NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2021 EXAMINATION

COURSE CODE: ACC 407

CREDIT UNIT: 3

COURSE TITLE: ACCOUNTING AND AUDITING FO COOPERATIVES

TIME ALLOWED: 2 1/2 HOURS

NOTE: 1. To attempt question number one (1) and any other three

2. Question number 1 is compulsory and carries 25 marks, while the other questions carry 15 marks each

3. Present all your points in coherent and orderly manner

QUESTION ONE (COMPULSORY)

The list of balances of GREAT Co-operative Society of BENIN CITY transactions for the year ended 31st December, 2016 include the following:

QUESTION TWO

AGHO incorporated LASCO Limited on 1/6/16. He brought in cash of #14,000,000 into the business on 4/6/16. He offered the business building that valued #21,000,000. The amount on the building was to be taken as an additional capital. The business banked N12,250,000 on 5/6/16 and on 8/6/16, the Business furniture worth 350,000 from BAYO OJO and on 10/6/16, #280;000 cash was paid to BAYO OJO Required: Journalize the above transactions (15 Marks)

Provisions are expected to be made for the following items, which have not passed through the books of the Cooperative.

1. Outstanding contributions for 2015 amount to #28,800

2. 10% depreciation should be provided on Equipment.

3 Rent paid in Advance amounted to #19,200 You are required to prepare:

A) Income & Expenditure Account for the year ended 31st December, 2015.

B) Statement of Financial Position as at 31 December, 2015. (15 Marks)

QUESTION FOUR

(A) Accounting is neither an art nor a science. Discuss (5 Marks)

(B) Accounting Concepts are principles in accounting, modified by conventions, which have been adopted as a general guide to practice. These basic rules and procedures guiding the accounting profession are also known as Generally Accepted Accounting Principles (GAAP). Identify and discuss five accounting concepts known to you. (10 Marks)

QUESTION FIVE

(A) Outline four (3) each of the various sample reports in cooperative accounting classified under the following:

(1) Operational reports (3 Marks)

(2) General Ledger Reports (3 Marks)

(3) Subsidiary Ledger Reports (3 Marks)

(B) When a cooperative auditor is able to satisfactorily conclude that the financial statements and other cognate statements of the cooperative are free from material misstatements whether due to error or fraud, he expresses an unmodified opinion, otherwise, he will issue a modified audit report. Briefly discuss the three types of modified audit report. (6 Marks) (Total Marks = 9 + 6= 15 Marks)