Student Name:____________________
Student Number: __________________
Redo Coursework
Course Title
Course Code
Intake
Submission
:
:
:
:
Introduction to Accounting
ACT4025EF
2011/09
5 March 2012 (Monday)
Please submit IN-PERSON to Ms. Hui
Full-time Programme Office
3/F Lai King Learning Centre (OCLC)
This assignment has 3 pages (including this page).
Instructions to candidates :
1.
Please write down your name and student number in the spaces provided above.
2.
This assignment contains 2 questions. You are required to complete all 2 questions.
3.
The total mark is 100.
4.
All answers to questions must be in English.
5.
Submit your answers in person to Ms. Hui at 3/F, Lai King Learning Centre, 201-203 Lai
King Hill Road, Kwai Chung, N.T.
Question
1
2
Total:
1
Marks
/50
/50
/100
Question 1
Garry Company, a sole trader, received his bank statement for the year ended March 31
2010. At that date, the bank balance in the bank was $22,900 whereas the balance in
the cash book was $23,399.
He then checked the statement against its cash book and found the followings:
a) A standing order payment for rent of $672 had not been entered in his cash book.
b) Cheques drawn by Garry Company amounting to a total sum of $1,215 had not
been presented to the bank.
c) A credit transfer of $814 from C Company had not been entered in his cash book.
d) Garry Company had entered a payment of $470 to P Limited as $740 in his cash
book.
e) Bank charges of $46 had not been entered in his cash book.
f) The bank had not credited Garry Company with receipts of $2,186 paid into the
bank on March 31 2010.
g) A cheque for $520 from A Limited had been returned by the bank marked ‘refer to
drawer’ but this had not been recorded in his cash book.
h) Garry Company had omitted cash sales receipt amounting to $626 from his cash
book but they were shown on his banks statements.
Required:
a) Complete Garry Company’s cash book as at March 31 2010.
(30 marks)
b) Prepare a bank reconciliation statement commencing with the bank statement
balance.
(16 marks)
c) State briefly the main reason for preparing a bank reconciliation statement.
(4 marks)
(Total 50 marks)
2
Question 2
On January 1 2006, John Brown traders paid $9,200 for furniture and fittings for his
office. He depreciated these using the straight line method. He estimated that by the
end of 8 years, their residual (scrap) value would be $1,400.
On July 31 2006, he purchased a motor vehicle of $15,000 for his business. He decided
to depreciate it at the rate of 40% per annum using the reducing balance method.
In his accounting records, he retained the assets accounts at cost and dealt with the
related depreciation in the provision for depreciation account for each type of the assets.
The financial year ended on December 31 2006 and any assets purchased in the first 6
months of a year would have a full year’s depreciation written off. Any asset purchased
in the second half of the year has only a half-year’s depreciation to be charged to
income statement.
Required:
a. Prepare, for the year ended December 31 2006, 2007, 2008, 2009:
(i) Furniture and fittings account;
(ii) Provision for depreciation of furniture and fittings account;
(iii) Motor vehicles account;
(iv) Provision for depreciation of motor vehicles account.
(33 marks)
b. Show the balance sheet (extract) at December 31 2009 for both furniture and
fittings and motor vehicles.
(17 marks)
(Total 50 marks)
3