Friday, July 26, 2019

LECTURE NOTES AND TUTORIAL QUESTIONS ON ACC 111-PRINCIPLES OF ACCOUNTS 1FOR FULL TIME AS WELL AS PART TIME

     FRIDAY 26TH JULY, 2019 LECTURE ON ACC 111-PRINCIPLES OF ACCOUNTS 1

LECTURE NOTE:
CONSULT YOUR SCHOOL NOTE.

                                            PATRIOT ODUNARO B.J (08038454008)

TUTORIAL QUESTIONS

1. What do you understand by source document? State ten source documents known to you.
2. List ten users of financial statement information.
3. Without Book-Keeping there wouldn`t be Accounting. Discuss
4. List five subsidiary books as well as ten users of financial statement information.
5. Define a Journal and state its components.
6. What are the uses of Journal Proper? List advantages of the Journal.
7. State what the Accountant will do if the error still cannot be located in the trial balance.
8. Classify the underlisted ledger accounts into capital and recurrent.
i.  Depreciation Account                     vi. Interest Paid Account
ii. Salaries and Wages Account          vii. Discount Received
iii. Furniture and Fittings Account     viii. Patent and Trade Marks Account
iv. Rent of Warehouse Account         ix. Goodwill Account
v. Office Building Account                x. Purchase Account
9. Write short note on the following:
(a) Periodicity      (b) Materiality     (c) Matching Concept    (d) Going Concern Concept
(e) Entity Concept
10. Sogbae Nigeria Limited provides the following information relating to its accounts for three years as shown in the table below:
Year
Capital
Profit
Returns on Capital

N
N
%
2018
750,000

45
2017
450,000
90,000

2016
500,000

35
Required:
(i) Calculate profits for year 2016 and 2018.
(ii) Calculate returns on capital for year 2017.
(iii) Calculate percentage increase in profit between year 2017 and 2018.
(iv) Calculate percentage decrease in profit between year 2016 and 2017.
(v)  Calculate increase in capital between year 2017 and 2018.
(vi) Calculate decrease in capital between year 2016 and 2017.
Hints: show all formular and workings
11. What do you understand by a Trial Balance?
12. Ajimatanraeje Nigeria Limited is maintaining a petty cash book with the following analysis  column: postage, transport, general expenses, advertisement and fuel.
The cashier is given a cash float of N50,000, reimbursement being made to cashier at the end of each week.
The following transactions took place:
July 16, 2018  Postage stamps purchased N3,500.
   July 16, 2018  Fare on delivery parcel  N2,500.
   July 17, 2018  Cost of registration letter  N9,500.
   July 18, 2018  Petrol for van  N7,500.
   July 19, 2018  Advertisement on local Newspaper  N10,000.
   July 19, 2018  Paid creditor  N10,000.
   July 20, 2018  Paid for tea and milk for office staff  N5,500.
   July 23, 2018  Petrol and oil for van  N7,500.
   July 23, 2018  Postage on parcel  N2,500.
   July 24, 2018  Traveller`s order book bought  N4,000.
   July 25, 2018  Paid creditor  N10,000.
   July 26, 2018  Transport fare to Ikoyi N5,000.
   July 26, 2018  Paid officer cleaners  N6,000.
   July 27, 2018  Cash count N15,000.
   From the knowledge acquired through the study of petty cash book, you are required
   to :
        (a)    Prepare petty cash book from the above information. 
        (b)   How much is the reimbursement for:
    i.       Third week of July 2018.                                          
   ii.       Four week of July 2018.                                           
 HINTS:
             i. Third week of July 2018 is from July 16, 2018 to July 22, 2018.
ii. Fourth week of July 2018 is from July 23, 2018 to July 29, 2018
13. Motiriri started a photographic business under the business name Motiriri Special Photos in
August, 2018. The following transactions relate to the first month of operation.
2018:
August 1         Paid N200,000 into bank.
August 5         Withdrew cash N90,000 from bank.
August 7         Bought two brand new cameras for N30,000 cash.
August 9         Paid cash for supplies N45,000
August 11       Purchased office equipment with cheque N25,000.
August            13       Received cash for work done N56,000.
August 15       Bought supplies with cash N10,000
August 18       Paid cash for repair of equipment N15,000.
August 21       Withdrew cash for personal use N12,000.
August 23       Paid telephone bills for the month N6,600 by cheque.
August 25       Delivered 100 pieces of pictures at N200 on credit to customers.
August 27       Received N18,000 cash from customers.
August 28       Bought supplies with cash N5,000.
You are required to prepare the two-column cash book for Motiriri for the month of August, 2018.
14. (a) The following information has been given to you about factory furniture and fittings of Ajimaronu Nigeria Limited.
Cost                             N5 million
Scrap value                  N250,000
Useful life                   5years
You are required to calculate the annual depreciation charges for each year using:                     
(a) Reducing Balance Method
(b)  Sum of the year Digit Method
15. The following information has been given to you about factory plant and machinery of
Ajikawe Nigeria Limited.
Cost                             N25 million
Scrap value                  N1,250,000
Useful life                   5years
You are required to calculate the annual depreciation charges for each year using:                     
(a) Reducing Balance Method
(b)  Sum of the year Digit Method
16. Assignment Won Wa Die Limited provides the following information as at 31st December, 2018.

N
Purchases
    2,763,000.00
Revenue
  10,863,000.00
Drawing
    1,057,500.00
Return Inwards
       547,500.00
Return Outwards
       465,000.00
Discount Allowed
       765,000.00
Discount Received
       630,000.00
Trade Receivables
    3,375,000.00
Trade Payables
    4,282,500.00
Inventory
    2,572,500.00
Land
       345,000.00
Motor at cost
       900,000.00
Furniture at cost
       187,500.00
Accumulated depreciation on motor
       337,500.00
Accumulated depreciation on furniture
        75,000.00
Cash at bank
       375,000.00
Cash in hand
       142,500.00
Salaries
    3,045,000.00
Carriage Inwards
    1,665,000.00
Carriage Outwards
       772,500.00
Printing and Stationery
       270,000.00
Electricity and water
    1,110,000.00
Insurance
       510,000.00
General Expenses
    2,610,000.00
Provision for bade debt
        15,000.00
Bad debt already written off
        30,000.00
Capital
    5,250,000.00
Rent Received
       285,000.00
Commission Received
       840,000.00
17. Fesojaiye Nigeria Limited provides the following informations and you are required to prepare a trial balance as at 31st December, 2018.
                                                                                 N
Purchases                                                       921,000.00
Revenue                                                      3,621,000.00
Drawing                                                        352,500.00
Return Inwards                                              182,500.00
Return Outwards                                          155,000.00
Discount Allowed                                         255,000.00
Discount Received                                         210,000.00
Trade Receivables                                       1,125,000.00
Trade Payables                                            1,427,500.00
Inventory                                                       857,500.00
Land                                                              115,000.00
Motor at cost                                                 300,000.00
Furniture at cost                                              62,500.00
Accumulated depreciation on motor            112,500.00
Accumulated depreciation on furniture          25,000.00
Cash at bank                                                 125,000.00
Cash in hand                                                   47,500.00
Salaries                                                       1,015,000.00
Carriage Inwards                                          555,000.00
Carriage Outwards                                        257,500.00
Printing and Stationery                                   90,000.00
Electricity and water                                     370,000.00
Insurance                                                       170,000.00
General Expenses                                          870,000.00
Provision for bade debt                                    5,000.00
Bad debt already written off                          10,000.00
Capital                                                        1,750,000.00
Rent Received                                                95,000.00
Commission Received                                  280,000.00
 

Most Popular Post