NATIONAL EXAM FOR HIGHER NATINOAL DIPLOMA (HND)

Field : BUSINESS, FINANCE AND MANAGEMENT

Specialty : ACCOUNTANCY

HND 2019/2020 SESSION

COURSE TITLE : CASE STUDY

Course code : ACC15

Credit value 12

INSTRUCTIONS TO CANDIDATES

 This paper carries four sections

 You are required to attempt all questions

SECTION A : PROBLEM SOLVING QUESTIONS FROM GIVEN BUSINESS

SITUATIONS/30 MARKS

QUESTION 1/ 15 marks
AYUK Company has the choice between either buying machine cash down at 408 000F or signing a
leasing contract with the suppliers under the following conditions
-Pay 3 annuities of 150 000F (the first one being paid when signing the contract);
-At the end of the 3rd year, the enterprise could acquire the equipment against payment of 50 000F
The contract is signed on the 30/04/2011
The lifetime of this equipment is 4 years. The VAT rate 19, 25%
The lifetime of this equipment is 4 years. The rate of VAT enforce is 19.25% (applicable only to
interest and other expenses).

Work required:
1.1 — Determine the rate of the leasing contract.( 3 mks)
1.2 - Prepare the amortization schedule of the leasing (3mks)
1.3 Show the accounting entries relative to the signing of the contract. (1 mk)
1.4 — Show the accounting entries as they should be as at 31/12/2011, 01/01/2012 and 30/04/2012.
(8 mks)

QUESTION 2/ 15 MARKS
The graph below shows the movement of packaging into and out of the warehouse of
a certain firm:
Additional information:
- The stock of packaging on 01/01/2004 was 6000 of which 4000 were on deposit.
- The transactions of 08/01/2004 and 20/01/2004 relate to purchases while that of 30/01/2004 refer to
sales.
- The rest are either packages on deposit or their returns.
- Packages are bought and sold each at 800F and 1000F respectively. The price of deposits and selling
price are same.
- Packages are returned at 900F each.
N.B: The movement of the packages was not liable to VAT.

WORK REQUIRED
(j) Present the stock Bin Card of packages for the firm. (10 marks)
(ii) Present the accounting entries of the various transactions in the Journal of the enterprise.
(5 marks)

SECTION B: PROBLEM SOLVING QUESTIONS FROM GIVEN BUSINESS

SITUATIONS

QUESTION 3/ 15 MARKS

IGWE Enterprise manufactures household furniture. This enterprise has been operating for quite some
time now. On the 01/01/2005, the enterprise acquired a computer referenced PC 1386D at the cost of 1
920 000F. A second computer referenced PC 1245C was acquired on 05/01/2007 at the cost of
3 200 000F. The enterprise practices the reducing balance method of depreciation on its fixed assets.
On the 31/12/2008, the Net Book Value of the computer in the balance sheet stood at 1 400 832FCFA.

Second work required

1) Determine the reducing balance rate of depreciation10 marks ( show detail calculations)
2) Present the depreciation tables of the two computers3 MARKS
3) Record the depreciation of the period 2008. 2 marks

SECTION C

SECTION D: COMPANY ACCOUNTING/ 30 MARKS

QUESTION 6/ 20 MARKS
THE following information was provided as for GOTA Company
Code Numbers 31/12/2008 31/12/2009
1011 28 350 000 12 150 000
1012 / 16 200 000
1013 106 650 000 106 350 000
109 28 350 000 12 150 000
111 2 365 200 4 665 200
112 3 689 500 6 689 500
118 2 825 900 6 825 900
121 / 1 640 500
129 2 600 000 /
137 / 28 500 000
138 / 11 500 000
4616 4 050 000 /
4617 16 310 250 /

GOTA is a public limited company set up on 15/10/2007 with a capital made up of shares in
kind and shares in cash.
The contribution in kind (industrial building) was paid on the 01/11/2007 whereas the
contribution in cash was paid up by 2/5 by bank cheque on 15/11/2007, however, some
shareholders of shares in cash paid up to 80%of their subscription.
Registration fee were paid by bank cheque on the17/11/2007.
On the15/08/2008, the board of directors called up a quarter of cash contribution with due
date of payment on 01/09/2008, all the shareholders paid the bank cheque on 01/09/2008
except FRU, HOLDER OF 850 shares in cash. After summon and no reply, his shares were
sold at the stock exchange on 31/10/2008 for sales amount equivalent to 22 162 500F plus
deduction of 1.5% of sales as bank fees, the lateness interest amounted to 114 750F
 On the 15/12/2009, the board of directors call up a part of cash contribution with due date of
payment on 01/01/2010. All shareholders paid by bank cheque on 01/01/2010.
I. Calculate the nominal value of shares.( 5 MARKS)
II. Calculate the number of shares in cash. .( 3 MARKS)
III. Calculate the number of shares in kind .( 1 MARK)
IV. Calculate the number of shares paid in anticipation .( 2 MARKS)
V. Calculate the rate per annum of the lateness interest. .( 2 MARKS)
VI. Reconstitute the table of appropriation of the net profit for 2008 and calculate the
value of” r” with the following information
-legal reserve according to the law
-statutory reserve?
-optional reserve?
-First dividend or statutory interest r%
-The balance after deducting the carried forward should be appropriated as
the second dividend
-Net super dividend per share 668 ( 7 MARKS)
QUESTION 7 APPROPRIATION OF PROFIT IN A PLC
/10 MARKS

The company BONACAM SA was created on the 1st of January 2007 and its capital consists
of 500 shares subscribed in kind and 2 000 shares subscribed in cash paid up by half( 1/2)
at the creation and the rest was realized on the 1st of October 2008.
The first financial year ended with a loss of 2 540 000F CFA.
On 31/12/2008, the company discovered that it had made an accounting profit. For this
reason, the O.G.A of shareholders decided to allocate an optional reserve of 1,000 000fcfa
after the sharing of the dividend.
The dividend distributed permits to realize a financial value of 27, 778F, for shares in kind
and 19, 445F for shares in cash. The capitalization rate is 9%
The mathematical value ex-coupon, calculated from the balance sheet as at 1/12/2008 is 21
520F CFA. The amount of the capital is 50 000 000F CFA.
On the year 2008, the company recorded fictitious expenses for an amount 500 000FCFA
and as at 31/12/2008. The over-value of 2 500 000FCFA was noticed
I. Determine the amount of dividend distributed.(1 MARK)
II. Determine the statutory interest rate and the super dividend per share. .(2 MARKS)
III. Determine the total statutory interest, total super dividend and total gross dividend
(2MARKS)
IV: Determine the amount of the net accounting profit on 31/12/2008 .(5MARKS)