REPUBLIC OF CAMEROON REPUBLIQUE DU CAMEROUN

. Peace-work-fatherland Paix – Travail – Patrie

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MINISTRY OF HIGHER EDUCATION MINISTERE DE L’ENSEIGNMENT SUPERIEUR

HIGHER TECHNICAL TEACHER TRAINING COLLEGE ECOLE NORMALE SUPERIEURE D’ENSEIGNEMENT
(HTTTC) BAMBILI TECHNIQUE (ENSET) BAMBILI

DEPARTMENT: ADMINISTRATIVE TECHNIQUES

OPTION: ACCOUNTANCY

LEVEL: 200

ASSIGNMENTS
PROFESSIONAL ACCOUNTING PRACTICE 1

QUESTION 8 ON REVIEW EXERCISES AND QUESTIONS ON THE FORMATION OF

COMPANIES

SUBMITTED BY:

LUKONG BOBONGHAH BLESSING

MATRICULE NO: 12TPO17

COURSE INSTRUCTOR
SUH CHARLES

YEAR OF PRESENTATION 2014

1
Question Number 8; Review exercises and questions on the formation of companies.

1. a) Determination of the value and number of shares in kind.

Goodwill…………………………………………………………..25000000

Land…………………………………………………………………..6000000

Buildings……………………………………………………………45000000

Office Materials………………………………………………..3500000

Transport Materials………………………………………….5500000

Stock of Goods………………………………………………….6600000

Customers………………………………………………………..3800000

Less Suppliers…………………………………………………………..95400000

Bill payable…………………………………………………………400000

Amount of contribution in kind………………………..80000000

 nominal value of shares = 10000frs

ii Number of shares in kind = 80000000 ÷ 10000 = 8000shares.

b) The value and number of shares in cash.

i) let amount cash contribution = X

Know that the first two quarters have been realized before 01/05/97

Therefore 55000000 = last two quarters

55000000 = 2quatres

X = 4quatres

≡ 2X = 55000000×4

2X = 220000000

X = 11000000 FRS

2
ii Number of shares = 110000000 ÷ 10000 = 11000frs

c. Amount of Capital

Social Capital = Contribution in kind + Contribution in cash

= 80000000 + 110000000

= 190000000 FRS

2. Journal entries of all information.

Preliminary Calculations

First Quarter

11000
Appeal × 10000 = 27500000
4

3
Anticipation 2800× × 10000 = 21000000
4

Amount received on the 1/2/96 = 48500000FRS

Formation Expenses

Notary Nana……………………………………….6400000

Registration duties 2%× 190000000 = 3800000

VAT 19.25% ×6400000 = 1232000

TOTAL 11423000 FRS

Capitalization = 6400000 + 3800000 = 10200000 FRS

10200000
Depreciation = = 3400000 FRS
3

2nd quarter

Appeal ………………………………………………27500000

Less anticipation ( 21000000

3 ) ……………………..7000000
Amount received on 1/2/97……………………………20500000 FRS

3rd quarter

3
 Appeal…………………………………………………………27500000

Less anticipation…………………………………………………..7000000

Default ( 6004 × 10000)…………………………..15000000

Amount received on the 1/2/98…………………………….19000000frs

Defaulting Expenses

Selling Expenses = 4560000× 2% =91200 FRS

From 1/2/98 to 10/05/98 = 99days

1500000× 99 ×10
Lateness interest = = 41250 FRS
36000

4th quarter

Appeal………………………………………..27500000

Less Anticipation…………………………………7000000

Amount received on the 1/2/2000……………….20500000frs

1/1/96
4611 Shareholders contribution in kind 80000000
4612 Shareholders contribution in cash 110000000
1011 Uncalled up subscribed capital 82500000
1012 Subscribed called up and unpaid capital 107500000
Promise of contribution
Same
109 Shareholders uncalled up subscribed capital 82500000
4613 Shareholders unpaid subscribed capital 27500000
4612 Shareholders contribution in cash 110000000
acknowledgement
same
215 goodwill 25000000
22 land 6000000
23 buildings 45000000
244 Office materials 3500000
245 Transport materials 5500000
31 Stock of goods 6600000
411 customers 4000000
401 suppliers 15000000
4021 Bills payable 400000
491 Provision for customers account 200000

