Accounting
UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA
SPRING 2021 END-SEMESTER UNIVERSITY EXAMINATION
COURSE CODE: ACT 1010-D
COURSE TITLE: PRINCIPLES OF ACCOUNTING-I
EXAM DATE: 13 – 04 – 2021
DAY: TUESDAY
TIME: 07:20 PM – 09:20 PM
________________________________________________________________
INSTRUCTIONS:
Please attempt question one and any other two
Question one
The following is the trial balance was extracted from the books of Mr. Wambo, a sole trader as at 31 April 2020;
|
Particulars |
Dr. |
Cr. |
|
Capital (1 May 2019) Trade receivables Cash in hand Trade payables Fixtures and fittings at cost Discount allowed Discount received Inventory (1 May 2019) Sales Purchases Motor vehicles at cost Lighting and heating Motor vehicles running expenses Rent payable General expenses Bank overdraft Accumulated depreciation (1 May 2019): Fixture and fittings Motor vehicles Drawings
|
128,211 4,233
126,600 3,912
55,380
1,163,808 137,190 18,552 8,586 26,523 22,239
79,704 1,774,938 |
78,282
106,212
3,525
1,474,860
59,583
6,600 45,876
1,774,938 |
Additional information available at 30th April 2020:
i) Inventory was valued at Sh.59,778
ii) Depreciate motor vehicle at 20% straight line and fixtures and fittings at 10% reducing balance
iii) Accrued motor vehicles running expenses Sh.218
iv) Prepaid rent was Sh.680
Required:
a) Income Statement for the year ended 30th April 2020 (10 marks)
b) The Statement of Financial Position as at 30th April 2020 (10 marks)
Question two
At the beginning of the year 1 January, 2020, the balance brought forward from the previous year for the provision for doubtful debts in the books of A. Sonia was Sh.14,000. Following information was provided in regard to the year ended 31 December 2020;
Bad debts written off Sh.5,600
Debtors after bad debts written off Sh.360,000
Provision on debtors for doubtful debts 5%
Required:
a) The bad debts account for the year ended 31 December 2020 (2.5 marks)
b) The provision for doubtful debts account for the year (2.5 marks)
c) Extract from the income statement for the year (2.5 marks)
d) The extract from the balance sheet at the end of the year (2.5 marks)
Question three
The following information is taken from the bank column of the cash book and the bank statement respectively of Kyomuhendo Traders:
Cash Book
Bank Statement
|
Date 2020 May 1 4 7 8 11 13 14 15 |
Balance b/f Standing order B. Ndolo E. Mambo M. Njeri W. Hamisi Unpaid cheque – E. Mambo Rent receivable |
Debit Sh.
470 7,500
1,300
850 |
Credit Sh.
850
1,100
3,000 |
Balance Sh. 17,500 17,030 9,530 10,380 9,080 10,055 9,205 12,330 |
Required:
a) Updated cash book (5 marks)
b) A statement to reconcile the difference between the two balances (5 marks)
Question Four
A business firm purchased two machines on 1st January 2017 at a cost of Sh1,500,000 each. Each machine had an estimated useful life of five years and a nil residual value. The straight line method of depreciation is used. On 31st March 2019, one machine was sold for Sh.800,000. The second machine was sold on 1st December 2019 for Sh.250,000.
Required:
a) Machinery account (3 marks)
b) Provision for depreciation account for machinery (3 marks)
c) Disposal of machinery account (4 marks)