1. On the 31/12/2017, the following information is presented to you before inventory.

NON-Current Original Accumulated Net Accounting Observations

Assets Value depreciation Value
Industrial ? 503 625 ? Acquired on 1/12/14 Linear depreciation. 10years
Equipment
Industrial Tools 3 120 000 ? ? Same conditions as the industrial equipment
Office 1 284 800 1 927 200 Put into usage in 2016, reducing balance (coef. 2)
Equipment
Computer ? ? 5 062 500 Acquired in 01/01/2015. Digressive depreciation; 10
equipment years
Office furniture ? ? ? Put into usage in 01/2014, digressive method (coef
2), Depreciation charges for 31/12/2015 and
31/12/2016 amounted to 2 640 000FCFA and 1 584
000FCFA respectively.
Transport 7 482 000 - - Digressive depreciation. 8 years. Acquired on the
equipment 02/09/2017
Work Required :

a. Complete the table above (14 Marks)

b. Do the end of year adjustments for 2017 in the classical journal (6 Marks)

An extract of the trial balance of BLING BLING Co. Ltd before inventory of 31/12/2013 has the following amounts:

Elements Debit Credit

4162 Doubtful Customers 1 383 300

File 1: The situation of doubtful debts and irrecoverable debts of BLING BLING Co. Ltd as at 31/12/2013 is given in the table
below:

Debts Provisions Settlement

Observation
CUSTOMERS (Tax on the of the year
On the 31/12/2013
inclusive) 31/12/2012 2013
ABAH 655 875 50% 584 325 Settlement for good
BOUBA 298 125 40% ? Increase the provision to 60%
CHE ? 30% 286 200 Increase the provision to 50%
DONG ? - - At most 70% is expected
EFIONG 453 150 - - See Balance Sheet below (1)
FEH 93 015 - - Case in Court awaiting judgement
TOTAL 2 072 565 989 775
BALANCE SHEET OF EFIONG
Assets Amount Liabilities Amount
Building 20 000 000 Privileged debts 6 000 000
Land 16 000 000 Ordinary debts (BLING 40 00 0000
among)
Total 36 000 000 Total 46 000 000

File 2: Statement of Marketable securities of BLING BLING Co. Ltd as at 31/12/2012 is as follows.

Unit Actual value as at

Quantit
Shares Purchase
y December 2012 December 2013
cost
BICEC 250 36 000 42 000 45 000
SGBC 120 39 000 30 000 37 500
NFC 50 45 000 48 000 43 500
AFRILAND 180 42 000 40 500 45 000

File 3: Statement of Stocks of BLING BLING Co. Ltd as at 31/12/2012

Book Values Depreciations
Stocks
31/12/2011 31/12/2012 31/12/2011 31/12/2012
Raw Materials 1,500,000 2,200,000 - -
 Other Supplies 2,100,000 1,600,000 15% -
Finished Products 7,400,000 5,000,000 10% 15%
Required:

a. Prepare the statement of inventory of doubtful and irrecoverable debts as at 31/12/2013 (Determine all missing Values)
(5marks)
b. Present the statement of investment securities as at 31/12/2013 (4marks)
c. Present the statement of stock as at 31/12/2013 (3marks)
d. Carry out the adjustment entries in the journal. (8marks)
2. The following information is provided to you on the 31/12/2006 before end of year adjustments:
 Industrial and commercial machinery 1 600 000FCFA
 Accumulated depreciation on industrial and commercial machinery 960 000FCFA
 Furniture and equipment 5 211 160FCFA
 Accumulated depreciation on furniture and equipment 1 537 500FCFA

The industrial and commercial machinery were acquired at the start of the business and were regularly depreciated at the
straight line rate of 20%

The furniture and equipment which is depreciable following the straight line method consists of:

 A computer acquired at the start of the business;

