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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
(a) You are preparing for a job interview as a risk manager. This requires you to make a ten-minute presentation on the functions and determinants of the efficiency of a risk manager.
Required:
Present an outline of your 10-minute presentation. (10 Marks)
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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
(b) The public sector is the driver of the economies of many developing nations. Public Finance Management has become a focus of attention in these economies. Development partners have therefore drawn the attention of governments to the Nolan Committee’s report on Standards in Public Life.
Required:
Discuss SIX of these principles for public office holders and show how they can enhance performance in the public sector. (6 Marks)
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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
a. The disposal of property, plant, and equipment (PPE) requires the determination of profit or loss on the asset and the subsequent de-recognition of affected assets.
Required:
State the double entries required to record the following events:
(7 Marks)
b. Davidsco Ventures Limited prepares its financial statements to December 31, each reporting year.
The company’s policy is to write off its plants at the rate of 10% per annum over a ten-year period.
During the year ended December 31, 2018, the company’s manufacturing plant register, in respect of three plants, is made available to you as follows:
| Plant | Acquisition Date | Amount (N’000) |
|---|---|---|
| Plant DV001 | July 01, 2016 | 1,200 |
| Plant DV002 | January 01, 2017 | 1,600 |
| Plant DV003 | October 01, 2018 | 900 |
The payments for the plants were made by cheque on the date of purchase.
The plant purchased in 2016 was sold on September 30, 2018 for N1,100,000.
The company charges depreciation on a time apportionment basis.
Required:
i. Prepare the plant account. (5 Marks)
ii. Prepare the provision for depreciation account. (5 Marks)
iii. Prepare the plant disposal account. (3 Marks)
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Three brothers; Wa, Zo, and Bia are in partnership, trading under the name and style WaZoBia. The partnership agreement provides for:
| % | N’000 |
|---|---|
| i. Annual commission payable to: | |
| – Wa | 4,000 |
| – Bia | 8,000 |
| ii. Annual salary payable to: | |
| – Wa | 5,000 |
| – Zo | 8,000 |
| iii. Interest on partners’ fixed capital | 5% |
| iv. Interest on partners’ drawings | 5% |
| v. Equal share of profit or loss (1:1:1) |
The extract of the partnership balances for the period under review is as follows:
| WaZoBia Trial Balance for the year ended October 31, 2019 | Debit (N’000) | Credit (N’000) |
|---|---|---|
| Partners’ capital as at November 1, 2018: | ||
| – Wa | 60,000 | |
| – Zo | 60,000 | |
| – Bia | 50,000 | |
| Partners’ drawings: | ||
| – Wa | 5,000 | |
| – Zo | 4,000 | |
| – Bia | 2,000 | |
| Gross profit for the year | 116,000 | |
| Trade receivables | 55,000 | |
| Trade payables | 27,560 | |
| Irrecoverable debt | 1,000 | |
| Utility | 8,600 | |
| Postage and communication | 3,200 | |
| Allowances for bad debt at November 1, 2018 | 6,000 | |
| Property, plant and machinery | 270,400 | |
| Staff cost | 18,360 | |
| Distribution cost | 5,000 | |
| Other income | 4,000 | |
| Finance cost | 1,000 | |
| 5% Loan notes | 50,000 | |
| Inventory at October 31, 2019 | 6,000 | |
| Accumulated depreciation on freehold properties | 16,720 | |
| Accumulated amortisation of leasehold property | 2,000 | |
| Rent and rates | 3,360 | |
| Cash and cash equivalent | 9,360 | |
| Total | 392,280 | 392,280 |
The following information is also relevant for the preparation of the financial statements:
Required:
a. Prepare the statement of profit or loss for the year ended October 31, 2019. (12 Marks)
b. Prepare the statement of financial position as at October 31, 2019. (8 Marks)
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a. The Chief Executive Officer (CEO) of Favourite Gift Shop buys and sells gift items to both individuals and organisations. The CEO has close personal relationships with her business partners and knows the amount owed to her suppliers.
In a recent meeting held between the CEO and the Auditor, the Auditor brought up the issue of the unavoidable need for the business to maintain the relevant control accounts. The CEO is seriously considering adhering to the auditor’s recommendation but needs further clarification on the issue.
