REPUBLIQUE DU CAMEROUN REPUBLIC OF CAMEROON DU

Paix-Travail-Patrie CAMEROUN
MINISTERE DE L’ENSEIGNEMENT Peace-Work-Fatherland
SUPERIEUR MINISTERY OF HIGHER EDUCATION
COMMISSION NATIONALE NATIONAL COMMISSION FOR THE
D’ORGANISATION DE L’EXAMEN DU ORGANISATION OF THE HIGHER
HND NATIONAL DIPLOMA (HND) EXAM

HIGHER NATIONAL DIPLOMA (HND) EXAMINATION

PROPOSED QUESTION FOR JUNE 2023 SESSION

OPTION BUSINESS, FINANCE AND MANAGEMENT

SPECIALTIES ACOUNTANCY
COURSE TITLE CASE STUDY
COURSE CODE ACY
TYPE OF EXAMINATION HND
CREDIT VALUE 14

DURATION: 6 HOURS
GENERAL INSTRUCTIONS.
You are reminded of the necessity of good English and orderly presentation of your material.
Where calculations are required, clearly show your working and be chronological in your answer.

SPECIFIC INSTRUCTIONS:
This paper comprises four independent sections:
Section A – Daily Operations;
Section B – End of year works;
Section C – Financial Analysis; and
Section D - Company Accounting.
All the questions in the paper are to be attempted.
NB: OHADA Charts of Accounts are allowed, with three-digit accounts to be used in keeping books of
accounts. All necessary workings should be shown and the related questions indicated

SECTION A: DAILY OPERATIONS (30 MARKS)

Question 1 (20 marks)
On the 12/06/2021, AMBALIJANG FC bought goods worth 2,000,000frs from ASOBO PLC
and was given invoice N0. 009. The goods were sold on the following terms:
- First and second trade discounts, 10% and 5% respectively
- Cash discount 2%
- VAT 19.25%
 - Transport paid 50,000frs.
On the 18/06/2021, ATABONG BAR purchased 20 crates of 33 Export at 6,000 frs each and 30
crates of Mutziq at 5,800 frs each from ZAMZAM ETS and invoice N0. 010. The following
terms were applicable, trade discount 5% and cash discount 1%. The delivery of this stock of
drinks was accompanied with 50 crates and each crate cost 1,500frs. Transport of 12,000frs was
billed to the customer, VAT 19.25%.
On the 01/07/2021, FRED Supermarket received credit note N0. 006 from AFRICA Shopping
relating to goods that returned. The gross amount of the goods is 800,000frs and the
characteristics of the invoice that accompanied the goods during the sale include
- Trade discount 10% and 5%
- Cash discount 2%
- VAT 19.25%
The credit note also embodied the following
- Transport paid 14,000frs
- Containers consigned 27,000frs.
Work Required:
a) Present invoice N0. 009, invoice N0. 010 and credit note N0. 006 (10 Marks)
b) Record in the books of the customers and the suppliers (Markup 20%). (10 Marks)
Question 2 (10 marks)
Tufoin Mbeng is the manager of NARA Company Bota with a basic salary of 520,000 frs. During the
month of December, she effectively worked as follows
- WEEK 1: 52 hours
- WEEK 2: 41 hours with 1 hour above 10pm
- WEEK 3: 63 hours
- WEEK 4: 60 hours with 5 hours on Sunday and 6 hours from 10pm
She is entitled to the following
- Punctuality allowance of 6,000 frs and safety allowance of 3,000 frs
- Entertainment indemnity 10,000 frs, milk indemnity 5,000 frs and transport indemnity 12,000 frs
Work Required:
a) Determine her total overtime pay for the month of December (7 marks)
b) Compute her gross salary for the month (3 marks)

SECTION B: END OF YEAR WORKS (15 Marks)

Question 3
The following information relate to WASE Enterprise for December 2017:
- Situation of Bank Account in the Books of WASE Enterprise
Date Particulars Amount Date Particulars Amount
 1/12 Bal b/d 268,000 3/12 Cheque No. 216 300,000

4/12 Cash deposit 365,000 7/12 Payment of supplies 270,000

8/12 Cheque No. 1314 400,000 14/1 Advance salaries 450,000

2

16/1 Bank transfer 190,000 20/1 Cheque No.217 220,000

2 2

20/1 Cheque No. 1315 410,000 28/1 Cheque No. 218 360,000
2 2

26/1 Cheque No. 1316 240,000 30/1 Payment of water bill 280,000
2 2

27/1 Bills for discount 420,000 30/1 Bal c/d 413,000

2 2

Total 2,293,000 Total 2,293,000

- Bank statement of BICEC LIMBE for WASE Enterprise

Date Elements Debit Credit Balance

1/12 Initial balance B/F - - 268,000

2/12 Cheque No. 1314 - 400,000 668,000

4/12 Cheque No. 216 300,000 - 368,000

8/12 Payment of supplies 270,000 - 98,000

9/12 Cash deposit - 356,000 454,000

14/12 Advance salaries paid 450,000 - 4,000

22/12 Cheque No. 1315 - 410,000 414,000

26/12 Net Bill discounted - 400,000 814,000

28/12 Payment of water bill 280,000 - 534,000

30/12 Bank interest earned - 30,000 564,000

31/12 Bank charges 50,000 - 514,000

Required:
a) Present the Bank reconciliation statement on 31/12/2017. (10 marks)
b) Make the adjustment entries for the bank reconciliation. (5 marks)
SECTION C: FINANCIAL ANALYSIS (25 Marks)
 Question 4

