How to login to NOUN Elearn Portal
You can now use you matric number to login as your username and password in a lowercase.
https://elearn.nouedu2.net/login/
Note that you are to change your passw...
NATIONAL OPEN UNIVERSITY OF NIGERIA
UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
MARCH 2015 EXAMINATION
COURSE CODE: ACC419 CREDIT UNIT: 3
COURSE TITLE: FINANCIAL ACCOUNTING
TIME ALLOWED: 2 ½ HRS
INSTRUCTIONS: 1. Attempt question Number one (1) and any other three (3).
2. Question number 1 is compulsory and carries 25marks, while the other three questions carry 15marks each
3. Present all points in a coherent and orderly manner
- Uyi Technicals has authorised and issued share capital of N200 million, made up of 400 million ordinary shares of 50 kobo each. The following is the company’s trial balance as at 30 April 2008.
|
PARTICULARS |
DR N’000 |
CR N’000 |
|
Freehold land Short term deposits Sundry debtors Cash and bank Furniture and fitting-cost Accumulated depreciation |
25,000 50,000 60,820 50,862 44,720 |
11,180 |
|
Machinery and equipment-cost Accumulated depreciation Stock at 1 may 2003 Sundry creditors Bank overdraft Wages Postages and telephone General expenses Bad debts written off Auditors remuneration Distribution expenses Insurance Bank interest paid and received Electricity Salaries (including directors remuneration N2m) Rates Purchases Sales Dividends(interim) Profit and loss account Share capital |
164,000
27,160
97,280 2,100 6,060 560 2,000 2,140 2,060 4,100
3,800 76,850
1,580 306,832
24,000
951,924 |
32,800
39,420 25,000
1,000
640,124
2,400 200,000 951,924 |
The following adjustments are necessary for the year ended 30/4/2008:
(a) The directors recommended that 5% of debtors should be set aside for possible bad debt.
(b) Stock w as valued at N28,648,000 as at 30 April, 2008.
(c) W ages outstanding at 30 April, 2008 amounted to N 2,400,000 and electricity accrued w as N280,000.
(d) Depreciation is to be written off machinery and equipment at 10% per annum and Furniture and Fittings at 5% per annum.
(e) The Sales Manager is entitled to sales commission of 2% of gross profit. The commission is payable on 1 May, 2008.
(f) Insurance has been paid in advance amounting to N 285,000.
(g) Machinery which stood in the books at 1 May, 2007 at N 8million has been sold for N6 million in part exchange for a new machinery costing N 12 million. A net invoice for N6 million has been posted into the Purchases account. No other entry has been made in respect of this transaction. The original cost of the old machinery was N 10million. It is the company’s policy to charge a full year’s depreciation in the year of purchase and none in the year of sale.
(h) The Directors proposed a final dividend of 8%, making a total of 20% dividend in respect of the year to 30 April, 2008.
(i) Provision for company income tax was N 35million.
Required: Prepare the profit and loss account for the year ended 30 April, 2008 and balance sheet as at 30 April, 2008 in a form suitable for publication. Notes to the accounts are not required but show your workings.
2. a) Highlight five purposes of the conceptual framework for the preparation and presentation of financial statements by the International Financial Standards Board (IFSB).
b) What is the scope of the conceptual framework?
3. Below is the profit and loss account of SALEH plc, a manufacturing company, for the year ended 31 December 2008, together with its comparative figures.
2008 2007
N’000 N’000
Turnover 8,074,458 5,201,750
Cost of sales (5,015,397) (3,021,246)
Gross profit 3,059,061 2,180,513
Distribution costs (520,162) (364,475)
Administration expenses 1,366,742 (681,787)
Trading profit 1,172,157 1,134,251
Interest payable (net) (386,079) (235,739)
Profit before exceptional items and taxation 786,078 898,512
Exceptional items 113,169 -
672,909 898,512
Taxation (314,138) (335,520)
Profit after taxation 358, 771 562,992
Proposed dividend (351,000) (234,000)
Retained profit 7,771 328,992
|
The following notes are relevant:
2008 2007 Land & Building 34,982 314,479 Plant, machinery & vehicle 17,117 21,041 Goodwill & Patents 262,039 - 314,138 335,520
Required: Prepare the statement of Value added of the company for the year ended 31 December, 2008 as it will appear in its published financial statements.
4 AHMED Ltd decided to issue 1,000,000 shares of N 1.00 each at par, 10kobo payable on application, 40kobo on allotment and 50kobo on first and final call. OKAFOR Ltd, a finance company, agrees to underwrite the whole issue, at a commission of 2.5% and to apply firm for 200,000 shares. OKAFOR Ltd arranged with ADU Ltd that they sub-underwrite 25% of the shares for a commission of 2%. The public applies for and was allotted 400,000 shares and OKAFOR Ltd w as allotted the firm’s application for 200,000 shares.
OKAFOR Ltd had deposited cheque designed for the application money on shares underwritten and ADU Ltd in turn, had deposited the relevant cheques and which cleared when the result of the issue became known and commission due was paid. After allotment and before final payment, OKAFOR Ltd sold 100,000 shares at 45k each, having made the final payment. OKAFOR Ltd then sold 250,000 shares at 110k each. At the end of the financial year of OKAFOR Ltd, shares of AHMED Ltd were valued at 120k each. Required: Prepare the Underwriting Account of OKAFOR Ltd reflecting the above transactions.
5) EMU CO-OPERATIVE THRIFT AND CREDIT SOCIETY LIMITED TRIAL BALANCE AS AT 31 DECEMBER 2014 IS AS FOLLOWS
|
