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10 views

Control Assignment

questions

Uploaded by

abdallah mzee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INDIVIDUAL CONTROL ASSIGNMENT 1

PRINCIPLES OF ACCOUNTING
Attempt all questions and working notes should form part of the answer.
(Time allowed: 3 Hours) (Date: Tuesday,5 March
2024)

Question One (10 marks)


Write short notes on the following:
a) Single entry system.
b) Contra entry.
c) Creditor’s ledger account.
d) Discount received.
e) Analytical petty cash book.

Questions Two (10 marks)


State with reasons whether the following statements are True or False:
a) “Salary paid in advance” is not an expense because it neither reduces assets nor increases
liabilities.
b) Reducing balance method of depreciation is followed to have a uniform charge for
depreciation and repairs and maintenance together.
c) The financial statements must disclose all the relevant and reliable information in
accordance with the Full Disclosure Principle.
d) The balance in petty cash book represents an asset.

Question Three (20 marks)


I. What is accounting information?
II. What is the relationship that exists between accounting functions and organization information
system?

Question Four (20 marks)


a) What is an imprest in a petty cash system?

The best preparation for tomorrow is doing your best today. 1


b) Prepare a Petty Cash Book on the Imprest System from the following:

2023 Shillings
February 1 Received 200,000Tsh for petty cash
2 Paid auto fare 5,000
3 Paid cartage 25,000
Paid for Postage & Telegrams 5,000
4 Paid wages 6,000
5 Paid for stationery 4,000
5 Paid for the repairs to machinery 15,000
6 Bus fare 1,000
6 Cartage 4,000
7 Postage and Telegrams 7,000
7 Cartage 3,000
8 Stationery 2,000
9 Sundry expenses 5,000
10

Question five (15 marks)


Ms. Tinna commenced business with Tanzania shillings 250,000 cash on June 1, 2023
and presented the following for the month.
June 2. Paid rent 20,000
June 6. Purchases 85,000
June 12. Sales 217,500
June 16. Paid wages 4,220
June 18. New motor vehicle 220,000
June 24. Sales 412,345
June 26. Purchases 108,000
June 30. Electricity bill 3,305
All the above transactions are by cash. Prepare the cash book and transfer to the ledgers.

Question six (25 marks)


Prepare the necessary accounts for the month of August, 2014 for Better Change Limited from
the following information and extract a trial balance.

Aug. 1. Started business with cash of N200,000.

The best preparation for tomorrow is doing your best today. 2


Aug. 3. Bought goods on credit from D. King N54,000; Mr. KamaraN87,000

and R. A. AkintoyeN25,000.

Aug. 4. Paid rent by cash N12,000.

Aug. 6. Sold goods on credit to Flamingo N43,000; Bose N62,000 and Tony

N170,000.

Aug. 10. Flamingo paid by cheque N42,000.

Aug. 12. Tony paid cash of N166,500.

Aug. 21. Sold goods on credit to Bose N60,200.

Aug. 24. Bought goods by cash N18,715.

Aug. 26. Cash sales N46,148.

Aug. 28. Bought goods on credit from Mr. Kamara worth N28,950.

Aug. 30. Paid salary by cheque N7,250.

Aug. 31. Withdrew cash of N5,000 for personal use.

Aug. 31 Withdrew N30,000 from bank for office use.

Aug. 31. Paid Mr. Kamara N82,750 by cash.

END

The best preparation for tomorrow is doing your best today. 3

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