MODIBBO ADAMA UNIVERSITY OF TECHNOLOGY, YOLA

SCHOOL OF TECHNOLOGY AND SCIENCE EDUCATION

DEPARTMENT OF VOCATIONAL EDUCATION
2018/2019 BSD 206 FINANCIAL ACCOUNTING TEST

INSTRUCTION: Answer Any Two TIME: 1 Hour

1. John and Jude are in partnership, sharing profits & losses in the ratio 6:4 respectively with
John & Jude contributing N180, 000 and N120, 000 as capital. They are entitled to 8%
interest on capital and charge 5% as interest on drawing. John and Jude both withdrew
N20, 000 while John is entitled to N 5,000 commission and Jude N15,000 monthly salary.
Thus, you are required to calculate their share of profit, given that the Net Profit for the
year was N100, 000, and also show all the necessary entries in;
a. Partners’ Appropriation Account,
b. Partners’ Capital Account and
c. Partners’ Current Account. (10 marks)
2. Ali and Adamu entered into a Joint venture on 1 st January, 2017 for the sale of Kitchen
tools. Profits and losses were agreed to be shared in the ratio 3:7. Ali bought goods for
N55,000 and incurred N7,500 as loading expenses; N6,000 as rent; N10,500 as sundry
expenses and N2,000 as market rates. Adamu also bought goods for N65,000 while
incurring N10,000 for advert; N14,000 as general expenses and sold the goods for
N200,000. He is entitled to 10% commission out of his own sale while Ali sold his goods
for N 60,000. You are required to prepare
a. Joint venture account in the books of each venture and
b. Joint venture memorandum account for the period. (10 marks)

3. Hassan conducts his business in two departments. The following balances were extracted
from their records as at 31st December 2014.
Dept. A Dept. B
Opening Stock 50,000 40,000
Purchases 236,000 164,000
Sales 400,000 320,000
Rent 28,000
Admin expenses 42,000
Salesman salaries 88,000
Insurance 21,000
Discount Allowed 8,000
Delivery Van expenses 56,000

Additional Information:
a) The closing stock of each department is 20% higher than the opening stock
b) All expenses relating to sales should be apportioned based on Sales
c) All expenses relating to building should be shared based on floor size of 3:4
d) Others are to be apportioned equally.
You are required to prepare Hassan’s departmental, trading, profit & loss account as at
31/12/2014. (10 marks)