Monday, March 7, 2022

REVISION QUESTIONS ON FINAL ACCOUNT AND BANK RECONCILIATION STATEMENT

 

TOPIC 1: FINAL ACCOUNTS

1. The following Trial Balance was extracted from the books of Odebeodero

 

  Nigeria Limited on 31st December, 2021.



 


 DR

 CR


 


 N

 N


 

 Premises

              150,000



 

 Motor Vans

                27,810



 

 Capital 1st January, 2021


            483,720


 

 Advertising

                  3,810



 

 Postage

                  4,140



 

 Purchases 

           2,054,550



 

 Electricity

                  2,730



 

 Salaries

                85,110



 

 Tenement Rate

                  3,030



 

 Telephone

                  1,020



 

 Furniture

                33,120



 

 Sales


         2,204,940


 

 Returns

                  1,680

              11,760


 

 Bad Debts

                     780



 

 Insurance

                  5,760



 

 Commissions received


              52,500


 

 Debtors

              146,460



 

 Creditors


            252,150


 

 Cash in hand

                10,560



 

 Bank

              113,760



 

 Stock 1st January, 2021

              360,750



 


           3,005,070

         3,005,070


 





 

 Additional information is as follows:



 

 i.  The stock at 31st December, 2021 was N323,610



 

 ii. Depreciation to be written off as follows:



 

     Premises at 5 percent




 

     6,000 of value of motor vans




 

     10 percent off furniture




 

 iii.  Prepaid rate N450, outstanding telephone N660, provide N9,000 for bad and doubtful debts.

 Required:




 

 (a) Prepare Trading, Profit or Loss account for the year ended 31st December, 2021.

 (b) Statement of Financial Position as at that date.



 

 

2. The following Trial Balance was extracted from the books of Koduro Nigeria Limited on 31st December, 2021.


 DR

 CR

 


 N

 N

 

 Premises

52,500


 

 Motor Vans

9,734


 

 Capital 1st January, 2021


169,305

 

 Advertising

1,334


 

 Postage

1,449


 

 Purchases 

719,093


 

 Electricity

956


 

 Salaries

29,789


 

 Tenement Rate

1,061


 

 Telephone

357


 

 Furniture

11,592


 

 Sales


771,729

 

 Returns

588

4,116

 

 Bad Debts

273


 

 Insurance

2,016


 

 Commissions received


18,375

 

 Debtors

51,261


 

 Creditors


88,253

 

 Cash in hand

3,696


 

 Bank

39,816


 

 Stock 1st January, 2021

126,263


 


1,051,778

1,051,778

 

Additional information is as follows:

 i.  The stock at 31st December, 2021 was N113,264

 ii. Depreciation to be written off as follows:

     Premises at 5 percent


     2,100 of value of motor vans

     10 percent off furniture


 iii.  Prepaid rate N158, outstanding telephone N231, provide N3,150 for bad and doubtful debts.

 Required:


 (a) Prepare Trading, Profit or Loss account for the year ended 31st December, 2021.

 (b) Statement of Financial Position as at that date.






 

TOPIC 2: BANK RECONCILIATION STATEMENT

 

1. (a) Define Bank Reconciliation Statement and state the causes of bank reconciliation

         statement.

    (b) On 31st December 2021, Foyegbe cash book showed a debit balance of N29,520.

          His bank statement showed a credit balance of N25,260.

          The reasons for the difference were follow:

i.                    A cheque of N1,960 was received and entered in the cash book but was not recorded in the bank statement.

ii.                  Unpresented cheques totalled N3,740.

iii.                The payment side of the cash book had been undercasted by N2,000.

iv.                Standing order for N1,260 appearing in the bank statement was yet to be posted in the cash book.

v.                  A bill of exchange of N1,340 had matured and the bank had paid on Olowonishaye`s  behalf but it had not been recorded in the cash book.

vi.                A withdrawal of N1,440 by Sogbae, another customer of the bank had been charged in error to Foyegbe account.

You are required to prepare:

           i.     Adjusted cash book

           ii.    Bank Reconciliation Statement.

 

2.  Ajimatanraeje Nigeria Limited has the following transactions in its cashbook and bank statements for January 2022.

 

CASHBOOK

 

 

Lodgements:

N

Payments:

N

 

CHQ. 6789

28,000

CHQ. 123456

8,000

 

CHQ. 4591

24,000

CHQ.123457

12,000

 

CHQ. 4826

19,000

CHQ. 123458

15,000

 

CHQ. 4725

38,000

CHQ. 123459

25,000

 

CHQ.4228

18,000

CHQ. 123460

16,000

 

Cash

132,000

CHQ. 123461

3,000

 



Balance C/d

180,000

 


259,000

 

259,000

 

Balance B/d

180,000

 


 

 

BANK STATEMENT



DR

N

CR

N

BALANCE

N

CHQ.123459

25,000


25,000

CHQ. 123458

15,000


40,000

CHQ. 4826


19,000

21,000

CHQ. 6789


28,000

7,000

CHQ. 123460

16,000


9,000

CHQ.4826 CONTRA

19,000


28,000

ICAN

500


28,500

COT

1,000


29,500

Commission

3,500


33,000

CHQ. 4228


18,000

15,000

CHQ. 123457

12,000


27,000

Cash


132,000

105,000









You are required to:

(a)     Prepare an adjusted cash book

(b)    Reconcile the adjusted cash book balance with the bank statement.

 

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