[quote auth3or=Ambitionuwem link=topic=76849.msg143206#msg143206 date=1492591434]
good morning sir God bless you abundantly as you continue to help us
[/quote]
Acc-OBJ
1-10 ABBCCBACCA
11-20 CCACCACCAB
21--30CACBCCABBD
31-40BCCDADDBBD
41-50 DBABAABBDC
1a)
Source document : this is the original record containing the details to substantiate a transaction entered in an accounting system.
1b)
-Cash memo
-Receipt
-Credit note
-Pay in slip
-Cheque
-Debit note
1c)
- Purchase Book;which is used to record all the credit purchases
- Sales Book,which is used to record all the credit sales
- Purchase Return book: which is used to record all goods returned by business to the supplier
2a.
A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts.
2b.
- to detect any errors that has occurred in the double entry accounting system
- it helps in the preparation of financial statements
2c
1. Errors of Principle:
An error of principle is an error which violates the fundamentals of book-keeping. For instance, purchase of furniture is debited to Purchase Account, instead of Furniture Account; Wages paid for the
**** of plant is debited to Wages Account, instead of Plant Account; the amount spent on extension of building is debited to Repairs Account instead of Building Account etc. These types of errors do not affect the total debits and total credits but affect the principle of book-keeping.
2. Errors of Omission:
If a transaction is completely omitted, there will be no effect on the Trial Balance. When a transaction goes completely unrecorded in both aspects or a transaction after being recorded in the books of primary entry is not at all posted in the ledger, the error is an error of omission. For instance, if a credit purchase is omitted to be recorded in the Purchase Day Book, then it will be omitted to be posted both in the Purchase Account and the Supplier’s Account. This error will not, however, result in the disagreement of Trial Balance.
3. Posting to Wrong Account:
Posting an item to wrong account, but on the correct side. For instance, if a purchase of Rs 200 from Ramu has been credited to Raman, instead of Ramu and this error will not affect the agreement of Trial Balance. Thus, Trial Balance will not detect such an error.
4. Error of Amounts in Original Book:
If an invoice for Rs 632 is entered in Sales Book as Rs 623, the Trial Balance will come out correctly, since the debit and credit have been recorded as Rs 623. The arithmetical accuracy is there, but in fact there is an error.
3ai)
Accumulated fund:This is the funds that correspond to the capital of the partnership or sole trader and it will be calculated using the statement of affairs
3aii)
Subscription in arrears:This is the sum of money due for members but remained unpaid.It is treated as debtors in the balance sheet
3aiii)
Reciepts and payments:this is the accounts that shows the summary of a cash book over a particular period of time
3aiv)
Income and expenditure account:This is type of account being prepared based on the same principle as the profit and loss accounts.It is described as the equivalent of profit and loss account
3av)
Entrance fees:This is the money paid on application for membership of an association or club.It is normally treated as income in income and expenditure account
3b)
A share is defined as that portion of the joint stock companies capital owned by a share holder while debentures are documents in form of borrowing (eg bond issued under the seal of company in respect of money lent to it) on which the company agree to pay a certain fixed rate of interest.
3b) Materiality:
An important convention. As we can see from the application of accounting standards and accounting policies, the preparation of accounts involves a high degree of judgement. Where decisions are required about the appropriateness of a particular accounting judgement, the "materiality" convention suggests that this should only be an issue if the judgement is "significant" or "material" to a user of the accounts. The concept of "materiality" is an important issue for auditors of financial accounts.
(4a)
Depreciation is the measure of the wearing out, consumption or other loss of value of a fixed asset whether arising from use, effluxion of time or obsolescence through technology and market changes
(4b)
I. Physical deterioration
ii. Obsolescence
iii. The time factor
iv. Economic factor
v. Inadequacy
Reasons to prepare BRS
1)To detect items not entered and errors in the cash book. To ensure that the cash book entries are complete.
2) Items missing from the cash book will not have been recorded in other ledger accounts and the business records will be unreliabl
3a) It is not a legally binding practice; rather, it is a generally accepted convention based on customs and designed to help accountants overcome practical problems that arise out of the preparation of financial statements.
(6)
MANUFACTURING TRADING PROFIT AND LOSS A/C FOR THE YEAR END 31/12/2014
DEBIT SIDE:(Le)
Stock:56000
Purchases:150000
=206000
Add carriage inwards:7500
=213500
Add direct expenses:11400
=224900
Less closing stock:40000
=184900
Wages(16500)
Add acrrued(4000)
=20500
Prime cost:205400
Overheads Exp:
fuel:15000
Dept. Equip:12000
=27000
Add WIP @start:60000
=87000
Less WIP @ end:64000
=23000
less Gross profit on manufactured goods:22840
Market value=251240
Stock F.G:80000
Add Market value:251240
=331240
Less stock F.G:72000
=259240
240760
=500000
Carriage out:7600
Office expenses:3800
Salaries:19200
Net profit:233000
=263600
CREDIT SIDE:(Le)
Market value:21240
=251240
Sales:500000
=500000
G.p b/d:240760
G.P on manufactured:22840
=263600
5a)
tabulate
journal entries
details
i)suspens A/c
salako's A/C
being an omission in salako's A/C
DR(&) 1,000
CR(&) 1,000
ii)suspense A/C
sale A/C
being an undercast in the sales A/C
DR(&) 560
CR(&) 560
iii)Return outward A/C
suspense A/C
being overstatement in the account
DR(&) 140
CR(&) 140
iv)suspense A/C
damilola's A/C
being omission in the account
DR(&) 410
CR(&) 410
v)supplier's A/C
suspense A/C
being Wrong figure in the supplier account
DR(&) 180
CR(&) 180
vi)suspense A/C
discount allowed
being overstatement
DR(&) 310
CR(&) 310
vii)discount received A/C
suspense A/C
being an overstatement
DR(&) 400
CR(&) 400
5b)
tabulate
suspense A/C
salako 1000 $
sale 560
damilola 410
discount allowed 310/2,280
balance % 1,560
tabulate
return outward $140
supplier 180
discount allowed 410
balance % 1560/2,280
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April 05, 2017, 04:38:14 pm
