Academic year 2021/2022

Quantitative technique MGt

QUESTION 1 (20 marks)

FOSSI ETS is involve in the production and commercialization of Mushroom in the

City of Douala. For the year 2022 she kick start her activities in January with the
following activities
January 1: started the business with cash 4,000,000 FRS and a car worth 1,750,000
FRS
January 2: bought goods for cash at the cost of 1,130,000
January 8: paid wages of 13000 FRS and sundry expenses of 2000 FRS in cash
January 9: sold goods on credit to customer Aboubakar for 190,000 FRS
January 14: sold goods on credit to customer Susan for 240,000 FRS
January 18: Bought goods on credit from supplier Tabot for 85000 FRS
January 22: bought fixtures and fittings at cost of 350,000 FRS
January 25: paid wages 38,000 FRS
January 26: withdrew 80,000 FRS cash for personal use
January 31: Customer Aboubakar paid the full amount owing
January 31: Paid rent 500,000 FRS in cash
Work Required

1. Prepare the Classical Journal of FOSSI ETS

2. Draw up the relevant ledger accounts for the month
3. Extract a TWO,FOUR,SIX and Eight column Trial balance

Question 2 (20 marks)

Four students decide to create a company for the production of light food
items during the year 2021 with business name being La Pasta S.A and
headquarters in Douala.

The first transactions of the year 200X are the following:

1. The founders contribute 5 000 000 CFAF each. The sum is deposited in the
bank account opened in BICEC Bank.
2. Acquisition of a piece of land for 3 000 000 CFAF on credit.
 Academic year 2021/2022

3. A plan for the acquisition of an industrial building is approved for 8 500 000

CFAF.
4. A loan of 2 500 000 CFAF is contracted from BICEC Bank. The sum is
deposited in the bank.
5. The building is bought and paid by bank cheque: 8 500 000CFAF.
6. Payment by bank cheque of the price of the land.
7. Acquisition of minor machines: 4 500 000 CFAF on credit.
8. Purchase of 100 tons of raw materials, settlement by bank: 4 500 000 CFAF.
9. Transformation of the 100 tons of raw materials, manufacturing expenses
settled in bank: 3 000 000 CFAF.
10.Sale of all the finished products for 10 000 000 CFAF, payment in 30 days
end of month.
11.Payment by bank cheque for the minor machines.
12.Purchase of 110 tons of raw materials for 4 800 000 CFAF, payment in 60
days end of month.
13.Transformation of all the 110 tons, manufacturing expenses paid in Bank:
3 200 000 CFAF.
14.Settlement from customers by bank cheque: 10 000 000 CFAF.
15.Sale on credit of all the production of the month: 11 500 000 CFAF.

Required: Analyze each of the business transactions and present the balance
sheet of the business.