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Hbc2104:Introduction To Accounting Ii Question Paper
Hbc2104:Introduction To Accounting Ii
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2012
QUESTION ONE ( 25 MARKS)
The following trial balance relate to Intercities Ltd for the year ended 31/3/12
Shs. Shs. Issued share capital 200,0000 100,000 ordinary shares, shs. 20 per value Stock 1/4/11 400,000 Purchases 3,445,000 Director fees 100,000 Salaries & wages 371,000 Office equipment 1,450,000 Debtors 685,000 Creditors 670,000 Sales 4,300,000 4% bank loan 600,000 Discounts allowed 40,000 Discount received 30,000 Shares premium 450,000 Revenues 400,000 Profit and loss bal. b/f 500,000 Bank 245,000 Bad debts 60,000 Provision for doubtful debts 50,000 Leasehold premises 2,100,000 Stationery 32,000 Insurance 72,000
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9,000,000 9,000,000
Additional information: 1. Stocks as at 31.3.12 shs. 850,000 2. Accrued salaries shs. 70,000 3. Prepaid insurance shs. 22,000 4. Provision for doubtful debts was to be maintained at the rate of 5% on debtors. 5. Interest on loan has not been paid. 6. Directors have proposed; (i) Shs. 200,000 be transferred to the General reserve (ii) 5% dividends be paid n ordinary share capital.
Required: (a) Income statement for the year ended 31st march 2012 ( 10 Marks) (b) Profit appropriate account for the year ended 31.3.2012 ( 5 Marks) (c) Balance sheet as at 31.3.12 ( 10 Marks)
QUESTION TWO ( 15 MARKS)
Nduma and Ngwaci operate partnership business. The partnership deed provides for; Profits and losses to be shared between Nduma and Ngwaci in the ratio of 5:3 respectively. Drawings to be charged an interest of 12% p.a on the balances at the end of the year. The following balances relate to the firm as at 30.12.12
Shs. Capital: Nduma 800,000 Ngwaci 600,000
Drawings: Nduma 45,000 Ngwaci 25,000
Creditors 508,000 Net profit 193,000 5yr bank Loan 500,000 Current assets 830,000 Bank overdraft 336,000 Current accounts - Nduma 100,000 - Ngwaci 70,000 Fixed assets 2,207,000
Required: (a) Profit appropriation Account ( 8 Marks) (b) Partners current Account ( 7 Marks)
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QUESTION THREE ( 10 MARKS)
The following balances were extracted from the books of Uthiru Volley ball Club.
31.12.10 31.12.11 Subscriptions received in the advance 200,000 150,000 Subscriptions owing 80,000 120,000 Sports equipment 750,000 700,000 Club House 1,300,000 1,300,000 Canteen stock 400,00 480,000 Bank 160,000 100,000 Creditors for canteen purchases 300,000 220,000 Drawing the year ended 31.12.11 subscriptions received amounted to Shs. 140,000
Required: (a) Prepare a subscription Account for the year ended 31.12.11 ( 3 Marks) (b) Determine the Accumulated as at 31.12.11. ( 3 Marks) (c) Explain the reasons as to why enterprises or organizations should keep proper and complete business records. ( 4 Marks)
QUESTION FOUR ( 20 MARKS) The following balances were extracted from the books of Gatuni manufacturers as at 31st July, 2012.
Stock 1.8.11 Raw materials 13,550 Work in progress 6,500 Finished goods 12,800
Purchases and Expenses for year to 31st July,2012 Raw materials 237,650 Indirect materials 1,850 Direct wages 53,230 Factory power 4,550 Factory heating and lighting 1,975 Office heating and lighting 930 Printing and stationery 1,264 Postage and telephones 520 Factory salaries 11,500 Office salaries 9,900 Factory insurances 1,210 Depreciation Factory equipment and machinery 5,000 -Office equipments 650 Office expenses 1,680
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Advertising 850 Sales 378,150 Other transactions
1. Finished goods manufactured are transferred to warehouse at cost plus 10%
2. Stocks as at 31.7.12 Shs. Raw materials 24,000 Work in progress 7,987 Finished goods 18,050
3. Prepayments as at 31.7.12 Factory insurances 116 Other insurances 45
4. Accrued as at 31.7.12 Direct wages 1,342 Factory heating& lighting 197 Office 43 Factory power 350
Required: (a) Manufacturing Account for the year ended 31.7.12 ( 10 Marks) (b) Trading, Profit and Loss Account as at 31.7.12 ( 10 Marks)
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