SECTION l

Answer the THREE questions in this section.

1. The following had been extracted from the books of Allert and Wildman who have been in
partnership as manufactures for several years.
Partners' apital Account at !anuary 1" #$$%&
'
Allert 1#$ $$$
Wildman %$ $$$
Partners' urrent Account at !anuary 1 " #$$%
Allert ( $$$
Wildman )*$$+
Partners' ,rawings for the year ended ,ecember *1" #$$%
Allert - $$$
Wildman . %$$
/et profit for the year ended ,ecember . *1 #$$% & '-# ($$
The partnership agreement between Allert and Wildman provides for the following&
1. Partners are to receive interest at a rate of 1$0 per annum on their opening capital
account balances.
#. 1nterest at a rate of (0 per annum is to be paid on partners' drawings during the year.
*. Wildman is to receive a partnership salary of '1 $$$ per month.
.. The balance of the net profit or loss is to be shared between partners in proportion to
their capital accounts' balances.
2e3uired &
)a+ Prepare the partnership Profit and 4oss Appropriation account for the year ended
,ecember *1 " #$$% ) % marks +
)b+ Prepare the urrent Account for the partnership as at ,ecember *1 #$$%. ) 1$ marks +
)c+ 5tate 6/7 disadvantage of being a general partnership. ) 1 mark +
)d+ alculate the amount of the net profit due to 7A8 partner based on the principles of the
partnership Act of 1%9$. ) 1 mark +
Total 20 marks
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#. )a+ 5tate whether the following statements about accounting are True )T+ or ;alse );+
i. Accounting records business activities that cause changes in money value.
ii. Accounting reports are useful for good decision<making.
iii. :overnment tax agencies use accounting information to compute taxes.
iv. Accounting can ensure that profits are made.
v. =usiness 3ualities such as reliability and good services can be accounted for.
) ( >arks +
)b+ At the end of /ovember #$$-" 2ennie !oseph used the :eneral !ournal on to make
entries for the following transactions.
1. 2ecorded '#$$ as provision for depreciation on blenders for the month.
#. 2ecorded '1($ as prepaid electricity expense.
*. 2ecorded '#1$ as commissions earned but not yet received.
.. 2ecorded '1 $$( as a bad debt on the account of >eera Taylor.
(. 5old an ice crusher for '.*$ to Walter ?avier who paid by che3ue.
i. 1ndicate which of the above transaction wound normally be entered in another
book of original entry.
) 1 mark +
ii. Prepare the :eneral !ournal of 2ennie !oseph as at /ovember *$ " #$$-
) 1$ marks +
)c+ 6ver the next sis months" 2ennie !oseph incurred the following payments by debit card&
'
,ecember 1" #$$- 2ates prepaid bought forward #$$
!anuary 1" #$$% @uarter yearAs rates paid by che3ue B$$
>arch *1" #$$% 8alf year's rates paid 1 #$$
Prepare the rates Account in the books of 2ennie !oseph for the six<month period
ending >ay *1" #$$%" showing the amount to be transferred to the Profit and 4oss
Account.
) . marks +
Total 20 marks
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*. 4 >arcus is a grocer who has not kept proper books of accounts. 8is accountant has found the
following details of transactions for the business for the year ending ,ecember *1 #$$%.
1. All sales were made on a credit sales basis. 8is cash book shows that '-( $$$
was received from persons to whom goods have been sold.
#. The amount paid to suppliers during the year was '(* $$$.
*. 8is bank account showed the following expenses paid by che3ue& rent '( $$$C
general expenses '# ($$C and wages '1$ ($$.
.. The only fixed asset of the business was office furniture valued on !anuary 1"
#$$% at '# ($$. this is to be depreciated at 1$0 per annum.
(. 6ther information available&
!anuary 1" #$$% ,ecember *1" #$$%
' '
,ebtors 1 ($$ 1 9$$
reditors for goods # .$$ B ($$
1nventories 9 %(( 11 #.9
2ent prepaid < 1 #($
=ank 1# ($$ B ($$
ash B$$ *$
2e3uired&
)a+ Prepare 4. >arcus' 5tatement of Affairs as at !anuary 1 " #$$%
)B marks +
)b+ alculate by means of statements or accounts&
)1+ Purchases for the year
)11+ 5ales for the year ) Bmarks +
)c+ Prepare 4 >arcus' Trading and Profit and 4oss Account for the year ended
,ecember *1" #$$% ) %marks +
Total 20 marks
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SECTION ll
Answer any Two questions in this section.
.. 4ipset 7nterprise is a manufacturer of concrete garden benches. ;or the year ending !une *$
#$$%" the enterprise produced 1 $$$ benches. The following information relates to the
manufacturing operations for the period&
'
1nventory at >ay 1 " #$$-&
2aw material . $$$
Work in progress 1$ $$$
1nventory at !une *$ #$$%
2aw material * #$$
Work in progress * .$$
Purchases of raw material 1($ $$$
2eturns outwards * ($$
arriage on raw material ( $$$
;actory wages %$ $$$
5alary of factory manager *( $$$
,irect expenses 1$ $$$
;actory power % .$$
:eneral factory expenses 1# $$$
Annual depreciation on plant and machinery ($ $$$
Administrative and selling expenses .% $$$
2e3uired&
)a+ Prepare 4ipset 7nterprise's >anufacturing Account for the year ended !une *$" #$$%.
