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UNIVERSITY OF BOTSWANA

FACULTY OF BUSINESS

DEPARTMENTOFACCOUNTINGAND FINANCE

YEAR-END FINAL EXAMINATIONS

(2003/4)

FRONT PAGE COURSE NO:ACC 100 DURATION: 2 Hours

DATE: April. 20041

TITLE OFPAPER: Introduction To Accountin!! SUBJECT:


Accountinf! l/BBA l/BA 1 /BFIN 1 etc

TITLE OF EXAMINATION:BACC MORNING/AFTERNOON -

INSTRUCTIONS There are three (3) questions,ANSWER ALL.

2.

Be neatand showall yourworkings,they carrv ~.

DO NOT OPEN TillS PAPER UNTIL YOU HAVE BEEN TOLD TO D( SO BY THE SUPERVISOR/INVIGILATOR

J~ of Pages 5 o.

Question 1
The following Trial Balance has beenextracted from the books of Sonny Supermarket,a generaltrading businessowned by Mr Sonny, as at 30thSeptember 2003.

The following additional information is alsogiven:


1. The stock as at 30thSeptember 2003 was valued at P77 700. 2 The businesspolicy with regardsto providing for depreciation on fixed assets is: -Premises: 10 % using diminishing balancemethod

Equipment: 15%using the diminishing balance method 3. Wages and salariesaccrued by P420.

4. Purchasesinclude goods valued at P3 120 withdrawn b:r Sonny for personal use. 5 Doubtful debts should be provided for at 1% of trade df:btors outstanding as at
30thSeptember 2003. 6. Other operating expensesinclude prepaid insurancechargesof PI 500 and an amount ofP2 300 for packaging material that was incurred to put stock into a

saleable condition.
As Sonny Supernlarketbusinessaccountant,you are required to prepare the following in good form:

a) b)

Trading, Profit and Loss Account for the year ended 30th September2003 (40 marks). A Balance Sheetas at 30thSeptember 2003 (15 marks)

Question 2
The following is a summary from the cashbookof Broadhurst ~;upermarket the month for of March 2004.

Cashbook

When comparing the businesscashbookto the bank statement1hefollowing

discrepancies found: were


Bank chargesofP80 shown in the bank statementhad not been enteredinto the

cashbook.

2. The bank had debited a cheque for P370 into the busine5saccounterroneously.
3 Chequestotaling P960 had not yet beenpresentedto thf: bank for payment
Interest received ofP420 had beencredited on the ban}l,statementbut not

recorded the cashbook in 5. There were chequesreceived ofP4 840 which were ent(:red in the cashbook but
not yet credited to the company's account by the bank.

6. A cheque for P170 had beenreturned by the bank markt:d 'Refer to Drawer' but
no entry relating to this has beenmade in the company books

7. The opening balance in the cashbook should have beenP6 510 and not P5 610 8 The bank statementshows that there is an overdraft of PI 980 as at 31 stMarch 2004.
You are required to: a) Up date the cashbook

(15 marks)

b) Preparea bank reconciliation statementas at 31 J\.1arch 2004 (15 marks)

4.

Question ~
Discuss following terms: the a) b) c) Trial Balance AccrualsConcept
Balance Sheet

(15 Marks)

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