CERTIFICATION COURSE

IN
DIGITAL ACCOUNTING

-SPREADSHEET APPLICATIONS

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MODULE 1: SPREADSHEET APPLICATIONS
Case 1- Preparation of Financial Statements & Analysis
Your Client, ABC Ltd informed you of the financial crisis the organization has been
experiencing for three years (2017, 2018 and 2019). Despite making profits for these
years, the company has been unable to meet matured obligations. The Executive
Director is getting frustrated and has concluded that “financial statements are
misleading and does not truly help in accurate decision making; the company is not
doing well both in terms of profits and liquidity; 2018 performance is better than 2017
and 2019 but we can’t still meet obligations”. He presents to you the following extracts
and need advice. He requires a response within One hour for presentation at
Management meeting.
BALANCES EXTRACTED FROM BOOKS
2017 2018 2019
$ $ $
Sales Revenue 4,500,000 5,000,000 6,000,000
COGS 1,300,000 1,500,000 2,200,000
Selling Expenses 30,000 21,000 30,500
General Expenses 45,000 32,000 42,000
Lease Expenses 25,000 12,000 22,000
Depreciation Expenses 45,600 30,000 20,000
Interest Expenses 12,000 13,000 23,000
Taxes 26,000 48,000 18,000
Preference Stock Dividends 56,000 10,000 15,000
Cash 500,000 300,000 200,000
Marketable Securities 49,000 18,000 88,000
Accounts Receivable 23,000 17,000 27,000
Inventories 25,000 21,000 41,000
Land and Buildings 3,387,667 3,956,410 5,956,410
Machinery and Equipment 450,000 350,000 450,000
Furniture and Fixtures 54,900 52,000 82,000
Vehicles 23,400 21,000 22,000
Other Assets (Fin. Leases) 12,000 10,000 14,000
Accumulated Depreciation 45,600 75,600 60,500
Other Assets 23,560 19,000 38,000
Accounts Payable 1,101,189 900,000 400,000
Notes Payable 12,300 12,000 15,000
Accruals 34,566 23,460 12,660
Taxes Payable 26,000 48,000 50,000

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 Other Current Liabilities 32,222 31,200 31,800
Long Term Debt 23,000 19,800 29,200
Preferred Stock 100,000 100,000 100,000
Common Stock of $1 each 200,000 200,000 200,000
Paid in Capital in Excess of Par 12,450 11,350 22,430
Required: How will you go about this task as a Professional Accountant and Financial
Analyst?

Case 2- Statement of Financial Position

Use the following balances extracted from the books of Walmart LLC to Prepare a
Statement of Financial Position according to the Provisions of IFRS using Microsoft Excel,
for the Period ended 31st December, 2021.
$
Inventory 3,000,000
Prepayments 2,000,000
Share capital 15,000,000
Share premium 5,000,000
Bank overdraft 3,000,000
Trade payables 2,000,000
PPE 20,000,000
Intangible assets 10,000,000
Investment property 5,000,000
Loans 8,000,000
Debentures 7,000,000

Case 3- Statement of Comprehensive income

The following data was extracted from the Books of Abuja Plc for the year ended 31 st
December, 2018.
Revenue 1,170,000
Expenses 750,000
Income tax expense 75,000
Loss for the year from discontinued operations 91,500
Other Comprehensive Income:
Exchange differences on translation 15,000
Available-for-sale financial assets 7,200
Cash flow hedges 3,600
Gains on property revaluation 24,000
Actuarial losses 2,001
Share of other comprehensive income of associates 1,200
Tax on other comprehensive income 12,000
Other comprehensive income for the year 36,999
Required: Use Excel to Prepare the Statement of Comprehensive Income for the year
ended 31st December, 2018, using single approach basis.

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 Case 4- Bank Reconciliation
The following are the bank statement and cash book of Walmart Llc for the month of
February, 2019.
JP Morgan Chase Bank
2232 College Drive, Baton Rouge, Louisiana
STATEMENT

Account Name: Walmart Llc Acct No. 20-00-55 7653246

CURRENT ACCOUNT $ $ $
Date Details Dr Cr Balance
1-Feb-2019 Balance b/f 387.9
6-Feb-2019 Credit 1,368.48 1,756.38
9-Feb-2019 Cheque No 103568 524.71 1,231.67
11-Feb-2019 Credit 368.36
Interest on short-term deposit 208.34
Cheque No 103567 1,107.46 700.91
13-Feb-2019 Cheque No 103570 663.45 37.46
18-Feb-2019 Credit 2,004.37
Standing Order - ACCSA Fees 400 1,641.83
19-Feb-2019 Cheque No 103571 480.5 1,161.33
24-Feb-2019 Credit 856.09
Cheque No 103569 1,035.76 981.66
28-Feb-2019 Bank Interest 4.84 986.5
28-Feb-2019 Balance c/f 986.5

