Principles of Accounting (ACCC2101)
Higher Institute of Commerce and Management (HICM)
Semester: First Semester
Level: 200
Year: 2014
THE UNIVERSITY OF BAMENDA
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT (HICM)
COURSE: PRINCIPLES OFACCOUNTING
LEVEL 100, FIRST SEMESTER'2013/2014 EXAMINATION
COURSE MASTER: ARMSTRONG-PEACE N F
TIME ALLOWED: 3 HOURS
Instructions to candidates: Answer all questions.
QUESTION I (20 marks)
On the first of February 2014, the balance of cash in the bank account of Brainstorm Pic amounted to FCFA
6,000,000 meanwhile cash at hand stood at FCFA 3,000,000. During the month, the following transactions were
carried out;
02/02 Motor expenses were paid by cheque amounting to FCFA 500,000.
03/02 received payment from credit customers made by cheque net of discount as follows.
Customer Receipt discount
Nkeh 500,000 50,000
Beri 1,000,000 100,000
04/02 Paid salaries and wages by cheque FCFA 2,500,000.
08/02 Cash sales FCFA 10,000,000 in the bank account from cash sales.
09/02 Deposited FCFA 10,000,000 in the bank account from cash sales
12/02 Drew FCFA3,000,000 cash for personal use.
16/02 Made the following payments to suppliers by cheque net of discount;
Suppliers Payment Discount
Ngwe 2,000,000 100,000
Tse 2,000,000 100,000
20/02 Paid telephone bills by cheque FCFA 500,000.
22/02 Drew FCFA 2,000,000 from bank for office use
26/02 Purchase of goods by dash FCFA 1,500,000
28/02 Took and insurance policy and paid by cheque FCFA,200,000
Required: Present the three column cashbook and balance the accounts on the 28
lh
of February 2014. (20 marks)
QUESTION 2(35 marks)
The trial balance for the year ended 31/12/2013 for HomeAgain Plc is presented as follows:
DETAILS
AMOUNTS IN (FCFA ‘000’)
DEBIT CREDIT
Motor vehicles 4,000
FixbtottS and fittings 3,000
Stock (1/1/2013) 2,000
Sales
30,000
Purchases 20,000
Returns 2,000
1,0'00
Discounts 3,000
1,000
Debtors / Creditors 8,000
4,000
Bad debts
1,000
Provision for bad and doubtful
debts
500
Motor vehicle expenses
Rent 500
Salaries and wages
1,000
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