__, g- 11 ILI-114R REDEEMER'S UNIVERSITY P.M.B 230, EDE, OSUN COLLEGE OF : MANAGEMENT AND SOCIAL SCIENCES DEPARTMENT OF: FINANCIAL STUDIES PROGRAMMES — ACCOUNTING, ECONOMICS AND BUSINESS ADMINISTRATION COURSE CODE/TITLE: ACC 101 — INTRODUCTION TO FINANCIAL ACCOUNTING I FIRST SEMESTER EXAMINATIONS 2017/2018 SESSION INSTRUCTIONS ON CHOICE OF QUESTIONS TO BE ANSWERED: ANSWER QUESTION No 1 AND ANY OTHER THREE (3) QUESTIONS TIME ALLOWED: 2 HOURS, 30MINUTES Question one (a)Define and explain Accounting (b)State and explain five qualities of a good Accounting information? (c) Describe five functions of an accountant Capital 6000 1270 13250 90000 345 (8 marks) (5 marks) (5 marks) (4 marks) (10 marks) Question Two (a) Insert the missing figures in the table below: Assets Liabilities 10000 3000 5000 130000 16000 4535 125 15653 4532 4000 1000 (b) State and explain five accounting concepts. Describe five source documents. 1 Question Three (a) What is contra entry? (3 marks) (b) Write up a two-column cash book from the following details, and balance off as at the end of the month: March 1. Balances brought down from last month: 11 Cash in hand 1500 Cash at bank 20000 March 2 Paid water charges by cheque 1000 March 3 Paid for postage stamps in cash 500 March 5 Cash sales 7000 March 7 Cash paid into bank 6000 March 8 We paid 'faiwo by cheque 700 March 10 We paid Samuel in cash 200 March 12 Joseph pays us 41500, 1/ 500 being in cash and 111000 by cheque March 17 Cash drawings by proprietor 2000 March 20 Pade pays us by cheque 900 March 22 Withdrew 1/2000 from the bank for office use March 24 Bought a new motor van for #1900 cash March 28 Paid rent by cheque 4000 March 31 Cash sales paid direct into the bank 1000 March 31 Bank all cash with exception of #100 (11 marks) Question four (a)What are the subsidiary books? (4 marks) (b)State and explain five subsidiary (10marks) Question five (a) What is Bank Reconciliation Statement? Explain four reasons for the differences between Cash book and bank Statement. (6 marks) (b) On 31st of March, 2016 Jesuloba's Cash book showed a debit balance of #39,340 in the Bank Account. The bank Statement of the same date showed a credit balance of #68,955. When Comparing the Cash book with the Bank Statement the following differences were found: (i) Cheques for #7,645 had been paid into the bank on 31st March but were not credited by the bank until the following day. (ii) Cheques for #28,435 had been drawn but not yet presented for payment Op Bank Charges of #550 appeared on the Bank Statement but not in the Cash Book (iv) A Standing Order of #500 to the trade protection society payable on the 24th January had been paid by the Bank but not entered in the Cash Book (v) Dividend of #9,875 collected and credited by the bank did not appear in the Cash Book. You are required to bring the Cash Book up to date and then prepare a Bank Reconciliation Statement as at 31st March, 2016 to reconcile the two balances. (8 marks) 2 explain six errors not affecting the agreement of the trial balance (6 marks) extracted from the books of Samuel and sons on 30th September, Question 6 (a) What is trial balance? State and (blf he following balances were 2017. Prepare a trial balance. Capital Purchases Sales Returns outwards Returns inwards Land and building Motor van Machinery Fixtures and fittings Equipment I man Stationery Drawings Insurance Advertisement Debtors Creditors Carriage Outwards Discounts allowed Discounts received Rent Commission received General expenses Salaries /I 20500 50125 70500 170 365 7000 1025 12140 19915 16000 16000 630 90 470 210 5000 7000 110 80 300 130 700 1130 750 (8 marks) 3 Page 1 Page 2 Page 3