a i. Explain the following terms:
Accumulated Fund
a ii. Explain the following terms:
Statement of Affairs
b. List five sources of income for a not-for-making organization
c. State three differences between Receipts and Payments Account and Income and Expenditure Account
a. List three accounts prepared by the head office for the branch
b. Explain two methods of accounting for goods sent to branch
c. State four reasons for preparing departmental accounts
a. The cash book of Dupe Enterprises showed an overdrawn balance of #216,126 and her bank statement also showed #905,625 overdrawn. On 31/12/2016, a detailed examination of the records showed the following differences:
(i) A cheque drawn for #697,550 had been entered in the cash book as #365,050.
(ii) A standing order of #420,000 and bank charges of #8,750 entered in the bank statement has not been recorded in the cash book.
(iii) Bank lodgment of #1,922,375 on 27th December 2016 has not been credited by the bank.
(iv) Dividend received of #315,000 had been recorded in the bank but not entered in the cash book.
(v) Cheques paid to suppliers totalling #1,165,500 has not been presented for payment.
(vi) A cheque for #700,000 received from Tunde was dishonoured by the banki but no entry had been made in the cash book.
(vii) A cheque of #256,813 received from a customer was entered as a payment in the cash book.
(viii) A cheque for #350,000 recorded in Dupe Enterprises cash book had been credited by the bank to Dudu Enterprises' account.
(ix) An amount of #1,050,000 received from customer was paid directly to Dupe Enterprises account but no entry was made in the cash book.
You are required to prepare:
Dupe Enterprises Adjusted Cash Book
b. The cash book of Dupe Enterprises showed an overdrawn balance of #216,126 and her bank statement also showed #905,625 overdrawn. On 31/12/2016, a detailed examination of the records showed the following differences:
(i) A cheque drawn for #697,550 had been entered in the cash book as #365,050.
(ii) A standing order of #420,000 and bank charges of #8,750 entered in the bank statement has not been recorded in the cash book.
(iii) Bank lodgment of #1,922,375 on 27th December 2016 has not been credited by the bank.
(iv) Dividend received of #315,000 had been recorded in the bank but not entered in the cash book.
(v) Cheques paid to suppliers totalling #1,165,500 has not been presented for payment.
(vi) A cheque for #700,000 received from Tunde was dishonoured by the banki but no entry had been made in the cash book.
(vii) A cheque of #256,813 received from a customer was entered as a payment in the cash book.
(viii) A cheque for #350,000 recorded in Dupe Enterprises cash book had been credited by the bank to Dudu Enterprises' account.
(ix) An amount of #1,050,000 received from customer was paid directly to Dupe Enterprises account but no entry was made in the cash book.
You are required to prepare:
Bank Reconciliation Statement as at 31st December 2016
a. The summary of the Receipts and Payments of the Adamfo Social Club for the year ended 31st December 2019 is as follows:
| $ | |
| Receipts: | |
| Subscriptions | 4000 |
| Sale of competition tickets | 800 |
| Donations | 300 |
| Refund of rent | 1000 |
| Payments: | |
| Rent | 3000 |
| Honorarium to speaker | 2200 |
| Secretarial expenses | 200 |
| Donations to charity | 60 |
| Competition prizes | 600 |
| Stationery and printing | 320 |
Additional information:
| 01/01/19 | 31/12/19 | |
| $ | $ | |
| Equipment at valuation | 1950 | 1500 |
| Subscriptions: | ||
| Arrears | 120 | 170 |
| Advance | 30 | 60 |
| Owing to suppliers of competition prizes | 90 | 120 |
| Stock of competition prizes | 70 | 80 |
You are required to prepare for the club and for the year ended 31st December 2019:
Subscription Account
b. The summary of the Receipts and Payments of the Adamfo Social Club for the year ended 31st December 2019 is as follows:
| $ | |
| Receipts: | |
| Subscriptions | 4000 |
| Sale of competition tickets | 800 |
| Donations | 300 |
| Refund of rent | 1000 |
| Payments: | |
| Rent | 3000 |
| Honorarium to speaker | 2200 |
| Secretarial expenses | 200 |
| Donations to charity | 60 |
| Competition prizes | 600 |
| Stationery and printing | 320 |
Additional information:
| 01/01/19 | 31/12/19 | |
| $ | $ | |
| Equipment at valuation | 1950 | 1500 |
| Subscriptions: | ||
| Arrears | 120 | 170 |
| Advance | 30 | 60 |
| Owing to suppliers of competition prizes | 90 | 120 |
| Stock of competition prizes | 70 | 80 |
