101 Financial Accounting Practices: A Practical Working Questions & Answers
Table of Contents
CHAPTER 1: BASIC ACCOUNTING PRINCIPLES .................................. 3
Question 1: Wellinton Sole Proprietorship Business .................................... 3
Question 6: Jennifer Agueliyah Boutique ..................................................... 4
Question 8: Tianshi Bright Business Ventures ............................................. 5
Question 13: Chucker and Zooloo Car Dealers ............................................ 7
CHAPTER 2 INCOMPLETE RECORDS AND CONTROL ACC ............... 9
Question 17: Pangola Star Tilapia Shops ..................................................... 9
Question 22: Triple Star Company Ltd Control Accounts ......................... 10
Question 25: Emmanuel Sasakawa Meat Shop ........................................... 12
Question 29: Sight and Visions General Eye Clinic ................................... 13
CHAPTER 3 PREPARATION OF MANUFACTURING ACC .................. 16
Question 32: Kangaroo Carrier Bags Plc .................................................... 16
Question 36: Raphael Trash Manufacturer of Wheelie Bins ....................... 17
Question 40: Akasanoma Vision Ltd Manufacturers .................................. 19
CHAPTER 4: PRESENTATION OF PARTNERSHIP ACC ........................ 21
Question 42: Jonny, Ferdinand and Kwartson Business Ventures .............. 21
Question 43: George and Cyril Akpanaway Consultants ............................ 21
Question 48: Wawa and Mahoganey Carpentry Ventures .......................... 22
CHAPTER 5 PREPARATION OF COMPANY’S ACCOUNTS ................ 25
Question 50: Alluwako Company Ltd, Alluminium Products .................... 25
Question 57: ZoomVultures Ltd, Cleaners & Cleaning Products ............... 26
Question 62: Ekegey Plantations Plc Farms & Equipments ........................ 29
CHAPTER 6 FUNDAMENTAL ACCOUNTING CONCEPTS ................. 31
Question 64: Fundamental Accounting Concepts ....................................... 31
Question 67: Atongo, The Science Student ................................................ 31
Question 71: Logba Young Lions plc, Footbal Club .................................. 32
CHAPTER 7 CASH FLOW STATEMENTS .............................................. 33
Question 76: Darryl Amfic Company Ltd, Cold Stores .............................. 33
Question 78: Kingdom Furniture Plc .......................................................... 34
CHAPTER 8: STATEMENTS ANALYSIS & INTERPRETATION .......... 36
Question 82: Divine Nooque Oil Company Ltd ......................................... 36
Question 86: Kantamanto Scrappers And Melters ...................................... 38
Question 89: Kafui Akpoblu Mobile Company .......................................... 38
CHAPTER 9: PRACTICAL BRAIN TEASERS .......................................... 42
Question 92: Bamboozer Ltd, Food Distribution ........................................ 42
Question 93: JAK Waawa and JJR Boom Veterinary Services................... 43
Question 101: Amfic Yingor’s Garages ..................................................... 46
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, 101 Financial Accounting Practices: A Practical Working Questions & Answers
SUGGEATED ANSWERS ............................................................................. 47
Answer 1: WELLINTON SOLE PROPRIETORSHIP .............................. 48
Answer 5: GEEPROPERTIES RENTALS & FINANCIALS..................... 54
Answer 6: JENNIFER AGUELIYAH BOUTIQUE ................................... 54
Answer 8: TIANSHI BRIGHT BUSINESS VENTURES .......................... 57
Answer 13: CHUCKER AND ZOOLOO CAR DEALERS ....................... 59
Answer 17: PANGOLA STAR TILAPIA SHOPS ..................................... 60
Answer 22: TRIPLE STAR COMPANY LTD .......................................... 62
Answer 28: MANDELA AMEWU ICE-CREAM ..................................... 63
Answer 32: KANGAROO PLC, CARRIER BAGS .................................. 66
Answer 35: ATONGO PIONEER NAILS MANUFACTURERS .............. 68
Answer 38: NORA NUSINYO FURNITURE COMPANY ....................... 70
Answer 40: AKASANOMA VISION LTD ............................................... 72
Answer 43: MESSRS GEORGE & CYRIL AKPANAWAY ..................... 74
Answer 48: WAWA AND MAHOGANEY FURNITURE ....................... 75
Answer 52: OLUSEGUN INTERNATIONAL PLC .................................. 78
Answer 59: AMAZING FREDDY’S FOOD ............................................. 79
Answer 64: FUNDAMENTAL ACCOUNTING CONCEPTS .................. 82
Answer 65: FREDDY’S CONNER ............................................................ 84
Answer 67: ATONGO, THE SCIENCE STUDENT .................................. 86
Answer 71: LOGBA YOUNG LIONS PLC ............................................... 87
Answer 78: KINGDOM FURNITURE, PLC ............................................. 90
Answer 81: JUNE JULY ENGINEERING BUSINESS ............................. 92
Answer 82: DIVINE NOOQUE VOLUNTARIES LTD ............................ 95
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, 101 Financial Accounting Practices: A Practical Working Questions & Answers
CHAPTER 1: BASIC BOOKKEEPING AND ACCOUNTING PRINCIPLES
Question 1: Wellinton Sole Proprietorship Business
On 1 January 20 ‘5, Mr. Wellinton started business Weliware Ventures with
GH¢10,000 which he paid into the business account at Stanbic Bank in Accra
and Stock of goods valued at GH¢9,850. On the same day, he purchased a
Motor Van from Toyota Company valued at GH¢6,000 and paid half of the
amount by cheque.
