Principles of Accounting (ACCC2101)

Higher Institute of Commerce and Management (HICM)

Semester: First Semester

Level: 200

Year: 2019

Answers (200 )
COURSE: PRINCIPLES OF ACCOUNTING
LEVEL 200, FIRST SEMESTER 2018/2019 EXAMINATION
COURSE MASTER: ARMSTRONG-PEACE N F
TIME ALLOWED: 2 HOURS
GLolocal Pic presents the total balances for the year ended 31/12/2018 from the sale of basic
commodities.
ELEMENTS
DEBIT FCFA (000)
CREDIT FCFA (000)
Motor vehicles
6,000
Fixtures
4,000
Stock (1
st
2,000
Sales
30,000
Purchases
14,000
Rent
2,000
Salaries and wages
2,000
Electricity
1,000
Telephone
800
Motor vehicle expenses
1,000
Discounts
,1,200
1,000
Returns
2,000
1,000
Debtors
8,000
Creditors
6,000
Cash
4,000
Bad debts
1,000
Provision for bad & doubtful debts
1,000
Drawings,
2,000
Capital
12,000
TOTALS
51,000
51,000
Additional Information
1.
Rent outstanding at the end of the year amounted to FCFA 400,000.
2.
Salaries and wages paid in advance amount to FCFA 200,000.
3.
Accrued electricity is FCFA 100,000.
4.
A prepaid telephone bill is FCFA
r
260,000.
5.
Stock as at 31/12/2018 stood at FCFA 6,000,000.
6.
The provision for bad and doubtful debts is to be set at 10% of debtors.
7.
Depreciation is provided on motor vehicles and fixtures at 10 and 20% respectively on cost.
Work Required:
1.
Prepare the trading, profit and loss account for GloLocal Pic for the year ended 31/12/2018.
2.
Prepare the balance sheet as at 31/12/2018
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