You are required to prepare for the club and for the year ended 31st December 2019:
Competition Prizes Suppliers Account
c. The summary of the Receipts and Payments of the Adamfo Social Club for the year ended 31st December 2019 is as follows:
| $ | |
| Receipts: | |
| Subscriptions | 4000 |
| Sale of competition tickets | 800 |
| Donations | 300 |
| Refund of rent | 1000 |
| Payments: | |
| Rent | 3000 |
| Honorarium to speaker | 2200 |
| Secretarial expenses | 200 |
| Donations to charity | 60 |
| Competition prizes | 600 |
| Stationery and printing | 320 |
Additional information:
| 01/01/19 | 31/12/19 | |
| $ | $ | |
| Equipment at valuation | 1950 | 1500 |
| Subscriptions: | ||
| Arreas | 120 | 170 |
| Advance | 30 | 60 |
| Owing to suppliers of competition prizes | 90 | 120 |
| Stock of competition prizes | 70 | 80 |
You are required to prepare for the club and for the year ended 31st December 2019:
Competition Trading Account
d. The summary of the Receipts and Payments of the Adamfo Social Club for the year ended 31st December 2019 is as follows:
| $ | |
| Receipts: | |
| Subscriptions | 4000 |
| Sale of competition tickets | 800 |
| Donations | 300 |
| Refund of rent | 1000 |
| Payments: | |
| Rent | 3000 |
| Honorarium to speaker | 2200 |
| Secretarial expenses | 200 |
| Donations to charity | 60 |
| Competition prizes | 600 |
| Stationery and printing | 320 |
Additional information:
| 01/01/19 | 31/12/19 | |
| $ | $ | |
| Equipment at valuation | 1950 | 1500 |
| Subscriptions: | ||
| Arreas | 120 | 170 |
| Advance | 30 | 60 |
| Owing to suppliers of competition prizes | 90 | 120 |
| Stock of competition prizes | 70 | 80 |
You are required to prepare for the club and for the year ended 31st December 2019:
Income and Expenditure Account
a. The authorized and issued share capital of Ozideli Limited comprised 400,000 ordinary shares of Le 1 each and 100,000 8% preference shares of Le 1 each. The trial balance at the end of the year was as follows:
Trial Balance as at 31st December 2018
| Dr | Cr | |
| Le | Le | |
| Sales | 1,500,000 | |
| Purchases | 1,000,000 | |
| General expenses | 280,000 | |
| Debenture interest | 8,400 | |
| 7% Debentures | 120,000 | |
| Ordinary share capital | 400,000 | |
| 8% Peference share capital | 100,000 | |
| Plant and machinery at cost | 160,000 | |
| Motor vehicle at cost | 70,000 | |
| Profit and loss account (31/12/17) | 8,600 | |
| Creditors | 172,400 | |
| Debtors | 500,000 | |
| General reserve | 10,000 | |
| Provision for depreciation: | ||
| Plant and Machinery; | 20,000 | |
| Motor vehicle | 10,000 | |
| Bank | 22,600 | |
| Stock (31/12/17) | 300,000 | |
| 2,341,000 | 2,341,000 |
Additional information:
(i) Stock on hand at 31/12/2018 was Le 400,000;
(ii) The directors were to receive remuneration of Le 70,000;
(iii) Depreciation is to be calculated on plant and machinery at Le 32,000 and motor vehicle at Le 14,000;
(iv) The directors decided to transfer Le 12,000 to general reserve;
(v) Preference dividend for 2018 will be paid on 10/01/2019.
You are required to prepare:
Trading, Profit and Loss and Appropriation Account for the year ended 31st December 2018;
b. The authorized and issued share capital of Ozideli Limited comprised 400,000 ordinary shares of Le 1 each and 100,000 8% preference shares of Le 1 each. The trial balance at the end of the year was as follows:
Trial Balance as at 31st December 2018
| Dr | Cr | |
| Le | Le | |
| Sales | 1,500,000 | |
| Purchases | 1,000,000 | |
| General expenses | 280,000 | |
| Debenture interest | 8,400 | |
| 7% Debentures | 120,000 | |
| Ordinary share capital | 400,000 | |
| 8% Peference share capital | 100,000 | |
| Plant and machinery at cost | 160,000 | |
| Motor vehicle at cost | 70,000 | |
| Profit and loss account (31/12/17) | 8,600 | |
| Creditors | 172,400 | |
| Debtors | 500,000 | |
| General reserve | 10,000 | |
| Provision for depreciation: | ||
| Plant and Machinery; | 20,000 | |
| Motor vehicle | 10,000 | |
| Bank | 22,600 | |
| Stock (31/12/17) | 300,000 | |
| 2,341,000 | 2,341,000 |
Additional information:
(i) Stock on hand at 31/12/2018 was Le 400,000;
(ii) The directors were to receive remuneration of Le 70,000;
(iii) Depreciation is to be calculated on plant and machinery at Le 32,000 and motor vehicle at Le 14,000;
(iv) The directors decided to transfer Le 12,000 to general reserve;
(v) Preference dividend for 2018 will be paid on 10/01/2019.
You are required to prepare:
Balance sheet as at that date