Walmart Llc
Cash Book for the Month of February 2019
Cheque Amount Cheque Amount
Date Description Date Description
No. N No. $
Receipts Payments
01/2/19 Opening Balances 387.90 02/2/19 103567 Subscriptions 1,007.46
06/2/19 Tender Fees 1,368.48 09/2/19 103568 Local Travels/transport 524.71
10/2/19 Radiation Fees 368.36 11/2/19 103569 Teaching aid material 1,035.76
17/2/19 Sale of ID Cards 2,004.37 13/2/19 103570 Financial Consulting 663.45
24/2/19 Donations 856.09 17/2/19 103571 IT Consultants 480.50
27/2/19 Levies 648.34 27/2/19 103572 Motor Vehicle Mtce 1,233.80
28/2/19 113460 Investment Income 257.50 28/2/19 103573 Power Plant Mtce 246.58
28/2/19 103574 Refreshment and Meals 103.64
28/2/19 Balance c/d 595.14
5,891.04 5,891.04
03/1/19 Bal b/d 595.14
NB: Cheque number 103567 has been recorded in the cashbook as $1,007.46 instead of
$1,107.46.

Required: Prepare the Adjusted Cash book for the month of February 2019 and the
Bank reconciliation statement as at February, 2019.

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Case 5- NPV Calculation
Mr. Vincent invested ₦5,000,000 on paper manufacturing business with the cost of
capital at 10%. The project is to last for 5 years with the following cash flows,
₦1,200,000, ₦900,000, ₦870,000, ₦650,000 & ₦800,000 respectively.

Required: Using Spreadsheet, determine the viability of the project viable.

Case 6- Loan Amortization

An agency obtained a facility from a commercial bank under the following terms and
conditions:
 Facility amount: N2,000,000
 Tenor: 24months
 Interest rate: 25% p.a (subject to changes in money market conditions)
 Fees: 2.5% flat
 Loan Insurance fee: 1% flat
 Repayment source: Monthly allocation
 Collateral: domiciliation of main account
 Default Clause: if the borrower fails to pay any sum (of principal, interest or
otherwise) due or become due hereunder, the Borrower shall be liable to a
penalty fee of 1% flat per month on the un-repaid portion on the facility. This
fee, which shall be charged on the 1st working day after sum is due, will be in
addition to the prevailing temporary overdraft interest rate on the unpaid sum
from the date when such payment falls up to the date of payment.

Required: Use Spreadsheet to prepare the Amortization Schedule.

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 Practice Questions

Question 1
Loan Amortization/ Repayment Schedule
God’s own Ltd obtained a facility from a commercial bank under the following
terms and conditions:
 Facility amount: N10,000,000
 Tenor: 24months
 Interest rate: 15% p.a (subject to changes in money market conditions)
 Fees: 5% flat
 Loan Insurance fee: 1.5% flat
 Repayment source: Monthly allocation
 Collateral: domiciliation of main account
 Default Clause: if the borrower fails to pay any sum (of principal, interest or
otherwise) due or become due hereunder, the Borrower shall be liable to a
penalty fee of 5% flat per month on the un-repaid portion on the facility. This
fee, which shall be charged on the 1st working day after sum is due, will be in
addition to the prevailing temporary overdraft interest rate on the unpaid
sum from the date when such payment falls up to the date of payment.

Required: Use Spreadsheet to prepare the Amortization Schedule

Question 2
Mr. Adejare invested ₦10,000,000 on printing of recharge card with the cost of
capital at 20% the project is to last for 5 years with the following cash flows,
₦3,200,000, ₦1,100,000 ₦900,000, ₦750,000 & ₦850,000 respectively.

Required: Use Spreadsheet to determine the NPV.

Question 3
The following information relates to a government agency. From the
information, prepare cash for the Month of October-December 2012 using
Spreadsheet.
 For the 1st quarter allocation, N70,000,000 is expected to be received in
October, 2012
 Net salaries for the month of October will be N10,000,000
 Payment of Union dues of N500,000 will be deducted in November 2012

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  IGR expected will be N2,000,000 in October and N3,000,000 each in
November and December
 Maintenance for Motor Vehicle for October for N550, 000 will be paid in
November while that of November for N750,000 will be paid in December
 Net salaries for November and December will be N12,000,000 each
 Payment for LPO of N150,000 issued for the supply of stationeries in August
2012 will be due in November 2012
 Tax deductions in October and November 2012 totalling N800,000 will be
paid in December while that of December and will be paid in January 2013
 Supplementary allocation of N20,000,000 for the last quarter will be
received in November 2012.
A new motor vehicle N150,000 will be purchased in March 2012

Question 4
Blessing Nigeria Enterprise bought the following fixed Asset on the 30 th January
2013. Motor Vehicle, Machinery & Fixture at the rate of 2,000,000, 1,500,000 &
1,000,000 with the Scrap value of 100,000, 250,000 & 48,000 and the expected
useful life are 4yrs, 5yrs, & 3yrs respectively.
Required: Calculate the Annual Depreciation using Straight line method.

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 Thank you for your attention!!!

PROF. ADEBAYO PAUL ADEJOLA, FCNA, FCA, FCTI, FCCSA (USA).

Managing Consultant, White Knight Consulting, Nigeria;
Regional Rep., ACCSA Global.
Mobile: +234 803 680 2529
E-mail: [email protected]
Website: www.profadebayopaul.com

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