TUTORIAL SET
QUESTION ONE
The Dabi Golf Club prepares its accounts annually on 31st March. The Receipts and
Payments Account for the year ended 31st March 2016 was as follows.
Balance b/d
Subscriptions received
Competition receipts
Dinner dance ticket sales
GHȼ
2,900
70,800
12,000
13,000
Donations
Sale of equipment
1,000
25,000
Competition prizes
Groundkeepers’ wages
Dinner dance expenses
Insurance
Equipment purchases
General expenses
Electricity
Balance c/d
GHȼ
2,800
14,000
6,800
9,200
40,000
30,100
1,400
20,400
124,700
124,700
The following additional information is available:
i)
The remaining assets and liabilities of the Club at the beginning and end of the year were:
1st April 2015
GHȼ
Clubhouse
130,000
Equipment
140,000
Electricity owing
400
Subscriptions due and unpaid
2,500
Subscriptions paid in advance
6,200
Stock of competition prizes
ii)
iii)
600
31st March 2016
GHȼ
130,000
120,000
200
2,900
4,100
200
During the year equipment with a book value of GHȼ30,000 was sold for GHȼ25,000.
Of the subscriptions due on 1st April 2015, GHȼ 220 remains unpaid. This is to be treated
as an irrecoverable debt.
Required:
a) Calculate the Accumulated Fund on 1st April 2015.
(3 marks)
st
b) Prepare the Subscription Account for the year ended 31 March 2016. (4 marks)
c) Prepare:
i)
the Income and Expenditure Account for the year ended 31st March 2016
ii)
ii) Statement of Financial Position as at 31st March 2016.
(13 marks)
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QUESTION TWO
Mr. Patrick Mensah, a sole trader, has asked you to prepare the receivable and payable control
accounts and ensure that the closing balances match with the list of balances. Currently, the
closing balances as at 30 October 2017 are as follows:
GH¢
Receivables Control Account
126,845
Payables Control Account
103,240
Receivables list of balances
123,589
Payables list of balances
104,476
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•
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•
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•
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On investigation, the following have been discovered:
A contra entry of GH¢3,250 has not been included in either control account.
Bad debt of GH¢1,680 has been written off in the list of balances but has not been
included in the receivables control account.
The sales day book has been overstated by GH¢890 and this has not been reflected
in the control account.
Purchase returns to Taifa, a supplier of GH¢256 have not been reflected in the
control account.
An invoice amounting to GH¢981 for Obojo, a customer has been entered in the
sales day book as GH¢891.
A balance due to Amasaman, a supplier amounting to GH¢1,248 was not included
in the list of balances.
Payment received from Amrahia, a customer for GH¢2,864 was posted to a supplier
account Manhia mistakenly. The payment was correctly accounted for in the control
account.
Goods purchased from a supplier Kasoa amounting to GH¢3,126 have been omitted
from the relevant control account.
Bad debt recovered of GH¢300 relating to Tantra has not been updated in the list of
balances but has been included in the control account.
Required:
i) Based on the information provided above prepare the Receivables and Payables
Control
Accounts for the year-ended 30 October 2017.
(8 marks) ii)
Prepare a statement reconciling the list of balances with the revised control accounts for
Receivables and Payables for the year-ended 30 October 2017.
(2 marks)
QUESTION THREE
Makor, Degbe and Sesenyo were in partnership sharing profits one-half, one-third
and one sixth respectively.
2
On 1 January 2019 they admitted Asinyo into the partnership on the following
terms:
• Asinyo to have one-sixth share which he purchased from Makor, paying her
GH¢20,000 for that share of goodwill. Of this amount, Makor retained
GH¢15,000 and put the balance into the firm as additional capital. Asinyo also
brought GH¢12,500 capital into the firm.
• It was agreed that the investments should be reduced to their market value of
GH¢9,000 and that the plant should be reduced to GH¢14,500 as at 31
December 2018.
The Statement of Financial Position of the old firm as at 31 December 2018
was as follows:
GH¢
Non-Current Assets
Plant
17,500
Furniture
5,000
Investments
15,000
Current Assets
Inventory
Receivables
Bank
GH¢
37,500
25,000
30,000
20,000
75,000
Current Liabilities
Payables
52,500
Capital
Makor
Degbe
Sesenyo
22,500
60,000
30,000
20,000
10,000
60,000
Required:
i) Prepare the opening statement of financial position of the new firm as at 1
January 2019.
(6 marks)
ii) Prepare the capital accounts of the partners for the year to 31December 2018.
(6 marks)
(Total: 20 marks)
3
QUESTION FOUR
The following information relate to “God will Provide” Youth Club for the
accounting period of 2014.
GH¢
40,000
Subscription owing for 2014
Payable for End of Year Party
1,500
Payables for Repairs – Equipment
1,000
Payables for Repairs - Vehicle
2,000
Payments:
Vehicle running Expenses
6,000
Electricity Expenses
3,000
End of Year Party Expenses
10,000
Salaries and Wages
25,000
Printing and Stationery
3,000
Cleaning Expenses
6,000
Receipts:
Car Park Renting
10,000
Sales of Party Tickets
6,000
Donation from friends of the club
15,000
Subscription Received:
2013
6,000
2014
30,000
Additional Information are:
i.
ii.
Cash in hand as at 01/01/14
Subscription owing as at 01/01/14
iii.
Any subscription outstanding is written off in the following year
if it is not paid.
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18,000
8,000
You are required to prepare:
i.
Receipts and Payments Account for the year ended 31st December, 2014
(5 marks)
ii.
Subscription Account
(3 marks)
iii.
Income and Expenditure for the year ended 31st December, 2014
(7 marks)
QUESTION FIVE
Felicia, Jackson and Elizabeth are in Partnership Sharing Profits and Losses in
the ratio of 5:3:2 respectively. According to the Partnership Agreement,
Partners Capital Accounts attract an interest of 20% per annum. While
any Drawings by a Partner also attract 10% interest per annum.
The following understated Trial Balance has been extracted after the
preparation of the Profit and Loss Account for the period ending 31st
December, 2014.
DR
GH¢
Building
55,000
Furniture & Fittings
20,000
Motor Vehicles
45,000
Payables
CR
GH¢
25,000
Receivables
20,000
Cash at Bank
35,000
Stock (31st December, 2014)
20,000
DR
CR
GH¢
GH¢
Capital Account:
5
Felicia
50,000
Jackson
30,000
Elizabeth
20,000
Current Account:
Felicia
2,000
Jackson
5,000
Elizabeth
10,000
Loan-Elizabeth
20,000
Profit and Loss Account
63,000
210,000
The following entries have not been recorded in the books.
210,000
(i)
Salary of GH¢5,000 was paid to Elizabeth during the period.
(ii)
(iv)
Felicia personally paid General Expenses of GH¢2,500 on behalf of the
Partnership.
Cash Drawings made by partners: Felicia GH¢500, Jackson GH¢1,500 and
Elizabeth GH¢1,200.
Interest on loan – Elizabeth – GH¢2,000.
(v)
Jackson took goods worth of GH¢2,000 for personal use.
(vi)
Interest on Capital Account. All Capital Accounts were to remain fixed.
(iii)
You are required to prepare:
i.
ii.
iii.
Profit or Loss and Appropriation Account.
Partners’ Current Account.
Statement of Financial Position as at 31st December, 2014
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(7 marks)
(3 marks)
(5 marks)