Questions
ANSWERS
*BOOK KEEPING OBJ:*
1D 2D 3B 4D 5D 6B 7B 8A 9A 10A
11D 12D 13A 14C 15C 16D 17A 18* 19D 20C
21A 22B 23C 24C 25C 26A 27B 28C 29A 30D
31B 32D 33A 34C 35B 36D 37A 38B 39A 40C
*COMPLETED*
1a) payment voucher:
A document which can be used as proof that a monetary transaction has occurred between two parties. In business, a payment voucher can be used for a variety of purposes, sometimes taking the place of cash in a transaction, acting as a receipt, or indicating that an invoice has been approved for payment .
2a)Commerical account usually refers to a checking or other type of demand deposit account.
2c)
(i) Control accounts provide a summary of transactions recorded in various subsidiary ledger. Hence these are very useful to management in policy formulation.
(ii) It makes possible the division of accounting work among ledger keepers, thereby resulting in specialisation in work.
(iii) It facilitates prompt preparation of profit and loss account and balance sheet at the end of each period by providing stock figures quickly.
3a)Trial balance is defined
as a statement of all debits and credits in a double-entry account book, with any disagreement indicating an error.
3bi) Ommision of Errors :A mistake that consists of not doing something you should have done, or not including something such as an amount or fact that should be included: Errors of omission are likely to be more common than errors of commission.
3bii)Principle of Error :An accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental
principles of accounting. An error of
principle is a procedural error , meaning that the value recorded was the correct value but placed incorrectly.
3biii)Error of Commission – This occurs where proper double entry is observed except an entry is made to the wrong personal account.
3biv) Original entry of errors :An error of original entry occurs when an incorrect amount is posted to the correct accounts. A particular example of an error of original entry is a transposition error where the numbers are not entered in the correct order.
5ai)
TABULATE
ochebaba enterprises
trading profit and loss account for the year
3rd march 2015
Tabulate
opening stock 34800
add purchases 160500
add carriage involvs 2600/163100/4400
less returns 158700
C.O.G.A.F.S 193500
Less closing stock 29600
C.O.G.S 163900
cross profit 81000/244900
Expenses
carriage outwards 9300
bad debts 1600
salaries&wages (29800-5800) 24000
electricity (8700+4000) 12700
gen. Office expenses 5900
discount allowed 3600
dep land&building 12500
dep equipment 10000
net profit 9900/89500
5aii)
Sales 250400
less return 5500
net sales 244900/244900
gross profit b/d 81000
decrease indeabfut/debt 1300
discount received 7200
5b)
balance sheet as at 31st march 2015
5bi)
Tabulate
capital 350000
add profit 9900/359900
less drawings 7200/352700
current liablility
creditor 27000
electricity owning 4000
total 383700
5bii)
tabulate
Fixed assetss
land/building 350000, 37500, 212500
equipment 100,000, 29000, 71000
current assets
debtors 52000
less pro 1500, 50500
cash & bank 14300
salaries propaid 5800
stock 29600/383700
book - Theory
================================
SECTION B ANS 3
================================
8 )
Total debtors ' control account .
TABULATE DR. & CR .
Under Debit side ie Left handside:
Debit bal N 43 ,900
Sales day book N 349 ,500
Cash paid to customers N600
Interest to customers N500
Customers credit bal N 120
- - - - - - -
N 394 ,620
- - - - - - -
Bal b / d N66 ,900
UNDER CREDIT SIDE ie left handside.
Credit bal N100
Sales return N 3 , 580
Contra entries N 800
Cash frm customers N 320 ,760
Bad debts N 1 ,230
Discount allowed N 1 ,250
Bal c /d N 66 ,900
- - - - - - - - - -
N 394 ,620
8 b )
Total creditors control account
PLS TABULATE DR. & CR.
