PASSPORT TO HND IN ACCOUNTING! CBE Hud) casting Taxation, Fin gh Hzons Gil Pinancal’ @owsa768/90196191 | 20) AYR COLLINS A.PASSPORT TO HND IN ACCOUNTING: Case stnds, costing Taxation, Fin Mgt, Econs. e Adv Financial > MANUFACTURING ACCOUNTS, > BALANCE SHEET > _PROFIT AND LOSS ACCOUNT (with appropriations account) QUESTION 1: respectively. Below is A, B, & C are in partnership sharing profits & losses in the ratios %, 4, & Y their trial balance extracted from the books on 31/12/2013. = ass ELEMENTS Es TBR er HOH Capital AICS: A 20.000 B 20.000 Cares 16.000 Current AICS: A | 440 480 Se 400 Purchases & 77888 233680, | Stocks on 1/01/: Raw materials 43.040 wip 18.880 Finishes goods 40.960 i} Factory power & lighting 7240 | Factory wages 33.080 Factory rent & rates 10 800 Plant &machinery(factory) 33.600 Sundry debtors & creditors 26.760 Delivery vehicles 2480 = Office furniture & equipment = Office running expenses Partners” salaries Selling expenses a Bank interest earmed(io june2013) 320 ‘Cash at bank s 5.400 TOTALS = 328280 328280 | ‘Additional information: 1) Stock on 31/12/2013: Raw materials 40 800 000 F; WIP 20 680 000F: Finished goods 28 480 000F. 2) Depreciation isto be charged thus: plant & machinery 20%, Delivery van 20% & office furniture & equipment 5%. 3) Factory rent amounting to 1 000 00OF had been paid in advanced, 4)_ Bills for factory power & lighting amounting to 520 00OF were due but unpaid on 31/12/2013. '5) Bank interest of 360 O00F had been earned but not yet received by 31/12/2013 6) The partners are each entitled to 10% interest on capital invested, ‘Work Required: You are required to prepare; 1.1) A Manufacturing account (05 mks) 1,2) A Trading account. (04 mks) 1.3) A Profit & Loss account (with appropriation account) for the year ended 31/12/13. (08 mks) 79.78.47 63/9019 6191.PASSPORT TO HND IN ACCOUNTING: Cl Si Soe as RE Sea 1.4) A Balance Sheet as at 31/12/2013, ( (03 mks) ARREYCAM ETS, a manufacturing firm located in AFAB ~ MANYU DIVISION and presents to you the extract of its trial balance for the year ended 31% December 2013 ECEA ECFA Purchase of raw materials 258,000 uel and light 21,000 Administration salaries 17,000 Factory wages 59,000 Carriage outwards 4,000 Rent and business rates 21,000 Sales 482,000 Returns inward 7,000 General Office expenses 9,000 Repairs to plant and machinery 9,000 Stock at 1 January 20X6: Raw materials 21,000 Work in progress 14,000 Finished goods 23,000 Sundry creditors 37,000 Capital account 457,000 . Freehold premises 410,000 Plant and machinery 80,000 Debtors 20,000 Accumulated prov. for dep. on plant and mach 8,000 Cash in hand 11,000 284.000 284,000 Make provision for the following: (i) Stock in hand at 31 December 20X6: ~ Raw materials 25,000F Work in progress 11,000F - Finished goods 26,000F. (ii) Depreciation of 10% on plant and machinery using the straight Tine method. (iii) 80% of fuel and light and 75% of rent and rates to be charged to manufacturing. (iv) Doubtful debis provision: 5% of sundry debtors (¥) 4,000F outstanding for fuel and light (vi) Rent and business rates paid in advance: 5,000F (vii) Market value of finished goods: 382,000F. Reauire 1) Prepare the manufacturing, Trading and Profit and Loss Account for ARREYCAM ETS for the year ended 31" December 2013 2). Prepare the balance sheet as at 31" December 2013 3) Considering the market value of Finished Products, prepare the manufacturing, Tradl Profit and Loss Account for ARREYCAM ETS for the year ended 31* December 2013 01g 8191 E49, fi975.476PASSPORT TO HND IN ACCOUNTING: Case sud), costing, Talation, Fim Mat, Econs ed, Financial {HND 2013} _ QUESTION 32" ‘T. Morgan is the proprietor ofa manufacturing business, making two products (Brand X and Brand Y), On 31 December 2012, the following Trial Balance was prepared: CFAF FAR ‘Trade debtors and trade ereditors 32950 000 11680 000 Bank interest 4300 000 Cash discounts allowed 1 260 000 Carriage outwards 12750000 Manufacturing wages: Brand X 78 640 000 Brand Y 66 900 000 Sundry manufacturing expenses: Brand X 9100 000, Brand Y 10 250.000 Office salaries 14.570 000 Sundry office expenses 7 260 000 Selling expenses, 21 540 000 Raw materials purchases 88 500 000 Sales: Brand X 189 940 000 Brand Y 165 870 000 Stock, | January 2012: Raw materials 14 260 000 Brand X 25 200 000 Brand Y 17.900 000 Land and buildings 61.000 000 Machinery and plant 28 800 000 Office equipment 4.640 000 Vehicles 8 600 000 Capital 118 870 000 Drawings 23 500 000 Petty cash 340 000 Bank overdraft 45.900 000 532.260 000 532.260 000 REQUIRED: Prepare T. MORGAN’s Manufacturing, Trading and Profit and Loss Accounts for the year to 31 December 2012, showing the net profit or loss on each brand and the Balance Sheet as at 31 December, taking the following into account: (a) Stock at 31 December 2012: Raw materials 22.400 000CFAF Brand X 21.300 000CFAF Brand Y 17.400 000CFAF (b) Of the total cost of raw material consumed in manufacturing, 46 300 000 CFAF applies to Brand X and the remainder to Brand Y (©) Allow for depreciation at the following rates (all on book value): Machinery and plant 20°, Vehicles 30%, Office equipment 10%, All the amounts are to be charged in equal proportions to Brand X and Brand Y. The vehicles are used for transportation of goods to customers. (2) Bach Brand is to be charged with one — half of any non ~ manufacturing expenses. 29780703 / 90196191 1) AYbK coun a. { 20PASSPORT TO HND IN ACCOUNTING: Case study costing) Taiulun im Wjl Bens ef dl Fined Question 4: From the following information supplied by Mac Donald Products PLC, you are required to prepare the Manufacturing, Trading and Profit and Loss Account for the year ended 31" December 2013. FCFA (000) Ledger Balance at 31 December Sales 600 000 Stocks at 1 January: Raw materials 8.000 Work — in — progress 12.000 Finished goods 23.000 Purchases of raw materials 120 000 Carriage on raw materials 1.000 Purchases of finished goods 25 000 Direct factory wages 180 000 Royalties 12000 Factory machinery at cost 120 000 Provision for depreciation of factory machinery 48.000 Office equipment at cost 50000 Provision for depreciation of office equipment 15.000 Delivery vans at cost 80 000 Provision for depreciation of delivery vans 40000 Provision for doubtful debts 4.000 Lighting and heat: Factory 1000 Office 2.000 Rent and rates: Factory 16000 Office 4.000 Factory general expenses 15000 Maintenance of factory machinery 34.000 Office salaries = 48.000 NOTE: (000) 1). Stocks at 31" December 2013: Raw materials 10.000 Work — in — progress 15000 Finished goods 27000 2) At31" December 2013, the following information is available: Lighting and heat unpaid: Factory 1000 Office 1000 Rent and rates prepaid: Factory 4.000 Office 1000 23.000 Direct factory wages unpaid Depreciation on the straight line method is to be provided for as follows: Factory machinery 20%, Office equipment 20%, and Delivery vans 25% 4) Provision for doubtful debts should be adjusted to 6 000 00OF 4763/9019.6191PASSPORT-TO HIND IN ACCOUNTING! Case tad, coiting. Tatalion, Fin. Mg Reon A Taal QUESTION 4; ee ae eg ‘The balance sheets of knight Ld as at 31 December 2010 and Year 201 Tare as follows: Knight Ld Balance sheet as at 31 December 2011 FCPA