) Provision should be made for doubtful debts at 5% of sundry debtors.
Required:
a) Prepare a statement of Income for the year ended 31/12/2016. (15 marks)
b) Prepare the statement of financial position as at 31/12/2016. (10 marks)
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