Dallol Technology &Business College

TVET Assessment for Level III (Accounting)

UNIT OF COMPETENCE: - Process Financial Transaction and Extract Interim
Report

PART .I

XYZ Company has been practicing as a cardio list for three years. During April completed
the following transactions in its practice of cardiology.

XYZ’s account titles, numbers, and balances as of April 1,2003 (all normal balances) are
listed as follows: Cash, 11, $4,123; Accounts Receivable, 12, $6,725; Supplies,
13, $290; Prepaid Insurance, 14, $465; Equipment, 18, $19,745; Accounts
Payable, 22, $765; XYZ Capital, 31, $30,583; XYZ Drawing, 32; Professional
Fees, 41; Salary Expense, 51; Rent Expense, 53; Laboratory Expense, 55;
Utilities Expense, 56; Miscellaneous Expense, 59

April 1. Paid office rent for April, Br.800

3. Purchase equipment on account, Br.2,100
5. Received cash on account from patients, Br.3,150
8. Purchase X-ray film and other supplies on account, Br.245
9. One of the items of equipment purchase on April 3 was defective. If was returned
with the permission of the supplier, who agreed to reduce the account for the
amount charged for the item, Br.325.
12. Paid cash to creditors on account, Br.1,250.
17. Paid cash for renewal of a six-month property Insurance policy, Br.370.
20. Discovered that the balances of the cash account and of the accounts payable
account as of April were overstated by Br.200. A payment of that amount of
creditor in March had not been recorded. Journalize the Br.200 payment as of
April 20.
24. Paid cash for laboratory analysis, Br.545
27. Paid cash for business bank account for personal and family expense.
Br.1,250.
30. Recorded the cash received in payment of service (on a cash basis) to patients
during April, Br.1,720.
30. Paid salaries of receptionist and nurses, Br.1,725.

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 30. Paid various utility expenses, Br.260.
30. Recorded fees charge to patients on account for service performed in April,
Br.5,145.
30. Paid miscellaneous expenses, Br.132.

Require: 1. Journalize each transaction in a two-column journal. (5pts.)

2. Post Journal to ledger (4pts.)
3. Prepare Trial Balance as of April 30(2pts.)
4. Income Statement (1pt.)
5. Balance Sheet(1pt.)
6. Closing (2pts.)
7. Post -Closing Trial Balance (1pt.)
PART: - II MATCHING COLUMN (5pts.)
A B
1. Accounting cycle A. Left hand side of an account
2. Account B. Book of Original Entry
3. Debit C. Right hand side of an account
4. Journal D. Business form used to record Increase or
Decrease Elements of account
5. Credit E. the series of procedures used to record,
classify summarize and business transactions
6. Chart of Account F. the amount of withdrawals made by the owner
7. Ledger G. Reduction Value of Plant Asset
8. Posting H. Transferring business transaction from
Journal to Ledger
9. Depreciation I. Secondary Book of Entry
10. Drawings J. A list of all general ledger account titles

Prepared by: Nahusenay A.[Type text] Page 2