ACY(case_study)-min

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Bank loan 15,000 Total 245,485 245,485 You are given the following additional informations - Closing stock, as at 31.12.2012, 10,200 FCFA - Depreciation is to be charged as follows: Land and building 1% straight-line method Office equipements 10% straight-line method Motor vehicles 20% reducing balance method - Wages owing 1,200 FCFA - Insurance paid in advance 200 FCFA - Provision for doubtful debts is to be maintained at 5% of debtors. REQUIRED: 1.1 Prepare the Trading & profit & Loss Account for FORCHOCAM LTD for the year ended 31 December 2012 taking into account the notes to the trial balance. 1.2 Describe the merits and limitations of using a bank overdraft to finance working capital arrangements. EXERCISE 2 2.1 Name four errors that will not be disclosed by a trial balance and provide an example of each. 2.2 Carol Eaton’s accountant has prepared her trial balance which did not balance (below). Descriptions Debit (FCFA) Credit (FCFA) Returns 2,500 2,710
Capital 45,000 Sales 30,000 Purchases 25,000 Drawings 8,220 Rent/Rates 7,000 Motor Vehicles 8,000 Discounts 800 600 Debtors and creditors 32,900 5,000 84,420 83,310 Realisation that this did not balance, the following errors were discovered by Mike the internal auditor. a. A credit note for 2,850 FCFA was entered on the customer account of P Scott but no entry was made in the returns account. b. The sales account was overcast by 4,800 FCFA c. 2,970 FCFA of goods withdrawn for Carol’s personal use was entered into the drawing account but no other entries were made d. A discount allowed of 2,520FCFA was credited in error to the discount received account e. Cash sales of 19,780FCFA had not been entered into the sales account f. A bad debt of 6,300 FCFA had been entered in the customer’s account but not the bad debt account g. The purchases account had been under cast by 2,650 FCFA. REQUIRED Prepare a suspense account to correct the errors discovered showing clearly the opening and closing balances. SECTION B: OHADA ACCOUNTING COMMON TRANSACTIONS
Page 1: Specialty: ACY (2016) Paper: Case S
Page 5 and 6: A vehicle HILUX 556 was acquired on
Page 7 and 8: Ndolo 178875 Fully irrecoverable Ai
Page 9 and 10: “Government generally establishes

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