TOPIC 1: FINAL ACCOUNTS
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1. The following Trial Balance was extracted from the books of Odebeodero |
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Nigeria Limited on 31st December, 2021. |
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DR |
CR |
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N |
N |
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Premises |
150,000 |
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Motor Vans |
27,810 |
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Capital 1st January, 2021 |
483,720 |
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Advertising |
3,810 |
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Postage |
4,140 |
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Purchases |
2,054,550 |
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Electricity |
2,730 |
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Salaries |
85,110 |
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Tenement Rate |
3,030 |
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Telephone |
1,020 |
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Furniture |
33,120 |
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Sales |
2,204,940 |
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Returns |
1,680 |
11,760 |
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Bad Debts |
780 |
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Insurance |
5,760 |
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Commissions received |
52,500 |
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Debtors |
146,460 |
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Creditors |
252,150 |
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Cash in hand |
10,560 |
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Bank |
113,760 |
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Stock 1st January, 2021 |
360,750 |
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3,005,070 |
3,005,070 |
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Additional information is as follows: |
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i. The stock at 31st December, 2021 was N323,610 |
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ii. Depreciation to be written off as follows: |
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Premises at 5 percent |
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6,000 of value of motor vans |
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10 percent off furniture |
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iii. Prepaid rate N450, outstanding telephone N660, provide N9,000 for bad and doubtful debts. |
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Required: |
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(a) Prepare Trading, Profit or Loss account for the year ended 31st December, 2021. |
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(b) Statement of Financial Position as at that date. |
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2. The following Trial Balance was extracted from the books of Koduro Nigeria Limited on 31st December, 2021.
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DR |
CR |
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N |
N |
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Premises |
52,500 |
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Motor Vans |
9,734 |
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Capital 1st January, 2021 |
169,305 |
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Advertising |
1,334 |
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Postage |
1,449 |
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Purchases |
719,093 |
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Electricity |
956 |
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Salaries |
29,789 |
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Tenement Rate |
1,061 |
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Telephone |
357 |
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Furniture |
11,592 |
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Sales |
771,729 |
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Returns |
588 |
4,116 |
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Bad Debts |
273 |
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Insurance |
2,016 |
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Commissions received |
18,375 |
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Debtors |
51,261 |
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Creditors |
88,253 |
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Cash in hand |
3,696 |
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Bank |
39,816 |
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Stock 1st January, 2021 |
126,263 |
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1,051,778 |
1,051,778 |
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Additional information is as follows: |
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i. The stock at 31st December, 2021 was N113,264 |
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ii. Depreciation to be written off as follows: |
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Premises at 5 percent |
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2,100 of value of motor vans |
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10 percent off furniture |
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iii. Prepaid rate N158, outstanding telephone N231, provide N3,150 for bad and doubtful debts. |
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Required: |
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(a) Prepare Trading, Profit or Loss account for the year ended 31st December, 2021. |
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(b) Statement of Financial Position as at that date. |
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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.
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CASHBOOK |
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Lodgements: |
N |
Payments: |
N |
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CHQ. 6789 |
28,000 |
CHQ. 123456 |
8,000 |
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CHQ. 4591 |
24,000 |
CHQ.123457 |
12,000 |
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CHQ. 4826 |
19,000 |
CHQ. 123458 |
15,000 |
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CHQ. 4725 |
38,000 |
CHQ. 123459 |
25,000 |
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CHQ.4228 |
18,000 |
CHQ. 123460 |
16,000 |
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Cash |
132,000 |
CHQ. 123461 |
3,000 |
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Balance C/d |
180,000 |
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259,000 |
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259,000 |
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Balance B/d |
180,000 |
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BANK STATEMENT |
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DR N |
CR N |
BALANCE N |
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CHQ.123459 |
25,000 |
25,000 |
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CHQ. 123458 |
15,000 |
40,000 |
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CHQ. 4826 |
19,000 |
21,000 |
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CHQ. 6789 |
28,000 |
7,000 |
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CHQ. 123460 |
16,000 |
9,000 |
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CHQ.4826 CONTRA |
19,000 |
28,000 |
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ICAN |
500 |
28,500 |
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COT |
1,000 |
29,500 |
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Commission |
3,500 |
33,000 |
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CHQ. 4228 |
18,000 |
15,000 |
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CHQ. 123457 |
12,000 |
27,000 |
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Cash |
132,000 |
105,000 |
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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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OTHER VITAL INFORMATION, CLICK:
https://britstutors.blogspot.com/2018/11/financial-statements.html
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NICE MEETING YOU GUYS:
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EXECUTIVE TRAINING ON SAGE ACCOUNTING
https://britstutors.blogspot.com/2018/10/executive-training-on-sage-peachtree.html
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LECTURER-IN CHARGE: PATRIOT ODUNARO BABATUNDE JIMOH