FCPA FCPA ECFA le fixed assets at cost 150,000 178,100 Accumulated depreciation 65,000 85,000 102,600 Investments 24,000 28,900 Current assets Stock 19,000 15,900 Investment in treasury bills 5,000 3,000 Debtors 8,200 6,000 Cash at bank and in hand 73300 9.540 39,500 34.440 Creditors: amounts due within one year Trade creditors and accruals 8,100 11,600 Ordinary dividend payable 2,000 6.000 10,100 17,600 Net current assets 16,840 148,340 Long term debt 13,000 15340 Capital and reserves Ordinary shares of 1F each share premium Retained earnings Additional Information 50,000 8,000 75,400 133.400 (2) Interest of SO0Fwas paid on bank loans during Year 2011 of 8,200F was sold at a profit of SOOF. ( Investments costing 5,000F were sold ata loss of 1,000F. The company purchased more during the Year 2011 (5) A bonus issue of | for 5 shares hel ‘The company issued shares for cas (6) Treasury bills costing 2,000F were Required dat the beginning of Year 201 Iw: sh ata premium during the year. sold for cash of 2,500F fas made during the year, Using the indirect method, prepare the cash low statement for Knight Ltd for Year 2011, in accordance with FRS | (reviPASSPORT To ND IN ACCOUNTING: Cll coutngy ation Pim gh Baoks SEA Fnarcal ‘The trading and profit and loss account for 2013 and the balance sheets as at 31°" December 2012 and 2013 of Timpolo Ltd are as follows: Sales Cost of sales Gross profit Loss expenses = Rent Advertising Wages and salaries Interest Depreciation Net profit for the year ‘Timpolo Ltd ‘Trading and profit and Joss aceount for the vear ended 31° December 2013. Less ordinary dividends paid and proposed Retained profit for the year Fixed assets, Tangible fixed assets at cost ‘Accumulated depreciation Current assets Stock Debtors and. prepayments Cash at bank and in hand Creditors : amounts ‘due one year ‘Trade creditors and accruals, Ordinary dividend payable Interest payable Net current assets 7978K7 6390196191 FCFA 23,500 13,200 12,100 10,000 1,200 23,300 FCFA 15,000 26,000 54,000 7,100 31,000 Timpolo Ltd Balance sheet as at 31" December FCFA 250,000 125.000 125.000 FCFA 32,900 12,000 1.200 FORA 390,000 190,000 200,000 133,100 66,900 40,900 26,000 2013, FCFA 340,000, 184,000PASSPORT TO HND IN ACCOUNTING: Cave sid) INCOME STATEMENT ANDTHE BALANCE SHEET The following trial balance was extracted from the books of Alex for the year ended 31 December 2008. (Q00FCFA) (QO0FCFA) 79.75.0763 /9019 61 91 EE COLLINS A. __ AYUFin. Mgt, Econs, ol Adv. Financial. PASSPORT TO HND IN ACCOUNTING: Case sud, costing, Maxation Shop at cost 36000 Machines at cost 24.000 Transport Van at cost 4.800 Furniture at cost 2.880 Depreciation of shop Depreciation of machines Depreciation of Transport van Depreciation of furniture Purchases 14.808 Stock 1 January 2008 2580 Debtors and creditors 1680 2.004 Cash at hand 3.060 Sundry expenses 600 Electricity 540 Water bills 180 Salaries 1560 Drawings 1920 General Repairs 840 Capital 59 880 Sales 24780 Provision for bad debts 396 456 Commission received Returns Outwards The following information is also avai 1, Inventory at 31 December 2008 was valued at 1 512 000F 2. Provision of bad debts to be increased by 5% of total debtors, 3. Provision for depreciation: = Shop at $% on cost ~ Machines and transport van at 10% on cost per annum. - Commission prepaid: 24 000F ~ Outstanding salaries: 300 000F 4, 240 000F of general repairs for the year was on the proprietor’s personal property Require Prepare the income statement and the balance of Alex as at 31 December 2008, PIC CONCERNED: ; ___ > FINANCIAL STATEMENTS OF LIMITED LIABILITY COMPANIES, (RIND 2018)" eS Se eS SOUESTIONT CAMCCUL is a Public Limited Company and the following information is atrial balanc from her books for the period ended 31/12/2012. 