FINANCIAL AccoUNTING

UNIUERSTy ESTION PAPER ANRSWÍERS

APRIL 2014 12220/ MAM1C
SECON- A (OX220 MaHRs)
lhat aHO acunitirg coxiopla?

AWE CCOuntingConCEpls _ase he as3options(ced

postulaies 090 ideis uihich eo exenlial to the
Peractice ACountikng and naricial staterenia
2 ha eialbalonre ?
MYSASfatemerd hiohucd ale balanciaathe
ladaa accunts a .ukirng entepeize to ShoDo
BpoHalely the deit Ohd edit balances 8
kripuo aS 1eial alance hela to test tho
Aithnoiol aCCustacy la tie booka the tocks

3 Dee thetastra ledgsi?

vAnE:-A Ledgsn nabe dogCoilbd 03 A S0mnastyo
8taberrentall the tetaxigactiorg Holajig
takon pla dueinod e peuLOCLHik
and SkhouOB heinet e o
A What Q91 thedierent 8tnges in yiol occou
ANN& RCpaation inal acourls isho last Step
Kaccountig eude tuial acCCutsincude
LKao a c x 3 guch a8
 2

toss0hLtad
id Nolil aud

6 lkat nlance ieot

Aus:- Anlance shoot is h Stalenicl poieAHEd CA

O
8ciod dale öutaihikga SuxkaHY O8gets
&habilities ncludiug the alaices accounls
olCxtiatnkg ale U teadug and perc{t andd
LO8 aCcourtx Q9 Potynoledt 8eiOTUACA
to Cxchibit a leue ad plr ye the
oleola Lohcbm at a (étain dale
6 laat lheatnentdeuollers ho atoat
O4Hapkuization?

AXSDonaions 0vo
OOie dorabicor uuca 60oceuad goer a
Spdiciic pUeLpOBe ate the doxatior 8 uilise
RosSpecuc unfORe'any largo doration
dcnation auouL 8Sh0U a Cor?he
teXCore rporidUoHe acCCu tho oNtCud
Qeieol dcration
EHCeve Buioble amount, it ghaud be
Capitolikcd ond 8hould te SODL L tho
bakiitiesSde halarae eot
 09te the teuea. codoil
vrsGaodnill is the talue te_Hepito.ion Wich
ti0 iBkieS builds up due to 1 eicient
RoUdlLuctB B CHepUutatio euhbles he' buEuEM
to Cn aDsHO thian the neuniL pEtaJits cgenai
b theothet busin.

8ka SacHilicing siatio?

hlheneiest
OHtnot,_cld oHtresv ave_to StSstenoden 3OXMO
thoer old shoeG in acuet thoIOD
Dasttkoehe &usender agho9UO tucld paettren
aado in CEHtak Alatto This dtio 8
Called aceilicirg dlgto
hal do UCLL KManbu depeciaion?
ArR:pereecialion is a pobLrnahient declite ir he
alue e QX a88t tue qeadual deci@O3E,
hcth in tne value and ukeJalrs .d ar
a8xet du
csie B depreCiaten Coxion
aeicnco ihat tokeeEL a a89et is used it
Cduces lhlue
 Stelaiqkab lie icthrd.c
Io laiLte a h0et note on
dEaecualiCK

lite nethod g deHociation,

PS-Dride the eaiaht
doreeciaticn is ChHQO CLOnu OCHY_Uga U
tehocugtiout the eectiueie
arlag&a.

Npther WDds, a yined Perdpoetic h e

CetaihaCO8 the 0et LOHltion "d in
ehch teQS at tue OSet acount
QUESLICNT rMOY be Heduced to zeiolce) US
IekLdLual alle at the erid f the deiite
eskiad elepelesenting 3stxnhted lie
Stntethe urietion lireitatiors Siale

1n8uiCict HeCceids
dBolice total alanco
Dgicouliy tuaBctaigiug ferolit
u DNeultu aKCOLoiatg tinanaial posLtiChL
abb f Stntetico däla
VL)EncouHATENKNCA to femud
) &ectijiatoe qatice i8 dudieult
alue UslhOS8 COXYob bo"easCeHtaired
anrin Qnd deikon Making a9e_ diQult
i8titeutioo lan
X)FCDLKgtn dduIS, PeLDOSdtng daiks etc
R Dsltngii ehucen Single audey &ylex ad daute

BPSIS
3NO |DNPRERENe ocBLE ENTRY SSTEM SINAIE ANTRy 3gTEN
RECdig dleotk asect all amScege s , bir
GeOgactioru teacactic8 QuO asgeds in Scoie bthe
SHCCCeided. a Sirngle OspECE C)