 A printer acquired on the 01/07/2006 at 1 431 000FCFA (Tax Inclusive) by an exchange of an old one which had
been bought on the 03/01/2004 at 1 073 250FCFA (Tax Inclusive) and valued at 619 840 FCFA (Tax Inclusive) on the
01/07/2006. On the date of disposal, the accountant made the following recording

Accounts DETAILS AMOUNTS

Dr Cr 01/07 Dr (FCFA) Cr (FCFA)
244 Furniture and Equipment 811 160
521 Banks 811 160
Being Exchange Value received upon exchange of fixed assets
- The transactions are liable to VAT at 19.25%
- The exchange is a non-current transaction

Required:

a. Determine the starting date of the business (6 Marks)

b. Pass the entries relating to the disposal of the printer (4 Marks)
c. Do the end of year adjustments for 2006 in the classical journal (10 Marks)
d. The statement of fixed assets in ABBUVALLAH Enterprise as at 31st December 2018 before end of year
adjustments was as follows:

3.
Fixed Asset Original Acquisition Lifes Rate Depreciation Accumulated Net Book Depreciation
Value Date pan Charge Depreciation Value method
GOODWILL ? ? 6 yrs ? ? 5000000 7000000 Constant
BUILDING 15000000 01/01/2015 ? 25% ? ? 6328125 ?
EQUIPMENT ? 01/07/2017 5yrs ? 800000 ? ? Linear
VEHICLE 4000000 ? 4yrs ? ? 1250000 ? Straight
FURNITURE 10000000 01/01/2016 ? ? ? ? 3600000 Accelerated
Required: Complete the blank spaces (10 Marks)

4. You are an accountant in LENJO Company. Your Boss Mr. Ndongo have extracted from the trial balance before inventory as at
31st December 2015 the following information
A/C No Depreciation Debit Credit
4162 Doubtful Customers 3,219,750 -
 4912 Provision for doubtful customers - 1,330,000
The statement of doubtful, irrecoverable and litigious credits is given below:
Customers Debts Tax Provision as at Settlement Observation as at 31/12/2015
inclusive 31/12/2014
Sama 1,431,000 70% 357,750 Provision increase to 40%
Luma 1,311,750 30% 834,750 For good
Effa ? ? 178,875 Provision 40%
Charls Disappear without trace
Joseph 596,250 (1)
Total 4,889,250

(1) The balance sheet f Joseph provides the following information

Assets Liabilities
Cash at bank 774,775 Super – privileged creditors 977,850
Cash in hand 1,920,600 Privilege Creditors 775,125
Ordinary Creditors (Including LENJO) 1,178,000

Work Required
a. Determine the debt and the rate of provision of customer Effa on 31/12/2014(4mks)
b. Prepare the statement of doubtful customer as at 31/12/2015 (8mks)
c. Show the entries emanating from the statement prepared in question 2 (8mks)

5. The detail of doubtful debts is as follows:

CUSTOMER Debts Tax Inclusive Provisions Settlement Observation as at 31/12/2015
01/01/2015 2014 in 2015
TEBO 2 385 000 1 600 000 0 Insolvent
KISEE 2 981 250 1 000 000 596 250 Carry the provision to 40% of the debt
Mr GEWADA, debtor of 4 770 000FCFA disputes the amount of his debt. He agrees to pay only 60%. The case
is presently in court.
Work Required:
a. Prepare the statement of Doubtful customers for 2015 (APPENDIX 3) (3 Marks)
b. Do the end of year adjustments for REAL VENTURES relative to Provisions for 2015 (2 Marks)

6. .