10% preference share capital Ordinary share capital 10% debentures (repayable 2015) Goodwill at cost 15,000 Buildings at cost 95,000 Equipment at cost 18,000 Motor vehicles at cost 17,200 79.784763/90196191 { 212 }e— AYUKPASSPORT TO HND IN ACCOUNTING: Caslsiud)) costing Taxation, Fike gi, Boon Add Financial Provision for depreciation: equipment 1.1.2012 2,400 Provision for depreciation: motor vehicles 1.1.2012 5,160 Stock 1.1.2012 les Purchases Carriage inwards Salaries and wages Directors’ remuneration Motor expenses Rates and insurances General expenses Debenture interest Debtors Creditors Bank General reserve 5,000 Share premium account 14,000 Interim ordinary dividend paid 3,500 Profit and loss account 31.12.2011 98,200 11370 16,940 ‘The following adjustments are carried after the review of the records by the CFO: (1) Stock at 31.12.2012 was 27,220. (ii) Depreciate motor £3,000; equipment 1.200. (iii) Accrued debenture interest 1,500. (iv) Provide for preference dividend 2,000 and final ordinary dividend of 10%, (v) Transfer to general reserve 2,000. (vi) Write off goodwill 3,000. (vii ) Authorised share capital is 20,000 for preference shares and 100,000 ordinary shares. (viii) Corporation tax 5,000. Required: 4). Prepare a trading and profit and loss of CAMCCUL for the year ended 31/12/2012 »)_ Prepare the balance sheet of CAMCCUL => COMPANY ACCOUNTS = THE ISSUE OF SHARES HND 2009} zs QUESTION 1; alent The Directors of the WORLD TRADE CENTER CO LTD invited applications for 1 500 ordinary shares of 10 000 FCFA each at an issue price of 11 500 FCFA per share payable as follows: ‘+ 75% of the nominal value on application on 1* April 2008; ‘+ 5% of the nominal value and the total share premium on allotment on 30 April 2008; + 20% of the nominal value on the first and final call on 31" May 2008. Applications were received for 1 800 shares and it was decided to deal with these as follows: 1. To refuse allotment to applicants for 80 shares, 2, To give full allotment to applicants for 220 shares; 3. Toallot the remainder of the available shares proportionately among the other applicant; 4, To utilize the surplus received on applications in part payment of amounts due on allotment. ‘An applicant to whom 40 shares had been allotted failed to pay the amount due on the first and final AYUKEOLINSA. 7975.47 63 /90.19 6191 asPASSPORT TO HND IN ACCOUNTING? Case sud) Couling) Taluluon Pin Age lBtone SEAM PRUNGal call and his hares were declared forfeited on 31” July 2008, These shares were reissued on 3" September 2008 as fully paid at 9 000 FCFA per share. ‘Task: Show how the transactions would be recorded in the company’s journal and ledger accounts {HIND 2014) Ais af QUESTION 23 MTN CAMEROON decided to modify her capital on the 01/01/2012, by issuing 2 000 preference shares of nominal value 5 000F at 7 000F payable as follows = Onapplication 1 000 Frs. = Onallotment 2 500 Frs. = On 1" call (With premium) 3 600 Frs = On2"call 500 Applications were received for 5 000 shares. A refund of money was made in respect of 1000 shares, ‘while the remaining 4 000 shares applied for, an allotment was made on the basis of 1 share for every 2 applied for. The excess application money was set off against the allotments were all paid with the exception of a holder of 160 shares who failed to pay the 1" and 2" calls. A resolution was passed by the board of directors to forfeit the shares. The forfeited shares were later issued to JOHN