The following transactions took place in the month of January:
2/01 Negotiated a Loan from Stanbic for an amount of GH¢20,000 which
was granted at an interest of 12% per annum payable monthly.
Paid GH¢7,000 by cheque as rent advance to his landlord for the
premises of the business covering a period of 10 years.
3/01 Purchased goods from GeeMerchants Ltd valued at GH¢52,000 and
paid for half of the amount by cheque, after a cash discount of 4%
4/01 Purchased Office Equipment valued at GH¢2,500 and Furniture and
Fittings valued at GH¢3,000 paying all by cheque.
7/01 Sold goods valued at GH¢8,500 for cash and paid for some stationery
valued at GH¢900 by cash.
9/01 Sold goods to Mr. Tarzan valued at GH¢6,700 who paid three quarter of
the amount by cheque.
11/01 In order to increase sales Mr. Wellinton decided to run a promotion
from 12th January to 20th January. All sales with cash payment will be
given a 5% discount and all sale of GH¢10,000 and above will qualify
for a trade discount of 6%.
12/01 Mr. James Brown came to purchase goods valued at GH¢14,500 and
paid half of the amount due by cheque, after necessary discounts. Total
cash sales for the day also amounted to GH¢8,974
13/01 Sold goods valued at GH¢5,000 to Akua Cynthia
14/01 Total cash sales for the day amounted to GH¢12,896 and cash banked
amounted to GH¢14,500
15/01 Sold goods to Malik Baako Ventures valued at GH¢16,785 who paid
half of the amount due by cash. Sent GH¢16,500 from the safe to bank.
18/01 Purchased goods from K. Gyasi Ltd valued at GH¢37,880 and paid half
of the amount due by cheque after a 5% cash discount. Total cash sales
for the day amounted to GH¢9,678
19/01 Sold goods to Honey Love valued at GH¢18,964, who paid three
quarters of the amount due by cheque. Paid GeeMerchants the full
balance on their account by cheque.
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, 101 Financial Accounting Practices: A Practical Working Questions & Answers
20/01 Total cash sales for the day amounted to GH¢18,259 and cash purchases
were also GH¢8,689. Received a cheque for GH¢4,680 from Akua
Cynthia as full settlement.
22/01 Sold goods valued at GH¢11,380 to Mr. Ugly Head who paid half of the
amount due by cash. Total cash lodged at the bank was GH¢33,860
25/01 Paid K. Gyasi GH¢8,940 by cheque on account and received final
payment by cheque from Malik Baako Ventures and cash sales
amounted to GH¢11,380.
30/01 Paid salaries of GH¢3,820 by cheque and utility bills of GH¢860 by
cash. Received a cheque for GH¢3,240 from Mr. Ugly Head as payment
on account.
At 31 January 20 ‘5 closing stock amounted to GH¢5,375.
Requirements
(a) Write up the ledger accounts using the three column cash book.
(b) Extract a trial balance at 31 January 20 ‘5
(c) Prepare a trading and profit and loss account for the months ended 31
January 20 ‘5 and a balance sheet at that date.
Question 6: Jennifer Agueliyah Boutique
Jennifer Agueliyah is a dealer in fancy designer clothes. At 1 January 20 ‘7
her ledger included the following balances.
€
Debtors 38,168
Provision for doubtful debts 6,270
Creditors 36,505
Debtors at 1 January 20 ‘7 were:
€
S Mahama 12,540
J Baafi 12,811
The Miklin Holidays 12,817
Creditors at 1 January 20 ‘7 were:
€
M Normenyo 12,058
James Nkomode 12,217
Obraku Sarpong 12,230
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