LECTURE NOTE:
CONSULT YOUR SCHOOL NOTE.
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
