THEINSTITUTE OF FINANCE MANAGEMENT

FACULTY OF ACCOUNTING, BANKING & FINANCE

DEPARTMENT OF ACCOUNTING AND FINANCE

BACHELOR IN ACCOUNTANCY

AFU 07202 INTRODUCTION TO FINANCIAL ACCOUNTING

YEAR 1

STREAM F.

NO NAME REG NO
01 DEOGRATIUS MELKIORY MSOKA. IMC/BAC/1911970
CHEBABWINO`S STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 ST DECEMBER 2018.

SALES(Note 01) 1,525,400,000

Less COGS
COGAS
Opening stock 143,000,000
Add Purchases(Note02) 974,470,000
Less closing stock(Note (34,690,000) (1,082,780,000)
03)
GROSS PROFIT estimate 442,620,000
Interest received(Note 04) 200,000

TOTAL INCOME 442,820,000

Less EXPENCES
Part time salaries 89,400,000
Rent and Rates 129,000,000
LESS short term rents 8,000,000
Sundry expenses(Note05) 42,540,000
Depreciation(Note 06) 6,000,000 (339,920,000)
Loss on stock stolen 116,720,000 60,601,428.6
Net profit

Note 01.

DR. DEBTOR`S CONTROL ACOOUNT CR.

Balance b/d 12,100,000 Receipts from customers 1,404,900,000

Salaries 89,900,000
Sales 1,525,400,000 Drawings 29,500,000
Balance c/d 13,700,000
1,537,500,000 1,537,500,000

Note 02.

DR. CREDITORS CONTROL ACCOUNT CR.

Bank payment to creditors 989,170,000 Balance b/d 149,700,000

Balance c/d 135,000,000 Purchases 974,470,000

1,124,170,000 1,124,170,000
Total payment to creditors= 987,970,000 + 1200,000=989,170,000

Note 03.

Margin = Gross profit / Sales

Gross profit = Sales * Margin

= (1,406,500,000-50,000,000)*30%

Gross profit = 442,620,000

Gross profit= sales – cogs

Cogs = Sales – gross profit

Cogs = 1,525,400,000 – 442,620,000

=1,082,780,000

Cogs = Cogas – closing stock

Closing stock = Cogas –Cogs

= Opening stock + purchases – Cogs

= 143,000,000 + 974,470,000 – 1,082,780,000

Closing stock = 34,690,000

Note 04

Interest received

2%*20,000,000*6/12

=200,000

Note 05

Sundry expenses

Current year sundry expenses 42,800,000

Less 2017 accrued expenses (2,440,000)

Add 2018 accrued expenses 2,180,000

Actual sundry expenses 42,540,000

Note 06

Depreciation

80% = 24,000,000

100% =?

Actual motor van cost = 100*24,000,000/80 =30,000,000

Depreciation = 30,000,000-24,000,000=6,000,000.

CHEBABWINO`S BALANCE SHEET AS AT 31ST DECEMBER 2018.

ASSETS
Non-current assets
Motor van 18,000,000
Current assets
Inventory 15,000,000
Trade receivables 13,700,000
Cash at bank (Note 06) 97,980,000
Rental deposits 8,000,0000
Accrued interest 200,000 172,880,000

Capital (Note 07) 88,760,000

Less Drawings (29,500,000)
(70,000,000)
Add Injection 10,000,000
Add Net profit 36,440,000

Liabilities
Trade payables 135,000,000
Accrued sundry expenses 2,180,000
Total capital and liabilities 172,880,000

Note 06

BANK RECONCILLIATION STATEMENT.

Balance as per bank statement 99,180,000

Less unpresented cheques (1,200,000)

Balance as per updated cashbook 97,980,000

Note 07

Assets

Non-current assets

Motor van 24,000,000

Current assets

Inventory 143,000,000

Trade receivables 12,100,000

Cash at bank 61,800,000

Total assets 240,900,000

Liabilities

Accrued sundry expenses 2,440,000

Trade payables 149,700,000

Total liabilities 152,140,000

Opening capital = asset –liabilities

=240,900,000-152,140,000

Opening capital = 88,760,000.