Principles of Accounting (ACCC2101)

Higher Institute of Commerce and Management (HICM)

Semester: Resit

Level: 200

Year: 2014

Answers (200 )
THE UNIVERSITY OF B AMEND A
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT (HICM)
PRINCIPLES OFACCOUNTING ASSIGNMENT
LEVEL 100, FIRST SEMESTER 2013/2014 RESH’ EXAMINATION
COURSE MASTER: ARMSTRONG-PEACE N F
INSTRUCTIONS: Answer all questions
QUESTION 1 (50 marks)
Mr. Fon started a small trading business in the Bamenda main market on the 1
st
of March 2013 with a capital of
FCFA 16,000. During the month of march, 2013, the following transactions took place
2
nd
Bought goods on credit form Muna worth FCFA 10,000
5
th
Paid rent FCFA 2,000
5
th
Sold goods for FCFA 25,000 cash
6
th
Deposited FCFA 9,000 into bank account
6
th
Bought goods worth FCFA 25,000 on credit from Kemeni
6
th
Sold goods on credit to Adamu FCFA 40,000
7
th
Drew FCFA 1,000 from the cash account for personal use
8
th
Received from Adamu FCFA 30,900 being part payment of goods sold on credit
10
th
Cash sales FCFA 32,000
11
th
Paid advance wages in cash FCFA 15,000
12
th
Bought goods worth FCFA 50,000 on credit from Rika Ltd
13
th
paid Muna a supplier for his account FCFA 8,000
15
th
Bought goods for sale by cash FCFA 16,000
20
th
cash sales FCFA 55,000
21
st
paid Kika Ltd FCFA 25,000
22
nd
paid for office expenses FCFA 22,000
23
rd
Sold goods on credit to Siben Ltd FCFA 27,000 and Ojong-Ndip FCFA 22,500
24
th
paid kemeni FCFA 20,000
25
th
Cash sales FCFA 45,000
26
th
Received from Ojong Ndip FCFA 22,500
28
th
Siben Ltd paid his account for FCFA 20,000
30
th
Cash sales FCFA 15,000
30
th
paid balances of wages FCFA 15,000 cash
31
st
Cash purchases FCFA 12,000
Work Required
1. Draw the relevant accounts and ledgers (20 marks)
2. Extract the trial balance (10 marks)
3. Draw the trading profit and loss account (10 marks)
4. Present the balance sheet (10 marks)
Electricity and water 1,500
Phone 300
carriage inwards
200
carriage outwards 300
Drawings -3,000
Capital
14,300
TOTAL 50,800 50,800
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Supplementary information
1. Stock on the 31/12/2013 amounted to FCFA 3,000,000.
2. Provision for bad & doubtful debts is set at 5% of current debtors.
3. Unpaid motor vehicle expenses amount to FCFA 3,000,000.
4. A quarter of telephone bills paid concerns the year 2014.
5. Unpaid water and electricity bills amount to FCFA 100,000.
6. Depreciation is provided on motor vehicles and fixtures at 20% and 10% respectively on cost.
7. Prepaid salary and rent were FCFA 200,000 and FCFA 100,000 respectively.
The Board of Directors of HomeAgain in their decision no 054/13 requested your services experienced
accounting consultant for a handsome reward of FCFA 1,350,000 after tax, to carry out the following
transactions
1. Draw the relevant accounts (10 marks)
2. Prepare the trading profit and loss account for year ended 31/12/2013 (13 marks)
3. Prepare the balance sheet as at the 31/12/2013 (12 marks)
Petty cash is managed through the imprest system in SABGA Int. with an imprest of FCFA 200,000 per week.
The following were the petty cash payments for the week ending 21
st
February 2014.
Work Required:
1. Draw the petty cash book for the week ended 21
st
February 2014. (10 Marks)
2. Record the petty, cash operations from the point of withdrawal and also establish the petty cash fund for week
ending 21
st
February 2014. (5 marks) marks
Date Voucher No Description Amount
17/2/14 103
Newspapers
10,000
17/2/14 104 Courier charge 15,000
17/2/14 105
Tea, milk and coffee for
office
25,000
18/2/14 106 Mobile phone scratch cards 20,000
18/2/14 107 Printing 15,000
L9/2/14 108 Wages for casual cleaners 15,000
19/2/14 ib9 Motor vehicle fuel 45,000
10/2/14 110 Office stationery 13,000
20/2/14 111 Taxi fare 10,000
21/2/14 112 Cleaning materials 13,000
21/2/14 113 Managers lunch 15,000
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