Principles of Accounting (ACCC2101)
Higher Institute of Commerce and Management (HICM)
Semester: First Semester
Level: 200
Year: 2014
PRINCIPLES OF ACCOUNTING TUTORIALS
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT (HICM)
NATURE OF COURSE: GENERAL COURSE
DAY: THURSDAY AT 12’oclock to 2’oclock
VENUE: WE WILL LOOK FOR AN EMPTY CLASS
FACILITATOR: CIIINEHA K. EMMANUEL
FEE FOR PARTICIPATION: 100FCFA
1. EDORADO Plc started a small trading business in the near the University Bamenda on the 1
st
of October
2001 with a capital of 20,000 FCFA. During the month of October, the following transactions took place;
2
nd
Bought goods on credit form XYZ worth 14,000 FCFA
5
th
Paid the of his office rent at 6,000 FCFA
5
th
Sold goods for 29,000 FCFA and payment was done by cash
6
th
Deposited 13,000 FCFA into his bank account for his personal use
6
th
Bought goods worth 29,000 FCFA on credit from ABC
6
th
Sold goods on credit to EMMANU 44,000 FCFA
7
th
Drew 4,000 FCFA from his cash account for his personal use
8
th
Received from EMMANU 34,900 FCFA being part payment of goods sold on credit
10
th
Cash sales 40,000 FCFA
11
th
Paid advance wages in cash 19,000 FCFA
12
th
Bought goods worth 54,000 FCFA on credit from TOM
13
th
paid XYZ a supplier for his account 12,000 FCFA
15
th
Bought goods for sale by cash 20,000 FCFA
20
th
Cash sales 59,000 FCFA
21
st
paid TOM 29,000 FCFA
22
nd
paid for office expenses 26,000 FCFA
23
rd
Sold goods on credit to JERRY 31,000 FCFA
23
rd
Sold goods on credit to COFFI 28,500 FCFA
24
th
paid ABC 29,000 FCFA
25
th
Cash sales 49,000 FCFA
26
th
Received from COOFI 26,500 FCFA
28
th
JERRY paid his account for 24,000 FCFA
30
lh
Cash sales 19,000 FCFA
30
th
paid balances of wages 19,000 FCFA cash
31
sl
Cash purchases 16,000 FCFA
Required:
a)
Draw the relevant accounts and ledgers
b)
Extract the trial balance
c)
Draw the trading profit and loss account
d)
Present the balance sheet
QUESTION 2 (20 marks)
On the 1/01/2014, the business account balance of BREAKSLOW Plc amounted to FCFA 6,000,000.
Meanwhile the cash account as at this date stood at FCFA 2,000,000. During the month of January 2014, the
following transactions were carried out:
3/01 Settlement of motor vehicle expenses by cheque FCFA 1,000,000
4/01 Sales of goods by cash FCFA 3,000,000
5/01 Salaries and wages paid by cash FCFA 2,000,000
9/01 Payment by cheque made by credit customers net of discount as follows
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Receipt Discount
Mambo FCFA 2,000,000 100,000
Nkwenti FCFA 4,000,000 200,000
Achiri FCFA 3,000,000 150,000
13/01 Settlement of telephone bill by cheque FCFA 3,000,000
16/01 Sales by cash FCFA 15,000,000
17/01 Deposited FCFA 12,000,000 in the bank account from cash sales
21/01 Paid suppliers, net of discount by cheque as follows;
Receipt Discount
-Ade FCFA 2,000,000 100,000
-Nji FCFA 4,000,000 300,000
-Ngwa FCFA 3,000,000 200,000
23/01 Drew FCFA 2,000,000 from bank for office use
26/01 Purchases by cash FCFA 1,500,000
28/01 Drew FCFA 500,000 cash for personal use.
Work Required: Using the information above, present the three column cashbook.
GOOD LUCK!!!
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