MARKING GUIDE FOR SS1 FINANCIAL ACCOUNTING (THIRD TERM)

OBJECTIVES

1.A 11.B 21.BONUS 31.A 41.B

2.A 12.C 22.BONUS 32.A 42.A

3.C 13.D 23.B 33.B 43.C

4.B. 14.B 24.B 34.C 44.B

5.C 15.D 25.C 35.A 45.C

6.B 16.B 26.D 36.B 46.B

7.D 17.A 27.D 37.C 47.D

8.D 18.B 28.A 38.A. 48.A

9.B 19.D 29.D 39.BONUS 49.B

10.A 20.BONUS 30.A. 40.D 50.A

1a. Bamitolu

Dr Trading, Profit and Loss Account for the Year Ended 31st December,2009 Cr

# #

Opening stock 80,500 Sales(589,200-2,300) 586,900

Add purchases 395,700 Less returns inwards. 10,500

476,200

Less returns outwards. 9,700

466,500

Less goods withdrawn. 1,600

Cost of goods available for sale 464,900

Less closing stock 91,200

Cost of goods sold 373,700

Gross profit 202,700

576,400 576,400

Less expenses Gross profit b/d. 202,700

Discounts allowed. 12,500 Discount received 14,000

Wages and salaries. 49,200

Bad debts. 3,500

Loan interest 3,000

General expenses. 16,800

Stationery. 1,800

Rent and rates. 12,400

Provision for doubtful debts. 4,915

Depreciation:
Motor vehicle. 14,500

Building. 8,800

Furniture. 2,600

Net profit 86,685

216,700 216,700

WORKINGS

Provision for doubtful debts=5% × 98,300=4,915

Depreciation:

Motor vehicle = 25% × 58,000=14,500

Building. = 5% × 176,000 =8,800

Furniture & fittings= 10% × 26,000 =2,600

Debtors=98,300 -4,915 - 2,300 = 91,085

Drawings= 16,400 + 1,600 = 18,000

Bamitolu

Balance sheet as at 31st December,2009

# # cost depn. NBV

Capital. 250,000 Fixed Assets # # #

Add net profit 86,685 Motor vehicle 58,000 14,500 43,500

336,685 Building. 176,000 8,800 167,200

Less drawings 18,000 Furniture& fittings 26,000 2,600 23,400

316,685 234,100

Current Liabilities Current Assets

Loan. 60,000. Stock 91,200

Creditors. 72,000 132,000 Bank 32,600

Cash 1,300

Petty cash. 400

Debtors 91,085 216,585

450,685 450,685

2a.Depreciation is a wear and tear of an asset.It is a continuous decrease in the service

2b. Wear and tear depletion

Obsolescence

Passage of time

Inadequacy

2c. Straight line method

Diminishing/ reducing balance method

Sum of the year digit method

Amortization method

Insurance policy method

3a. Adjusted cash book

Le Le

Balance b/f. 4,500 Subscription 350

Dividend. 320 Bank charges 500

Undercast of balance 180 Electricity 70

Insurance. 100

Medical bills. 120

Balance c/d. 3,860

5,0005,000
3b.

Bank Reconciliation Statement as at 31st December,2014

Le

Balance as per adjusted cash book 3,860

Add unpresented cheque 4,800

8,660

Less uncredited cheque 1,990

Balance as per bank statement 6,670

4a. Bank reconciliation statement is a statement that is prepared in order to

uncredited cheque dividend

standing order dishonoured cheque

credit transfer bank charges

undercast/overcast of cash book balance

5.

Ade Enterprises

Dr Departmental Trading, Profit&Loss A/c for the Year Ended 31/3/99 Cr

A B C A B C

Opening stock 2,100 450 600 Sales 25,000 12,500 17,000

Add purchases 12,000 8,000 10,000

14,100 8,450 10,600

Less closing 500 940 680

13,600 7,510 9,920

Gross profit 11,400 4,990 7,080

25,000 12,500 17,000 25,000 12,500 17,000

Less Expenses Gross 11,400 4,990 7,080

Delivery 826 413 561 Discounts 2,000 1,333 1,667

Insurance 1,000 1,000 500

Salaries & 1,600 1,600 800

General 1,000 1,000 1,000

Advertisement 1,500 1,500 1,500

Net profit 5,794 ------ 3,546 Net loss -------- 870 --------

13,400 7,193 8,747 13,400 7,193 8,747

WORKINGS

Delivery expenses #1,800 Wages and salaries 4,000

Dept A 25,000/54,500 × 1,800=826. Dept A 6/15 × 4,000=1,600

Dept B 12,500/54,500 × 1,800=413 Dept B 6/15 × 4,000=1,600

Dept C 17,000/54,500 × 1,800=561 Dept C 3/15 × 4,000=800

Insurance #2,500 General expenses 3,000

Dept A 6/15 × 2,500=1,000. Each dept 3,000/3=1,000

Dept B 6/15 × 2,500=1,000 Advertisement 4,500

Dept C 3/15 × 2,500= 500 Each dept 4,500/3=1,500

Rent 4,200 Discount received 5,000

Dept A 6/15 × 4,200=1,680 Dept A 12,000/30,000 × 5,000

Dept B 6/15 × 4,200=1,680 Dept B 8,000/30,000 × 5,000

Dept C 3/15 × 4,200=840 Dept C 10,000/30,000 × 5,000