Saturday, October 20, 2018

TUTORIAL QUESTIONS ON PRINCIPLES OF ACCOUNTING II


1.  The following balances were extracted from the books of Aiyegbaogbon Enterprises on
      31st December, 2017.
                                                                                    N
Sales ledger, debit balance 1/1/2017                           98,260
Sales ledger, credit balance 1/1/2017                            2,370
Bought ledger, credit balance 1/1/2017                      72,190
Bought ledger, debit balance 1/1/2017                         4,210
Credit purchase                                                         513,620
Credit sales                                                               781,540
Accounts settled by contra                                            6,220
Bills dishonoured                                                           7,500
Bills debts written off                                                    5,260
Bills of exchange drawn on customers                        34,730
Returns Inward                                                              7,450
Returns Outwards                                                          8,920
Cash received from debtors                                       689,230
Cash paid to suppliers                                                495,140
Discount Received                                                       19,320
Discount Allowed                                                       24,750
Cash refunded to customers                                          1,270
Sales ledger, credit balance 31/12/2017                         2,010
Bought ledger, debit balance 31/12/2017                      3,340
You are required to prepare:
(a)    Sales Ledger Control Account
(b)   Purchases Ledger Control Account

2. Peter and Paul formed a partnership on 1st January, 2016. The partnership agreement contains the following:
i. The partners fixed capital are Peter N30,000  and  Paul  N24,000.
ii. Paul to receive a salary of N1,800 per year.
iii. Interest on capital to be calculated at 5% per annum.
iv. Interest is to be charged on drawing at the rate of 2%.
v.  Peter and Paul to share profit in ratio 2:1 respectively.
During the year to 31st December 2016, drawings were Peter N2,250 , Paul N1,750 and the net profit was N13,500. The partners decided to maintain fixed capital account.
You are required to show:
(a)     The Profit and Loss Appropriation Account for the year ended 31st December 2016.
(b)    The partners Current Account
(c)     Balance Sheet ( Extract ) as at 31st December 2016

3.  On 1st April 2017, Banuso purchased a business for N5,770 and  paid for it the same day. The assets and liabilities of the business on that day were as follows with the one on 31st March 2018.
                                                            1st April, 2017                        31st March, 2018
                                                                        N                                             N
Freehold Premises                                      3,000                                        3,000
Equipment                                                     300                                           450
Shop Fittings                                                 900                                        1,100
Stock-In-Trade                                           1,400                                        1,600
Debtors                                                         320                                           640
Creditors                                                       150                                            90
Cash at Bank                                                   -                                              390
On 1st April, 2017, Banuso opened a business account into which he paid N350. During the year his drawings were:
Cash                N1,100
Goods             N140
He also brought in additional cash capital of N700.
You are required to prepare a statement showing the profit or loss of the business for the year ended 31st March 2018 after taking into consideration the following:
(i)                 Depreciation of: Shop Fittings      N100   and  Equipment           N30
(ii)               N80 was written off as bad debts.

4. (a) The following list of balances was extracted from the records of Motiriri Textile Mills on 31st December, 2017.
                                                                                        N
Stock of raw cotton: 1st January 2017                       22,100
Stock of raw cotton: 31st December 2017                 23,400
Purchase of raw cotton                                             234,500
Carriage on raw cotton brought                                  67,900
Direct wages                                                             111,300
Factory Expenses:
Depreciation on plant and machinery                         45,300
Salaries                                                                        71,200
Power and heat                                                           66,100
Insurance and maintenance                                         17,500
Required:
Prepare manufacturing account for the year ended 31st December, 2017.
(b) Write short note on the following:
 i. Prime Cost              ii. Direct Labour Cost          iii.  Cost of Raw Material Consumed
iv. Production Overhead Expenses                 v. Work-In-Progress

5. (a) Differentiate between the following terms:
     i. Ordinary Shares and Preference Shares.
    ii. Authorised Share Capital and Issued Share Capital
   iii. Called Share Capital and  Paid Up Capital
    (b)  Fesojaiye Nigeria Limited issued 200,000 ordinary shares of N1.00 each atN1.20 per
           share payable as follows:
i.                    25k per share on application.
ii.                  40k per share on allotment (including the premium)
iii.                35k per share on first call
iv.                20k per share on second and final call
           Required: Show the ledger accounts to record the above transactions.

6. (a)  List six types of non-profit oriented organisation.
    (b) Differentiate between non-profit oriented organisation and profit oriented organisation.
   (c ) List three accounting records and financial statements of social clubs.


7. (a)  List six types of non-profit oriented organisation.
    (b) Differentiate between non-profit oriented organisation and profit oriented organisation.
   (c ) List three accounting records and financial statements of social clubs.

8. (a)  Define control Account and list five reasons for control accounts.
     (b)  Mention five each items to be found in sales ledger control account and purchases
          ledger control account.
    (c ) On January 1, 2017 the sales ledger balance of Foyegbe was N2,400 debit while the
          bought ledger balance was N970 credit.
            The following transactions took place in the month of January 2017.
                                                                                                    N
            Credit sales                                                                 35,180
            Bad debt                                                                          845
            Dishonoured cheque                                                     1,250
            Credit purchases                                                         18,060
            Returns inwards                                                            1,570
            Bills receivable                                                              4,500
            Cash received from debtors                                        15,600
            Cash paid to creditors                                                 11,400
            Discount allowed                                                             450
            Discount received                                                            945
            Cheques from debtors                                                   7,500
            Bills payable                                                                  2,150
            Debit balance in bought ledger transferred
to sales ledger                                                                  260
Discounts allowed but subsequently disallowed             150
Discounts received but subsequently withdrawn            145
Prepare:
(i)                 Total Debtors Account
(ii)               Total Creditors Account



For more questions and enquiries call Patriot Odunaro B.J  on 08038454008
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