NATIONAL OPEN UNIVERSITY OF NIGERIA
Plot 91 Cadastral Zone NnamdiAzikiwe Express Way, Jabi-Abuja FACULTY OF MANAGEMENT SCIENCES DEPARTMENT OF FINANCIAL STUDIES
COURSE CODE: ACC407 CREDIT UNIT: 3
COURSE TITLE: Accounting and Auditing for cooperatives
TIME ALLOWED: 21/2HOURS
1. Attempt question number one (1) and any other three (3).
Question number 1 is compulsory and carries 25 marks while the other 3 questions carry 15 marks each. Present all your points in coherent and orderly manner.
The following is the receipts and payments of IGAH LIKE MINDS for the year ended 31st Dec. 2019:
|Balance as at 1st January, 2019||500,000|
|Entrance fees received||70,000|
|Proceeds of Dance||260,500|
|Bank deposit interest||80,000|
|Wages paid to workers||300,000|
|Maintenance of Equipment||150,000|
|Purchase of stationery||10,000|
|Rent and rates||200,000|
|Paid into the bank account||70,000|
The following information are also relevant:
i) Rent and rates prepaid N12,000
ii) Expenses include N2,000 owing since last year
iii) Wages of N30,000 was not paid to a worker who absconded from duty as at 31st Dec. 2019.
iv) The subscriptions received include N5,000 in arrears the previous year (2018); N12,000 was paid in advance; some members did not pay theirs as at 31st Dec. 2019 amounting to N8,000.
v) The Club as at January, 2019 had the following assets: Building, N120,000; Equipment, N45,000; and Bank Balance N100,000.
vi) Depreciate Building by 10% and Equipment by 10% including the additions within the year.
a) The receipts and payment accounts of IGAH LIKE MINDS for the year ended 31st Dec., 2019
b) Income and Expenditure Accounts of IGAH LIKE MINDS for the year ended 31st Dec., 2019, and
c) A Balance Sheet as at 31st Dec., 2019.
The following transaction is in respect of Mallam Abdullahi Shehu who trades in Abuja. Jan. 1 2020. Balance of Cash at Bank N650,000
2 Sales N950,000
13 Dr. Kalu Settled his Account of N70,000 by cheque and was allowed 5% cash discount
15 Withdrew cash of N45,000. Of this amount, N20,000 was for drawings, N15,000 for wages and N10,000 for expenses.
20 Dr. Inua paid in cheque of N150,000 in full settlement of her account of N160,000.
22 Okoh J. paid cheque N70,000; Discount allowed N1,000.
25 Paid Dangote ltd N95,000 in full settlement of their account of N100,000.
29 Sales N400,000.
Prepare the Bank Cash Book of Mallam Abdullahi Shehu and balance it on 29/1/20.
a) Insert the word ‘Credit’ or ‘Debit’ in each of the blank spaces in the statements below:
i) Assets and expenses are