at 4 500 Frs. each Required: Record the modification of capital in a journal at 01/01/2012 and also post the entries onto their individual ledger accounts showing the entire operation. Chicago. The goods were charged at a proforma invoice value of $10,000 including a profit of 25% on cost. On the same date the consignor paid $600 for freight and insurance. On 1* July, the consignee paid clearing charges of $1,000, carriage of $200. On 1" August, the consignee sold 80 cases for $10,500 and sent a remittance for the balance due to the consignor after deducting commission at the rate of 5% on gross sale proceeds. Required Prepare a consignment account and ARREYCAM & Co in the books of Z & Co. TOPIC CONCERNED: e __>_ PARTNERSHIP ACCOUNTS. {HND 2007) QUESTION 4: ‘Abima and Vashira started business on 1/4/2005 and were to share profits and losses in the ratio 2:1 The following balances were extracted from their books on 31/3/2006: ECFA Tene 35 0000000, 79.75.47 83/9019 61 AYUK COLLINS A.PASSPORT TO HIND IN ACCOUNTING: (ase shud, costing, Tatation, Fine Mj, Tacons, Ad Financial [Bani bafances 7186000] [Fumiure 38217 000 ‘Sundry creditors —___ [9 649 00 Delivery vans 25.201 000 [ Miscellaneous 533 000, Purchases 16 901-000 Capital accounts: Vashira = loan 2000-000. Abima 40000000 —] | Provision for bad debts 175 000 [Vashira 20,000 000 Drawings: Sundry debtors 7.903.000, [ a 500000 _| Sales_ [39 565 000) Vashira 320.000 [[Renis and rates 726 000 Stationery 274 000 Office equipment 36 192 000 Bad debts 186000 | The following additional information is also given: (i) Stock on 31/3/2006 was 940 000 FCFA. (ii) There was a salary of 300 000 FCFA to Abima and Vashira each for running the partnership ii) Interest on loans was: 4% per annum for partners’ advances and 8% per annum on bank loans. (iv) The pariners were entitled to interest on their capital at the rate of 2% per annum. (¥) Stationery of 38 600 FOFA remained unused on 31/3/2006. (vi) The provision for bad debts was reviewed to 158.000 FCFA at the close of business. (vii) Fixed assets to be depreciated at the rate of 5% per annum. Required: Prepare the partners trading, profit and loss account for the year ended 31/3/2006 and the balance sheet as at that date Three partners Ake, Eke and Konda are in partnership sharing profits and losses equally. Their balance sheet as at 30/06/2008 was as follows: ame = rabies aad Buldings 3400 000] CABITAL ACS Siock 1200000 | Ake 1200 000 Debtors 1 200 000 Eke 1200 000 ‘Cash/bank 2.400 000 Konda 1.200.000 Creditor 3.600 000 _| aro | zon ‘On the same date, the following modifications took place: a) Partner Konda is retiring. b) Goodwill is evaluated at 3 600 000 FCFA. ©) Buildings are valued to have an increase of 1 080.000 FCPA. d) Ake and Eke are to continue in partnership as equal partners. Task: Chronological show the recordings to adjust the books on the assumption that: 7975.4763/90 196191 Se AYUK COLLINS A.PASSPORT TO HND IN ACCOUNTING: (iase stud) costing Taxation, Fin Mgt, cons. ol Adw ‘Fin 1, The partners wish Goodwill should remain in the books. The partners do not want Goodwill to remain in the books {HND 2009} QUESTION 3: CHANLIN, SAMILI and WOLF are in partnership for the fabrication, assembly and distribution of Motor eyeles within the CEMAC region. They agreed to share their proceeds equally. At the year ended 31/12/2007, their balance sheet was as follows: Aika Amount CoabaTnes EEE Buildings & Furniture | 36.000 000 CAPITAL ACS | stock 6 750.000 | CHANLIN 27.000 000 | Debtors 1350 000 SANILI 9.000 000 Cashybank 400 000 WOLF 4500 000 se | cadens 9.000.000 3 -49:500.000 