Principles of Accounting (ACCM2101)

Faculty of Economics and Management Science (FEMS)

Semester: First Semester

Level: 200

Year: 2018

Answers (200 )
FEMS / UBa PRINCIPLES OF ACCOUNTING YEAR ONE-2017/20IN
Required:
Present the adjusting entries and the adjusted trial balance as at 28
th
February 2016.
QUESTION 8
The following trial balance was extracted from the books of R Bongli at the close of business on 31
December 2016.
000 FCFA
000 FCFA
Opening inventory
20,672
Sales
449,000
Purchases
312,000
General expenses
8,881
Salaries
54,535
Administration costs
13,123
Insurance
4,535
Rent
9,789
Bad debts
545
Plant
62,000
Equipment
18,000
Provision for depreciation: Plant
9,500
Provision for depreciation:
5,200
Equipment
Provision for doubtful debts
280
Trade receivables
10,200
Trade payables
7,800
Bank
8,500
Capital
72,000
Drawings
21,000
543,780
543,780
Additional information:
Inventory at 31 December 2016 19,122,000 FCFA
Salaries accrued at 31 December 2016 5,435,000 FCFA
Administration costs owing at 31 December 2016 312,000 FCFA
Insurance paid in advance at 31 December 2016 765,000 FCFA
The provision for doubtful debts is to be maintained at 5% of trade receivables
Depreciation is to be provided as follows: Plant: 20% on cost; Equipment: 20% reducing balance.
Required:
Prepare a statement of income for the year ending 31 December 2016 and the statement of financial
position as at that date.
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FEMS / UBa PRINCIPLES OF ACCOUNTING YEAR ONE - 2017/2016
QUESTION 6
The following is a summary of the petty cash transactions for S Dome for August 2016.
2016
Aug 1 received from petty cashier 100,000 FCFA
as petty cash float
FCFA
Aug 2 Rail fares
17.000
Aug 4 Petrol
8.000
Aug 8 Stationery
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 Stationery
5.000
Aug 30 Petrol
6,000
(a) Rule up a petty cash book with analysis columns for expenditure on cleaning, travel expenses and
stationery.
(b) Enter the month's transactions.
(c) Enter the receipt of the amount necessary to restore the imprest 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 2016.
Question 7
The following trial balance was extracted from the books of R.DESPA at the close of business on :
February 2016.
DR (FCFA 000)
CR (FCFA 000)
Purchase and sales
92,800
157,165
Cash at bank
4,100
Cash in hand
324
Capital account 1
stl
March 2016 Drawings
17,100
11,400
Office furniture
2,900
Rent
3,400
Wages and salaries
31,400
Discounts
820
Debtors and creditors
12,316
5,405
Stock 1
st
March 2016
4,120
Provision for doubtful debt 1
st
march 2016
405
Delivery van
3,750
Van running cost
615
Bad debts written off
730
174.375
174.375
NOTES
a. Stock 28 February 2016 2,400,000 FCFA
b. Wages and salaries accrued at 28 February 2016 340,000 FCFA
c. Rent prepaid at 28 February 2016 230,000 FCFA
d. Van running cost owing at 28 February 2016 72,000 FCFA
e. Increase the provision for doubtful debts by 91,000 FCFA
f. Provide for depreciation as follows; Office furniture 380,000 FCFA; Delivery Van 1,250,000 FCFA
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