UNDER DEBIT SIDE ie left handside :
Debit bal N 23 ,140
Purchase return N3 ,200
Contra entry N 800
Cash refund to suppliers N126 ,500
Discount received N 260
N 153 ,900
- - - - - - - - -
Bal c /d N 3 ,020
UNDER CREDIT SIDE ie right handside :
Credit bal N200
Purchase day book N 148 ,680
Cash refund frm suppliers N 1 ,500
Interest by suppliers N 200
Suppliers debit bal N 300
Bal b / d N3 ,020
- - - - - - - - - -
N 153 ,900
Lorem ipsumLoremQuestions
ANSWERS*BOOK KEEPING OBJ:*1D 2D 3B 4D 5D 6B 7B 8A 9A 10A11D 12D 13A 14C 15C 16D 17A 18* 19D 20C21A 22B 23C 24C 25C 26A 27B 28C 29A 30D31B 32D 33A 34C 35B 36D 37A 38B 39A 40C*COMPLETED*1a) payment voucher:A document which can be used as proof that a monetary transaction has occurred between two parties. In business, a payment voucher can be used for a variety of purposes, sometimes taking the place of cash in a transaction, acting as a receipt, or indicating that an invoice has been approved for payment .2a)Commerical account usually refers to a checking or other type of demand deposit account.2c)(i) Control accounts provide a summary of transactions recorded in various subsidiary ledger. Hence these are very useful to management in policy formulation.(ii) It makes possible the division of accounting work among ledger keepers, thereby resulting in specialisation in work.(iii) It facilitates prompt preparation of profit and loss account and balance sheet at the end of each period by providing stock figures quickly.3a)Trial balance is definedas a statement of all debits and credits in a double-entry account book, with any disagreement indicating an error.3bi) Ommision of Errors :A mistake that consists of not doing something you should have done, or not including something such as an amount or fact that should be included: Errors of omission are likely to be more common than errors of commission.3bii)Principle of Error :An accounting mistake in which an entry is recorded in the incorrect account, violating the fundamentalprinciples of accounting. An error ofprinciple is a procedural error , meaning that the value recorded was the correct value but placed incorrectly.3biii)Error of Commission – This occurs where proper double entry is observed except an entry is made to the wrong personal account.3biv) Original entry of errors :An error of original entry occurs when an incorrect amount is posted to the correct accounts. A particular example of an error of original entry is a transposition error where the numbers are not entered in the correct order.5ai)TABULATEochebaba enterprisestrading profit and loss account for the year3rd march 2015Tabulateopening stock 34800add purchases 160500add carriage involvs 2600/163100/4400less returns 158700C.O.G.A.F.S 193500Less closing stock 29600C.O.G.S 163900cross profit 81000/244900Expensescarriage outwards 9300bad debts 1600salaries&wages (29800-5800) 24000electricity (8700+4000) 12700gen. Office expenses 5900discount allowed 3600dep land&building 12500dep equipment 10000net profit 9900/895005aii)Sales 250400less return 5500net sales 244900/244900gross profit b/d 81000decrease indeabfut/debt 1300discount received 72005b)balance sheet as at 31st march 20155bi)Tabulatecapital 350000add profit 9900/359900less drawings 7200/352700current liablilitycreditor 27000electricity owning 4000total 3837005bii)tabulateFixed assetssland/building 350000, 37500, 212500equipment 100,000, 29000, 71000current assetsdebtors 52000less pro 1500, 50500cash & bank 14300salaries propaid 5800stock 29600/383700book - Theory================================SECTION B ANS 3================================8 )Total debtors ' control account .TABULATE DR. & CR .Under Debit side ie Left handside:Debit bal N 43 ,900Sales day book N 349 ,500Cash paid to customers N600Interest to customers N500Customers credit bal N 120- - - - - - -N 394 ,620- - - - - - -Bal b / d N66 ,900UNDER CREDIT SIDE ie left handside.Credit bal N100Sales return N 3 , 580Contra entries N 800Cash frm customers N 320 ,760Bad debts N 1 ,230Discount allowed N 1 ,250Bal c /d N 66 ,900- - - - - - - - - -N 394 ,6208 b )Total creditors control accountPLS TABULATE DR. & CR.UNDER DEBIT SIDE ie left handside :Debit bal N 23 ,140Purchase return N3 ,200Contra entry N 800Cash refund to suppliers N126 ,500Discount received N 260N 153 ,900- - - - - - - - -Bal c /d N 3 ,020UNDER CREDIT SIDE ie right handside :Credit bal N200Purchase day book N 148 ,680Cash refund frm suppliers N 1 ,500Interest by suppliers N 200Suppliers debit bal N 300Bal b / d N3 ,020- - - - - - - - - -N 153 ,900