4
 4611 Shareholders contribution in kind 80000000
Realization of contribution in kind
1/2/96
521 Local bank 48500000
4613 Shareholders unpaid subscribed capital 27500000
4616 Shareholders anticipated payment 21000000
Realization of cash contribution
15/2/96
6325 Notary fee 6400000
646 Registration duties 3800000
44541 VAT recoverable on fixed assets 1232000
521 Local bank 11432000
Payment of formation expenses
same
1012 Subscribed called up unpaid capital 107500000
1013 Subscribed called up paid up capital 107500000
Adjustment of capital account
same
2011 Formation expenses 10200000
781 Transfer of operating expenses 10200000
capitalization
same
6811 Operating depreciation expenses 3400000
2011 Formation expenses 3400000
Depreciation
1/1/97
1011 Uncalled subscribed capital 27500000
1012 Subscribed called up and unpaid capital 27500000
Appeal of 2nd quarter
Same
467 Shareholders outstanding capital 27500000
109 Shareholders uncalled up subscribed capital 27500000
Eligibility
1/2/97
521 Local bank 20500000
4616 Shareholders anticipated payment 7000000
467 Shareholders outstanding capital 27500000
Realization of second quarter
Same
1012 Subscribed called up unpaid capital 27500000
1013 Subscribed called up paid up capital 27500000
Adjustment of capital account
1/1/98
1011 Uncalled subscribed capital 27500000
1012 Subscribed called up and unpaid capital 27500000
Appeal of the third quarter

5
 Same
467 Shareholders outstanding capital 27500000
109 Shareholders uncalled up subscribed capital 27500000
Eligibility

521 Local bank 19000000

4616 Shareholders anticipated payment 7000000
467 Shareholders outstanding capital 26000000
Partial Realization of third quarter
1/3/98
4617 Defaulting shareholders 3000000
467 Shareholders outstanding capital 1500000
109 Shareholders uncalled up subscribed capital 1500000
Declaration of defaulting
10/5/98
521 Local bank 4560000
4617 Defaulting shareholders 4560000
Sell of defaulting shareholders
same
109 Shareholders uncalled up subscribed capital 1500000
4617 Defaulting shareholder 1500000
Replacement of defaulting shareholder
Same
6328 Sundry expenses 91200
521 Local bank 91200
Selling expenses
Same
4617 Defaulting shareholders 132450
771 interest 41250
781 Expenses transfer 91200
Interest and expenses levied
Same
4617 Defaulting shareholders 2927550
521 Local bank 2927550
Payment of defaulting shareholders
Same
1012 Subscribed called up unpaid capital 27500000
1013 Subscribed called up paid up capital 27500000
Adjustment of capital account
1/1/2000
1011 Uncalled subscribed capital 27500000
1012 Subscribed called up and unpaid capital 27500000
Appeal of the fourth quarter
same
467 Shareholders outstanding capital 27500000
109 Shareholders uncalled up subscribed capital 27500000

6
 Eligibility
1/2/2000
521 Local bank 20500000
4616 Shareholders anticipated payment 7000000
467 Shareholders outstanding capital 27500000
same
1012 Subscribed called up unpaid capital 27500000
1013 Subscribed called up paid up capital 27500000
Adjustment of capital account
same
1013 Subscribed called up and paid up capital 190000000
101 Share capital 190000000
Being social capital

3. Determination of Defaulting shareholders results

Dr 4617 Defaulting Shareholders Cr

3000000 4560000

41250 1500000

91200

C/B 2927550

60600000 60600000