Principles of Accounting (ACCC2101)

Higher Institute of Commerce and Management (HICM)

Semester: First Semester

Level: 200

Year: 2015

Answers (200 )
COURSE: PRINCIPLES OF ACCOUNTING
LEVEL 100, FIRST SEMESTER 2014/2015 EXAMINATION
COURSE MASTER: ARMSTRONG-PEACE N F
TIME ALLOWED: 3 HOURS
Instructions to candidates: Answer all questions
QUESTION 1 (30 marks)
The trial balance of RIGHTONTIME Int Ltd for the year ended 31/12/2014 is presented as follows
ELEMENTS
DR.
CR.
Motor vehicles
40,000
Furniture and fittings
30,000
Stock (1/1/2014)
20,000
Sales
300,000.
Purchases
200,000
Returns
20,000
10,000
Discounts
30,000
10,000
Debtors /Creditors
80,000
40,000
Bad debts
10,000
Provision forbad and doubtful debts
5,000
Motor vehicle expenses
10,000
Rent
5,000
Salaries and wages
10,000
Electricity and water
15,000
Telephone
3,000
Carriage inwards
2,000
Carriage outwards
3,000
Drawings
30,000
Capital
143,000
Total
508,000
508,000
Additional information
1. Stock on the 31/12/2014 amount to 30,000,000
2. Provision for bad and doubtful debts is set at 5% of current debtors
3. Unpaid motor vehicle expenses amount to 3,000,000, rent paid in advance, amounts to
1,000,000 meanwhile prepaid salaries and wages is 2,000,000.
4. % of the telephone bills paid, relate to the year 2015.
5. Unpaid electricity and water bill amounts to 1,000,000.
6. Depreciation is provided on motor vehicles and fixtures at 20% and 10% respectively on cost.
7. Prepaid salary and rent amounts to 2,000,000 and 1,000,000 respectively.
Work Required:
1.
Prepare the trading profit and loss account for year ended 31/12/2014. (20 marks)
2.
Prepare the balance sheet as at the 31/12/2014. (15 marks)
3.
Question 2 (15 marks)
As a trainee accountant for Wirkijung Ltd, you have been provided with two statements (cash book
bank column and a bank statement provided by the bank) for the month of January 2015. The BOD
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is contemplating whether to confirm you to the position of accountant. Nevertheless the decision to
confirm you or not will depend on your performance in the tasks below
Your duty is to check the transactions in the company’s cashbook,
check the entries on receipt of the bank statement,
Update the cashbook and make any amendments as necessary after which you will be
required to prepare a bank reconciliation statement at the end of the month.
Wirkijung Ltd cashbook bank column for the month of January 2015
Date
Inv. no
Details
Amount
Date
Inv. no
Details
Amount
1/01
BalB/f
50,000
,4/01
0030
Furniture
15,0007
5/01
0020
Alima
15,000/
.7/01
0031
Salaries
16,000u
10/01
0021
Atanga
13,00(V
12/01
0032
Khan
15,000
15/01
0022
Babila
16,000
16/01
0033
Keka
12,000
20/01
0023
Mambo
20,000
23/01
0034
Ngang
10,000
31/01
Bal c/f 46,000
Total
114,000
Total
114,000
Bank statement sent by BICEC as at the 31/12/2015
Date
Details
Debit
Credit
Balance
1/01
Balance
, 50,000
50,000
5/01
0030
15.000
35,000
8/01
0020
15,000
50,000
10/01
0031
16,000
34,000
12/01
Ledger fees
1,000
-
33,000
15/01
0021
13,000
46,000
18/01
Interest
3,000
49,000
20/01
Telecom
2,000
-
47,000
25/01
Communication
1,000
-
46,000
31/01
Balance
-
-
46,000
Work Required:
1. Adjust the cashbook balance as at the 31/01/2015 (7.5 marks)
2. Present the bank reconciliation statement (7.5 marks)
Question 3 (20 marks)
EXCLUSSIVEGRACE Int Cam. Ltd, manages its Petty cash through the imprest system with an imprest
of FCFA 200,000 per week. The following were the petty cash payments for die week ending 30* January
2015.
Date
Voucher No
Description
Amount
26/1/15
001
Newspapers
10,000
26/1/15
002
Courier charge
15,000
26/1/15
003
Tea, milk and coffee for office
25,000
27/1/15
004
Mobile phone scratch cards
20,000
27/1/15
005
Printing
15,000
28/1/15
006
Wages for casual cleaners
15,000
28/1/15
007
Motor vehicle fuel
45,000
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29/1/15
008
Office stationery
13,000
29/1/15
009
Taxi fare
10,000
30/1/15
010
Cleaning materials
13,000
30/1/15
011
Managers lunch 15,000
Work Required:
1. Draw the petty cash book for the week ended 30* January 2015 in the following categories;
travelling expenses, printing, postage/stationery, telephone and office expenses.
2. Record the petty cash operations from the point of withdrawal from bank and also establish the
petty cash fund for week ending 30* January 2015.
GOOD LUCK!!!
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