CONFIRM 2012 GCE FINANCIAL ACCOUNT OBJECTIVE AND THEORY ANSWER.

ACCOUNT OBJECTIVE.

1-10 ACBADABCDB
11-20 DCADCBDBDB
21-30 CCDDDCACAD
31-40 AAAADCDCAC
41-50CABCDDCAAA

ACCOUNT THEORY.

(1a) shares can be defined as the units of capital or ownership of a limited liabitity company. it is the division of the company’s ownership into numerous equal parts. i.e the in terest which a shareholder has in the conmpany.

(1b)
-payable by installment
-payable in full application
– payable re- issue of forfeited shares
-payable call in arreas

(1c)
-ordinary shares
-preferrence share

(3a)
-Donation
-subscrition
-Rent Recieved
-Profit on bar
-surplus.

(3b) Tabulate
Reciept and payments account:

i- only cash transactions are recorded
ii- it includes capital items
iii- balance represent cash in hand or bank overdraft

Income and Expenditure account:
i-it includes capital items
ii- balance represent surplus or deficiency
iii- there is adjustment of accurals and prepayments.

(9)

*(a) (G.p/turnover)*100= (150,000/600,000)* 100 = 25%
*(b) (N.p/turnover)*100 = (120,000/600,000)* 100 = 20%
*(c) current asset: current liability= 120,000 : 80,000= 12:8= 3:2
*(d) current asset. less stock: current liability
120,000- 20,000: 80,000 = 100,000: 80,000=10:8=5:4
*(e) cost of sales/ average stock
average stock = (opening + closing) stock/2
= (35,000+ 20000)/2= 55,000/2 = 27500
450,000/27500=16.36

(3a)
-Donation
-subscrition
-Rent Recieved
-Profit on bar
-surplus

(3b) Tabulate
Reciept and payments account:

*i- only cash transactions are recorded
*ii- it includes capital items
*iii- balance represent cash in hand or bank overdraft

Income and Expenditure account:
*i-it includes capital items
*ii- balance represent surplus or deficiency
*iii- there is adjustment of accurals and prepayments.

(8a)
IKECHUKWU LTD TRADING PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2010

Tabulate

debit side:

Opening stock: depta(3500), deptb(1500), deptc(2500)
Add purchases: depta(22000), deptb(11000), deptc(16500)
Add carriage inward: depta(700), deptb(467), deptc(933)
Total: depta(26,200), deptb(12967), deptc(19933)

Less closing stock: depta(600), deptb(3000), deptc(6000)
Gross profit: depta(20200), deptb(9,967), deptc(13933)
Total: depta(32500), deptb(20700), deptc(24100)

(8acontinues)
credit side:
depta(34000), deptb(21500), deptc(25000)
less return inward: depta(1500), deptb(800), deptc(900)
total: depta(32500), deptb(20700), deptc(24100)

gross profit: depta(12300), deptb(10,733), deptc(10,162)

(8b)

Tabulate

debit

Salaries: 1800,1200,2400
Wages: 8000,533,1067
Rent&rate: 500,333,667
Electricity: 900,600,1200
Discount allowed: 700,467,933
Insurance: 850,567,1133
Postage&stationary: 400,267,533
Advertising: 500,333,667
Carriage out: 600,400,800
Net profit: 5,250,6,033,762
12,300,10,733,10162

Credit side:
Gross profit: 12300,10733, 10,162
12300,10733,10162

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