Fokou enterprise is a mixed enterprise which exercises both commercial and industrial activities. An
extract of the trial balance after inventory is presented as follows

a/c n o Description debit credit

6011 Purchase of goods in the region 30000000

6012 Purchase of goods off region 50000000

6021 Purchase of raw materials in the region 40 000000

6022 Purchase of raw materials off region 110 000 000

6031 Variation of stock of goods 4000000

6032 Variation if stock of raw materials 10 000 000

6033 Variation of stock of other supplies 500000

605 Other purchases 3500000

608 Purchase of containers 4500000

6015 Transport on purchase 600000

612 Transport on sales 200000

614 Transport of personnel 300000

616 Transport of envelops 100000

618 Other transport expenses 300000

62 External services A 2000000

63 External services B 1000000

641 Direct taxes and rates 2500000

645 Indirect taxes and taxes 3500000

646 Registration duties 1200000

648 Other taxes and rates 1800000

65 Other expenses 600000

66 Personnel expenses 1400000

671 Interest on borrowing 250000

673 Discounts granted 50000

675 Discounting bill of exchange 100000

681 Operating depreciation 4500000

691 Operating provision 1500000

7011 Sales of goods in the region 96000000

7021 Sales of finished products in the region 195000000

72 Fixed production 10 000 000

736 Variation of stock of finished products 5000000

773 Discounts received 1000000

81 Book value of disposal of fixed assets 3800000

82 Income from disposal of fixed assets 4000000

83 Expenses OOA 1500000

84 Revenue OOA 1300000

85 Provision and depreciation OOA 600000

86 Provision and depreciation written back OOA 400000

87 Personnel participation 3000000

89 Income tax 6083000

Work required: calculate the significant managerial balances and present the income statement
using annex 1
a) Gross Margin
b) Value Added
c) Gross Operating Surplus
d) Operating Result
e) Financial Result
f) Ordinary Activity Result
g) Off Ordinary Activity Result
h) Net Result
 i) Profit And Loss Account

SECTION D: COMPANY ACCOUNTING (30 Marks)

Question 5
KANKABA PLC operates with an authorized capital of 25,000,000 FCFA. This company’s
management decided to call up 80% of the share capital on the 01/01/2009 and this call was
respected by all the shareholders.
The statute of the company states that the profit after tax is to be deducted is as follows:
- Constitute the legal reserve as stipulated by the law.
- 6% of capital is giving to shareholders as statutory interest.
- On the balance, the General Assemble may decide on the endowment of an optional
reserve.
- After the endowment of the optional reserves, a super dividend of 7% of capital is
shared to the shareholders and the eventual balance is carried forward.
For the year ended 31/12/2021, the net profit before tax was 7,400,000 FCFA and optional
reserve decided by the shareholders was 600,000 FCFA. The capital is distributed as follows;
- Kango 15,000,000 FCFA
- Dailla 7,500,000 FCFA
- Padi 2,500,000 FCFA
Required:
a) Present the table of profit appropriation (13 marks)
b) Do the journal recordings of the appropriation (7 marks)

Question 6
On the 01/01/2010, a company decided to increase its capital to 40,000 shares by the issue of
new shares paid up in cash. The company balance sheet as at 31/12/2009 is presented as follows
Assets FCFA Liabilities FCFA
Fixed Assets 146,986,000 Share capital (20,000 shares) 200,000,000
Current Assets 214,514,000 Reserves 80,000,000
Long term loans 40,000,000
Current liabilities 41,000,000
Total 361,500,000 Total 361,500,000

The issue price of the new shares is 13,500frs.

Work Required:
i) Compute the market value of a share after the capital increase (5 marks)
ii) Determine the subscription right attached to each share. (5 marks)
Annex 1
PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED DECEMBER 31 N
N Period N-1 Period
Ref Headings Note
NET NET
TA Sales of goods A + 21
RA Purchases of goods - 22
RB Variation of stocks of goods +/- 6
XA COMMERCIAL MARGIN
TB Sales of Manufactured Products B + 21
TC Works, Services Sold C + 21
TD Accessory Revenues D + 21
XB TURNOVER (A + B + C + D)
TE Stored Production (or issued) +/- 6
TF Self-Constructed Assets 21
TG Operating Subventions 21
TH Other Revenues + 21
TI Transfer of Operating Expenses + 12
RC Purchases of Raw Materials and related stores - 22
RD Var of stocks of raw mat and related stores +/- 6
RE Other Purchases - 22
RF Variation of stocks of other supplies +/- 6
RG Transport - 23
RH External Services - 24
RI Taxes and rates - 25
RJ Other Expenses - 26
XC valued added (XB –( RA + RB + SUM TE TO
RJ)
RK Personnel Expenses - 27
XD GROSS OPERATING SURPLUS (XC + RK) 28
TJ Dep, Impairments & Provisions written back + 28
RL Dep, Impairments Losses & Provision Exp. - 3C&28
XF OPERATING RESULT (XD + TJ to RN)
TK Financial and Related Revenues + 29
TL Financial Depreciations and Provisions WB + 28
TM Transfer of Financial Expenses + 12
RM Financial and Similar Expenses - 29
RN Financial Dep, Impairments & Provisions Exp. - 3C&28
XF FINANCIAL RESULT (Sum TK to RN)
XG ORDINARY ACTIVITY RESULT (XE + XF)
TN Revenues from disposal of fixed assets + 3D
TO Other E. O Activities Revenues + 30
RO Accounting Values of Disposal of Fixed Assets - 3D
RP Other E. O. Activities Expenses - 30
XH OOA RESULT (Sum TN to RP)
RQ Employees profit sharing scheme - 3D
RS Income Tax -
XI NET INCOME (XG + XH + RQ + RS)