(a) What are closing entries?

(b) Distinguish between a branch and a department.

(c) State four reasons for the preparation of branch accounts.

(a) State three effects of drawings on the business of a sole proprietor.

(b) Explain how the following items are treated in the balance sheet:
i. accrued expenses
ii. prepaid expenses
iii. accrued income.
 

(a) Outline three reasons for which a cheque would be dishonored.

(b) Explain the following terms:
i. petty cash float.
ii. contra entries.
iii. imprest system

(c) State three advantages of keeping petty cash book using imprest system. 

The following transactions were extracted from the books of Adamu, a sole trader for the month of March 2016.

March 4: Sold 80 bags of maize on credit to Papuk at N255 per bag subject to a trade discount of 5%.
March 10: Sold goods on credit to Abass for N1,170.
March 15: Received a cheque from Papuk for the amount due, less a discount of 10%.
March 20: Received cash of N900 from Abass.

You are required to prepare:

(a) Sales Journal;

(b) Customers' Accounts in the Sales Ledger;

(c) Sales Ledger Control Account

Ubochi and Hassanah started a partnership business on 1st January 2015. They contributed D 300,000 and D 250,000 respectively as capital. Their partnership deed stated that:

i. interest of 8% should be paid on capital per annum

ii. Hassanah would be paid D 10,000 monthly as a salary

iii. interest on drawings is 5%

iv. the profits are to be shared in the ratio 3:2 respectively. At the end of the year, the profit made was D300,000. During the period, Ubochi and Hassanah made drawings of D20,000 and D15,000 respectively.

You are required to prepare:
(a) Profit and Loss Appropriation  Account for the year ended 31st December 2015;

(b) Partners' Current Accounts.