2 001irna AL RSRALAaUGrd.cxulu peEKal ATOU

ICKKkal aLtouts.aO and shacCount.o1e
ofened CRONed
3 ecRacation etal 0alande a Hial alance anno
tetial kalanbe ReHoretcd
4ARellaikirq vAccuetae eoltceo nktbeðlos8 Cakot
potltcealls lCs (an be oud be shuktd netrali,
aeCugh fendira the'aksene c
Qrd ercitaxdlbs teadia aud be0lit
Alc OXid AlC
5Peiealing Reliate trnancialealarice Sheetet.
Hinanclal PORition can he tauind be pemed:So
thsAcugh talane iunO.kiCiau sio b
Skoob
 SfCtioN-8 6MARKS

13 uhal is doukle eilsy &sleari? kat

oske s
adyaxdages
AUsDOEle ENTRY SySTEM
CDeHdikg to doukl eley SKLen, EURH
teloSactiod as tio aspecisCe bouelit olktoluina
OSpgct (oed tCcxikng aspoctaud he ohe Cie
Cre
bcrnci qukig a8xabCedcutpina aspe he
avd hokengtt QigaSeCt_i8 isaid tokea
Coedit toS OVELC) erIUSaCLKCrL, Crie aCCCuit &
to bo doited od Oriothe aCtcurt is to be
Cotedited o in_Cetde to haue a Coxiplete
Croed d the teansactio
ADUANTRGÉS CE OEE NTRy SUSTEM
Coxplete ned 1h_Onables to keep0
COXCIpete, SUsteratic and accueiate eLCoSId all
busies telaxisacioIK.0ctails aul teransaCiCB
al ardi ime
WRCaHtQiuient eoit.ded bS he &Steatic
oaiatalned' unde dcuble cilst S8tem
enobes a bi8ines CRHOtica8 0St aru quer
RCtiod..Th 0Ures CaX Keiod fh0 peicitablit
bustiesS COCSHatiorna paiiadliallu
t Roal aXd essoraoccins, tho qiianciall
Rtion d he busnOS Can be asestained
balaice hee
 Dridey the doublo ortey 80gterm'ECHY_dleb ha3
a Co9tsieEpondleg Ccdit. ihe aslkenoftcal acOLOy
the borks Carn be ested ty a eaiug a
Stalement aled Tealbalance
()
dbpul all OC and ighilties lL be auhilable.
D 1a 0uthoexitieg he businesRMECO Ratisld
thg ta 0uihotios he oairntoto _is
aCousbockg eopets undleI he doube
Wi Axolu duo cen Cktore&: he ACCout o
(OUL HOUeol the anlourt duo CURtoxsUL,
Ahaiskcde Can be ot to tho CIsoxaOR
kip do (oReile ihes lacccutg etchipiluy.
UA ARCurntde to Ipplieeghe telQdea t
asCextairn Soickel the book aourts tho
SuXS hedies hia CAedutpeB (nd uakO
ReibES 08IangemiOnt3 to_mtien fecriptkt
Ccmgcoatiuo gtiidu: ReRlbs Ce eO M
boCxpoercd upttn tare euicus cas8
Qrnd HehsonS
0300Htgir
4 foicna he inlcsrraaitcxu beloon, 0sA iOUSRIOL
a)8alae id K6.cco
bRent mid to KIUMa 1,600
Cetedi puHCMORCR elcK_MlA A0
d) Dicout cceQd 5ceo
 9

Sales oetet 4,COO

4 C00
Dobtoss (2,000

Tetlal balaKce
3 NO NaRno e ACLKTtf 0e:BAlnNCE CRBALANCE
Capital ,cco
2 Plant &MaCikeY 12Cco
RAIckiase8 8,000
Salos (2,c00
Sundey eRditcea
Rank looQ 2.2,000
ROit oustanding CCO
CRCrug Stock
ales iotutn A,O0O
rskne 14,coo
1ehtoes l0,000

8ECTION C 10MARKS
2o Dixtinguish betoCEK tKaNaQoNed acooUKiiNa
aMiacost actoui
A(s Marnaqenat acotKtirg Cogt accouXitLAg
1that belaxich 1 tuat tearch
Q0CouentingLhich eienut acicuding lhich. deak
excdusiuelk trokaggHiQl\tn eloskcalion,
dgtsion toking- t RVidosNCDNdiug.alleiri,
 10

USecit ad etspectuo
is geunicticxt paur.t Cest deleines od
09pdiska ,to-cedirnatira.dived a ecdactichbdist
tng ard odetolira t Ykualg-blitior b depaHLxicnih
PeICUideS data cu unds axtHanctices. fetLucs ct
eopeydio DTlENEntatinReUCtNq eCdCICES8
budets etc Alnost all te SeLCES 8COSt edut
polic deCKiCKIS GhIanagercnd &COL COEU COXiIsIcl tOt
0 Ode C the 'basis aCcountita data
peikioey dala pEovid.ed bu a l to tho raaeren
Klatnagshent accukting e the bustKOBS, QLULSTder
awe ot uUSUIQLL QHOMde
uDtt CCslikg cata

1a) Stalermct laies. Janikstan 06 bn

L1ABLLUTLES
Bil& payable 0,500
80p00
CutstandingCedito 500
CloBtng Cpital Dpoo