5how clearly&
ost of material available for use
ost of materials consumed
Prime cost
;actory overheads
ost of production
)1. marks +
)b+ alculate the production cost per bench. ) #marks +
)c+ alculate the profit made by 4ipset 7nterprise for the period. ) *marks +
Show all your workins.
Total 20 marks
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5. The treasurer of the 5t ,ominic's ricket lub prepared the following 2eceipts and Payment
Account for !une *$" #$$%.
' '
=alance & !uly 1" #$$- -#$ Wages to bar attendant * $$$
2ent of club house # $$$ Wages to groundsmen 1# $$$
=ar takings 1* #$$ Dtilities # #$$
5ubscriptions #( $$$ Payment to creditors - *$$
Purchases of new lawn mower 1( $$$
Additional information&
!uly 1" #$$- !uly *$. #$$%
' '
=ar inventory # *$$ 1 %$$
5ubscription owing *$$ ($$
5ubscription in advance < %$$
=ar creditors 1 %$$ # -$$
;ixed Asset at cost -$ $$$ !
,epreciation on fixed asset is to be written off at the rate of 1$0 per annum on cost.
2e3uired&
)a+ opy the 2eceipts and Payment Account and balance it. ) *marks +
)b+ Prepare the following for the 5t ,ominic's lub
)i+ A =ar Trading Account ) Bmarks +
)ii+ A 5ubscription Account ) (marks +
)c+ Prepare an 1ncome and 7xpenditure Account for the 5t. ,ominic's ricket lub" for the year
ended !une *$" #$$%. ) Bmarks +
Total #$ marks
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B. The following balances and other information were taken from the books of 5erve<>e<Well 4td
on /ovember *$" #$$% A;T72 the Trading and Profit and 4oss Account has been prepared&
Authori"e# Share Ca$ital
#B$$ $$$ ordinary shares at '1 each
-$ $$$ preference shares of -0 at '# each
,ebit redit
' '
6rdinary share capital E fully paid up #$$ $$$
-0 Preference share capital E fully paid up 1#$ $$$
:eneral reserve .$ $$$
Dtilities owing ( $$$
=ank 1# $$$
,ebtors and creditors .$ $$$ #( $$$
Premises at cost *#$ $$$
/et profit for year ended /ovember *$ " #$$% 1($ $$$
Provision for depreciation on machinery and plant *B $$$
1nventory .( $$$
1nsurance prepaid * $$$
(%% $$$ (%% $$$
The directors of 5erve<>e<Well 4td. 8ave recommended the the following&
1. A transfer of '#$ $$$ to general reserve
#. An ordinary dividend of *$0
*. The payment of the year's preference dividend
2e3uired&
)a+ Prepare the profit and 4oss Appropriation Account for 5erve<>e<Well 4td. ;or the year ended
/ovember *$" #$$%
) ( >arks +
)b+ Prepare a lassified =alance 5heet in vertical style for 5erve<>e<Well 4td. As at
/ovember *$" #$$%
) 1*marks +
)c+ )i+ 5tate what a negative working capital indicates about the financial position of a
business )1 mark+
)ii+ 1dentify 6/7 method" other than issuing shares" which 5erve<>e<Well 4td. ould have used to
finance the business. )1 mark+
Total 20 marks
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-. The factory workers at :armex 4td. Are paid '*$ an hour" >onday to ;riday" and time and a
half on weekends. The time card below shows the number of hours worked by each of the four
employees.
:armex 4td.
Time ard
Em$loyees Sun %on Tue &e# Thu 'ir Sat
A. 5mith . % < % - < <
P. Persaud . % % % - - *
T. 2oberts ( B B B - - *
4 >artin . - - - % - .
,eductions include&
/ational insurance& (0 of gross pay
ontribution to pension fund& #.( 0 of gross pay
1ncome tax& 1(0 of pay after deducting national insurance and pension fund contributions
2e3uired&
)a+ 6n the answer sheet provided" prepare the payroll for the four employees.
)b+ Write brief definitions for 7A8 of the following&
)1+ Time clock card
)11+ :ross pay
)111+ FTake home payG
)1H+ =onus
)H+ Holuntary deductions
EN( O' E)A%
*uestion No. + ,a-
.arme/ 0t#
1ayroll
A. 5mith
'
P. Persaud
'
T. 2oberts
'
4. >artin
'
:ross Pay
/ational 1nsurance
Pension ;und
1ncome Tax
Total ,eductions
/et Pay
TO 2E ATTACHE( TO 3O4R ANS&ER 2OO50ET