FINANCIAL ACCOUNTING PAST QUESTION

FINANCIAL ACCOUNTING

Q1.(a) State four uses of the general journal
(b) Explain the purpose of each of the following
I) Trial balance
ii) Suspense account
iii) Bank reconciliation statement
iv) Bank Statement

Q2.(a) Explain the following means of payment used in business transactions
(I) Standing order
ii) Payment order
iii) Cheque
B) Explain how a business would treat in it's books a cheque it paid to a supplier but which was dishonoured

Q3.(a) What is depreciation
(b) List and explain three methods of depreciation

Q4. Explain the purpose of preparing each of the following financial statement
(a) Trail balance
(b) Trading account
(c) Manufacturing account
(d) Profit and loss account
(e) Appropriation account
(f) Balance sheet

PRACRICALS

1. The following information is extracted from the book of Love Club as at December 2012
RECEIPT AND PAYMENTS ACCOUNT
GH¢                GH¢

Cash at bank 1/1/2012 2,120 expense on dance 940
Subscription received 5,910 Repair 220

Sale of dance tickets 750 printing and stationary 310

Bar taking 4,110 New Equipments 870, Electricity 320

Bar cost 3,020

Balance at bank 31/12/2012 7,190
12,870. 12,870

Additional information:
I) Subscription in arrears GH¢
  1/1/2012.                           450
31/12/2012.                      560

II) Subscription in advance 1/1/2012. 370
                                                        31/12/2012 220

III) Cost of printing arrears 110

IV) Assets as at 1/1/2012
Figure and fitting 8,700. , Equipment 3,000

V) Depreciation on fixed assets is to be provided at 15% per annum including the year of purchase

You are to prepare :

A. Accumulated fund as at 1/1/2012

B. Income and expenditure account for the year

C. Balance sheet as at 31/12/2012

2. The debit side of Yahoo Ltd's trial balance exceeds the circuit side. The net profit for the period was D4,210
  Further investigation revealed the following errors:

I) closing stock was under cast by D420,000

II) Cash in hand was recorded as D66,000 instead of D66,000

III) The bank balance has been cast by D1,860,00

You are required to

a. Show the journal entries necessarily to correct the errors

b. Draw up a statement to show the adjusted net profit