Required:
i. Differentiate between receivables control account and payables control account. (2 Marks)
ii. Highlight FOUR uses of control accounts. (4 Marks)
b. The following information is extracted from the books of Favourite Gift Shop for October 1, 2019:
| Transaction | Debit | Credit |
|---|---|---|
| Sales Ledger Balance | N7,200 (debit) | N45 (credit) |
| Bought Ledger Balance | N100 (debit) | N2,910 (credit) |
| Sales Day Book Total | N105,540 | |
| Purchases Day Book Total | N94,150 | |
| Returns Inwards | N4,710 | |
| Bank Draft Received | N13,500 | |
| Cheques Payment to Suppliers | N82,000 | |
| Cheques Returned | N3,750 | |
| Bad Debts Written Off | N3,200 | |
| Cash Sales | N180 | |
| Discount Allowed | N1,350 | |
| Discount Received | N2,835 | |
| Returns Outwards Day Book | X | |
| Purchases Ledger Contra | N780 | |
| Petty Cash Paid to Suppliers | N100 | |
| Drafts Issued to Suppliers | N6,450 | |
| Debit Balance in Sales Ledger Transferred to Purchases Ledger | N780 | |
| Discount Withdrawn by Suppliers | N435 | |
| SMS Alerts for Cheques Received from Customers | N42,500 | |
| Discount Disallowed | N450 | |
| October 31, 2019 Sales Ledger Balance | N24,765 (debit) | N290 (credit) |
| October 31, 2019 Bought Ledger Balance | N114 (debit) | N4,260 (credit) |
Required:
i. Prepare the sales ledger control account for the period. (7 Marks)
ii. Prepare the purchases ledger control account for the period. (7 Marks)
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a)
The accounts clerk of Jide Electronics is unsure of the difference between a bank statement and a bank reconciliation statement and has asked for your assistance in this direction.
Required: Explain the difference between a bank statement and a bank reconciliation statement. (2 Marks)
b)
She has provided you with the following summary of banking transactions for the period under review:
Required:
i. Prepare the adjusted cash book. (11 Marks)
ii. Starting with the balance as per bank statement, prepare the bank reconciliation statement for the month ended September 30, 2019. (7 Marks)
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c. Ahmed Ventures Ltd acquired an item of plant from Judexco Machine Ltd to facilitate its operations.
The schedule of expenditure for the plant is given below:
| Expenditure Item | N’000 | % |
|---|---|---|
| Purchase price | 480,000 | 100% |
| Trade discount applicable to the purchase price | 8% | |
| Early settlement discount on the payable amount | 5% | |
| Freight charges | 25,000 | |
| Pre-production testing cost | 15,000 | |
| One-year maintenance contract | 12,000 | |
| Staff cost in relation to the use of the machine | 8,000 | |
| Electrical installation cost | 19,000 | |
| Concrete reinforcement | 9,000 | |
| Cost of correcting installation error | 17,000 | |
| Dismantling and restoration cost | 20,000 | |
| Staff training in the use of the plant | 14,000 |
Required:
Using the format provided below, classify the above plant costs into capital and revenue expenditure respectively. (14 Marks)
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a. Explain the requirements of IAS 16 on the initial recognition of Property, Plant, and Equipment (PPE).
(3 Marks)
b. After the acquisition of an item of PPE, an entity continues to incur subsequent expenditure on the item.
Required:
Explain briefly the requirements of IAS 16 in relation to subsequent expenditure and subsequent measurement. (3 Marks)
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Question:
c. Using the following list of balances extracted from the ledger accounts of John Thomas Enterprises, the MD/CEO wants you to confirm if the various double entries passed by the newly employed accounts officer were arithmetically correct:
| Description | N’000 |
|---|---|
| Revenue | 53,000 |
| Purchases | 32,200 |
| Property, Plant, and Equipment (Cost) | 59,000 |
| Accumulated Depreciation | 25,000 |
| Inventory as at July 1, 2018 | 7,800 |
| Interest Expense | 200 |
| Administrative Expenses | 7,000 |
| Accrued Expenses | 400 |
| Distribution Cost | 8,900 |
| Retained Earnings | 23,500 |
| Bank Overdraft | 1,000 |
| Cash and Cash Equivalent | 200 |
| Accounts Receivables | 9,000 |
| Finance Cost | 1,000 |
| 5% Loan Note | 5,000 |
| Share Capital | 10,000 |
| Other Components of Equity (OCE) | 5,000 |
| Accounts Payables | 2,400 |
Required:
Extract a trial balance for the period ended June 30, 2019. (10 Marks)
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b. The balancing of a trial balance does not necessarily mean that such trial balance is error-free.
Required:
Using a two-column tabular format, highlight FOUR errors that do not affect the trial balance and FOUR errors that affect the trial balance. (8 Marks)
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