You are about to be sent on an academic internship as part of your professional training program to become an
accountant. Imagine you succeed to secure one with an accounting firm. Your professional supervisor decides to test
your competences in the field of inventory works. As a result, you are presented with the file of a major client,
ABBUVALLAH Plc. as at 31/12/2018

 State of securities of ABBUVALLAH as at 31/12/2018

TITLES QTY UNIT VALUE AS AT VALUE AS AT

PURCHASE 31/12/2017 31/12/2018
PRICE
INVESTMENT EYERE SHARES 1 500 10 000 12 000 12 500
SECURITIES NJOMBE SHARES 2 600 8 500 9 000 8 000
NDOBO SHARES 6 000 11 000 9 500 11 500
MARKETABLE MANYU SHARES 25 6 500 8 000 6 000
SECURITIES SPRINGS SHARES 80 12 000 12 500 11 500
NABICCO SHARES 65 8 000 15 000 19 500
  State of customers of ABBUVALLAH as at 31/12/2018

Customer DEBT Provisions 2017 Settlement Observation

NGOH 457 920 15% 357 750 Probable loss 25%
EDOUBE 488 925 28% 214 650 Hope to recover 186 030fcfa
DINGA 329 130 23% 248 040 Hope to recover 70%
MUKONTSO 362 520 30% 238 500 Estimated loss 28 680Fcfa
GEAH 620 100 20% 488 925 Untraceable
KARIUKI 548 550 32% 259 965 Reduce provision by 5%
TANGSI 560 475 - - Insolvent*
ETA 298 125 - - irrecoverable
*TANGSI’S balance sheet extract shows a total real asset of 19 975 000Fcfa, as well as privilege and ordinary
creditors of 4 475 000Fcfa and 25 500 000Fcfa respectively. ABBUVALLAH is a privilege creditor.
 A computer equipment with a value of 2 385 000FCFA was received by ABBUVALLAH. The invoice for the
transaction has not yet been received.
 An ordinary loan of 1 000 000FCFA was granted by NFC Bank on 30/01/2018 at an interest rate of 15%
compounded annually.
 Office stationary purchased for 120 000FCFa has been consumed by 80%
 On the salaries of December 2018 an employee was wrongfully paid 185 000FCfa instead of 135 000FCfa.
 Invoice No 448 sent to customer Njock for services rendered amounting to 1 200 000FCfa covers the period
from 01/09/2018 to30/08/2019.
 On the 01/04/2018, the service bus was exchanged at its net book value against a delivery van valued at
20 000 000Fcfa (before VAT) and expecyed to be usefuf for the next 4 years. The exchange price was settled
by cheque on the same day. (see appendix 1)

Work Required: Demonstrate your skills in the professional practice of accounting by:

a. Completing appendices 1, 2 and 3, and hence;

b. Doing the end of year adjustments for ABBUVALLAH as at 31/12/2018

Appendix 1 : Statement of Fixed Assets as at 31/12/2018 before end of year adjustments

FIXED ASSETS Original Date of Life Rat Accumulated Net Book Depreciation Depreciation
Value Acquisition span e Depreciation Value Charge method
31/12/2018
Administrative 250 000 000 20 87 500 000 Constant
building
Warehouse 10//04/2012 20 4 312 500 Constant
Tractor 03/01/2015 10 9 703 125 Reducing Balance
Grinding 8 000 000 15/10/2016 4 320 000 Reducing Balance
Machine
Truck 45 000 000 01/01/2014 5 SOFTY
Service bus 21 000 000 03/10/2014 4 SOFTY
Delivery Van 20 000 000 01/04/2018 4

Appendix 2 : Statement of Securities as at 31/12/2018

SECURITY PURCHASE VALUE PRESENT VALUE PROVISIONS
QTY UP AMOUN QTY UP AMOUN OLD NEW
T T
 EYERE
INVESTMENT SHARES
SECURITIES

NJOMBE
SHARES
NDOBO
SHARES
TOTAL
MANYU
SHARES
MARKETABLE
SECURITIES

SPRINGS
SHARES
NABICCO
SHARES
TOTAL

Appendix 3 : Statement of Customers as at 31/12/2018

CUSTOMER DEBT Settlemen Balance Provisions Definititiv
t e loss
Befor VAT Befor VAT 31/12/201 31/12/201 Loss VAT
e VAT Incl e VAT Incl 7 8
. .
NGOH
EDOUBE
DINGA
MUKONTS
O
GEAH
KARIUKI
TANGSI
ETA
TOTALS
7.