49500 000 ‘= From this date, the three partners decided to Part Company. On the 1" February 2008, the buildings and furniture were sold for 29 700 000 FCFA and realization expenses were 1 800 000 FCFA. The creditors were immediately paid off and the balance distributed accordingly. © On 1" April 2008, stock was realized at 5 400 000 FCFA and the partners distributed it for the second time, + By May 5" 2008, receipt from debtors was realized with a bad debt of 810 000 FCFA and the partners made a third and final distribution. ‘Task: Carry out the distribution showing the amounts paid to each partner. (20 marks) Batico Ltd and Cedo Ltd agree to combine and form a new company under the name Bacedo Ltd with a capital of 300,000,000 FCFA in 1F shares to acquire the business. The sale contract provides that the new company is to take the whole of the assets and liabilities of both companies, the consideration being the issue to Batico Ltd of 200,000,000 FCFA and to Cedo Ltd of 75,000,000 FCFA in fully — paid shares, the later company was to receive 7,500,000 FCFA in cash. "The new company is to pay the liquidation expenses of Batico Ltd 900,000 FCFA and Cedo Ltd 600,000 FCFA and its own formation expenses of 1,800,000 FCFA, these amounts to be charged ‘against the capital reserve, a BATICO LTD. CEDO LTD” | Dr (000 FCFA) C000 | Dr (000 FCFA) $i ab FCA) : oe Tssued shave capital z 150 000 Goodwill 25000 10.000 5 Leaseh | 95 600 = 45.280 Plant & m Z 35.250 ne 21 560 ‘Stock —in — trade 18 760 = Ez 12.685 [Sundry debtors | 12.655 6525 indy ¢ z | 620 = 5680 [Mongage property Nene fea eg Bank balance _ a 37 605 S 3130 A768 oe _-AYUK.COLLINS A.PASSPORT TO HND IN ACCOUNTING: cis us sntng Matton, Fn gh, COREL ARE nancial Reserve 30000 | Profit & Toss balances 6250, 214 870 214 870 99180 | 99180 al -FSsame tar Te avalgamation was duly completed, the mortgage paid off and te sundry aoels of Cals Lal mere revalved and entered in the books of Batco Ltd as follows = Leasehold property 140 700 000 Plant & machinery 55 500 000 Stock 31,000 000 = Sundry debtors 81935 000 Prepare ‘The Closing accounts for the old companies {HND 2013) QUESTION “TINO and SIMO are in partnership sharing profits and losses inthe ratio 2:1. The partnership balance sheet as at 30” December 2012 was as follows: 000 FCFA 000 CRA 000FCFA 000 FCFA FIXEA ASSETS CAPITAL AICS: Buildings 24.000 TINO 20000 Delivery vans 6 000 SIMO 14.000 34.000 Furniture 1500 31,500 CURRENT AICS: CURRENT ASSETS TINO, 450 Stock 1230 ‘SIMO 370 820 Debtors 950 (CURRENT LIABILITIES Cash at bank 1700 Creditors 1-400 Cash in hand 800 Wages prepaid 0 4740 Rentowing 29 420 36240 For the purpose of raising more capital, the partners decided to admit Nana who brought a computer costing 2 500 000 FCFA and paid 10 000 000 FCFA into the pariners’ bank account on 2 January 2013, the day he was finally admitted. (On Nana’s admission the following decisions were taken i, Toraise the good will account of 3 000 000 FCFA to be credited o the capital accounts of old partners. Tive new partners to share profits and losses in the ratio 3:2:1 iii, Interest on partners’ capitals and drawings to be 5% and 214% respectively During the year the following drawings were made: TINO 200 000 FCFA SIMO 250 000 FCPA NANA 150 000 FCRA During the period ended 31" December 2013, the partnership realized a net profit of 14 460 000 FCA. 1) Present the new partnership balance sheet immediately after the admission of Nana )_ Prepare the profit and loss and appropriation account ©) Prepare the parners’ current accounts as at 31" December 2013 in columnar forms 7975.47 63/9019 6191