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
APRIL/MAY 2019 EXAMINATION
COURSE CODE: ACC757
CREDIT UNIT: 2
COURSE TITLE: PRINCIPLES OF ACCOUNTING
TIME ALLOWED: 2HRS
INSTRUCTIONS:
1. Attempt Question One (1) and any other two (2) questions
2. Question 1 carries 30 marks, while the other questions carry 20 marks each
3. Present all points in coherent and orderly manner
1a. Ahmad, Abdulrahman and Aliyu entered into Joint Venture for dealing in Baking materials. The transactions connected with this venture were:
2017
Nov 4 Ahmad rented shop, costing N2, 500,000.00
Nov 6 Abdulrahman supplied baking materials valued at N10, 500,000.00
Nov 10 Ahmad hired labour for baking N3, 700,000.00
Nov 13 Abdulrahman incurred carriage N1, 700,000.00
Nov 17 Ahmad hired labour for mixing baking materials N1, 850,000.00
Dec 21 Ahmad settled the following expenses: Sundries N1, 000,000.00 Labour N1, 800,000.00 Flour N2, 900,000.00
2018
Jan 15 Aliyu employed labour for off-loading materials N730, 000.00
Jan 19 Sales expenses settled by Aliyu N3, 900,000.00
Jan 31 Aliyu received cash from sales proceed N38, 980,000.00
Any amount outstanding between the venturers is settled by cheque on February 14.
Required: Show the joint venture account in the books of the venturers and the joint venture memorandum Account sharing profit or loss in the ratio Ahmad 7, Abdulrahman 3 and Aliyu 2. (15 marks)
1b. Mamman consigns 8 cartons of juice to Gwaggo his agent at Rimi gado at a value of N15,000 each during the Eid festival. Each carton contains 24 packs of juice. He insured the juice and paid insurance fee of N1, 500 and transport of N2, 500.Gwaggo paid insurance fees on receiving them of N2,000 and storage facilities fees of N3,000 and delivery charges of N500. By the end of the celebration on the 30th of June 2018, Gwaggo had sold 144 juices for N72, 000. She sent a cheque for the amount to Mamman after deducting her commission of 20%. You are required to prepare the appropriate account in the Books of Mamman.
(15 marks) Total 30 Marks
2a. In any partnership business, the Partnership Deed should contain all the points of agreement that would regulate the activities of the partnership. List any TWO (2) important points that a Partnership Deed should contain. (4 Marks)
(b) Omolola and Omolayo started a partnership business on 1st January, 2009. The following are extracts from their accounts for the year ended 31st December, 2009:
(i) Omolola and Omolayo were to contribute N1,000,000 each.
(ii) Omolola was to provide additional funds in form of loan for N400,000 which attracts 8% interest per annum.
(iii) Personal drawing for each of the partners was N100,000.
(iv) Drawings were to attract 10% interest charge per annum and capital 5% only.
(v) N10,000 salary was payable to each partner per month.
Other information was that the profit for the year was N400,000 and profits are shared equally.
You are required to prepare:
(i) The Appropriation Account (6Marks)
(ii) The Individual Partner’s Current Account (6Marks)
(iii) The individual partner’s Capital Account (2Marks)
(iv) The Loan Account. (2Marks) (Total 20Marks)
3. Mr Boy has kept records of his business transaction in a single entry form, but he did not realize that he had to record cash drawings. His Bank Account for the year 2014 was as follows:
Summary of Bank Account
N N
Balance 1/1/2014 1,890,000 Cash withdrawal from Bank 5,400,000
Receipt from Debtors 44,656,000 Trade Creditors 31,695,000
Loan from T. Ufor 2,000,000 Rent 2,750,000
Rates 1,316,000
Drawings 3,095,000
Sundry Expenses 1,642,000
Balance 31/12/2014 2,648,000
48,546,000 48,546,000
Records of cash paid were sundry expenses N122,000 Trade Creditors N642,000. Cash Sales amounted to N698,000. The following information is also available:
31/12/2013 31/12/2014
N N
Cash in hand 48,000 93,000
Trade Creditors 4,896,000 5,091,000
Debtors 6,013,000 7,132,000
Rent owing - 250,000
Rates in Advance 282,000 312,000
Motor Van (at valuation) 2,800,000 2,400,000
Stock 11,163,000 13,021,000
You are required to draw up:
(a) Statement of Affairs as at 31/12/2013 (5 Marks)
(b) Trading, Profit and Loss Account of Mr Boy for the year ended 31/12/2014 and Balance Sheet as at that date. (15 Marks)
(Total 20 Marks)
4. Oasis is a manufacturer. His trial balance at 31/12/2013 is as follows:
N N
Delivery Van Expenses 2,500
Lighting: Factory 2,859
Office 1,110
Manufacturing Wages 45,470
General Expenses: Office 3,816
Factory 5,640
Salesmen: Commission 7,860
Purchase of Raw Materials 39,054
Rent: Factory 4,800
Office 2,200
Machinery (cost N 50,000) 32,500
Office Equipment (cost N15,00 0) 11,000
Office Salaries 6,285
Debtors 28,370
Creditors 19,450
Bank 13,337
Sales 136,500
Premises at Cost 40,000
Stock at 31/12/2012:
Raw Materials 8,565
Finished Goods 29,480
Drawings 8,560
Capital 137,456
293,406 293,406
Give effect to the following adjustment:
(a) Stocks at 31/12/2013, Raw Materials N 9,050, Finished Goods N 31,200. There is no Work in Progress.
(b) Depreciation: Machinery N 2,000; Office Equipment N 1,500.
(c) Manufacturing Wages due but unpaid at 31/12/2013 N 305, Office Rent prepaid N 108.
You are required to prepare the Manufacturing, trading, profit and loss account of the company for the period 31st December, 2013 and Balance Sheet as at that date.
(20 Marks)
5a. A Bill of Exchange is evidence that the buyer is indebted to the seller according to the negotiable instrument Act 1882. Discuss, stating any five features. (15 Marks)
b. Chukason Groceries sells goods to Janet’s Outfit. Chukason draws a bill for N220,000 for one month ending on the 20th of September, 2017. This bill is payable to Nky and Co. You are to identify the drawer, drawee and payee in the above transaction. (5 Marks)
(Total 20 Marks)
