Paper one

1)The principle which states that every transaction, there must be at least one debit and a
corresponding credit entry is called?

A) Machine principle
B) Balancing principle
C) Book keeping principle
D) Double entry principle

Question 2,3 and 4 are based on the following information

Credit sales 1 400 000F

Purchases 400 0000F

Carriage on purchase 100 000F

Sales returns 600 000 F

Purchase returns 200 000F

1) The turnover for the period is?

a) 2 000 000f
b) 1 400 000f
c) 1 900 000f
d) 600 000f
2) What is the gross profit?
a)1 600 000f
b) 1 500 000f
c) 1 300 000f
d) 1 400 000f

4) if the cost of carriage on purchase amounted to 350 000frs,what will be the net profit?

a) 1 950 000f

b) 1 350 000f

c) 1 650 000f

d) 1 550 000f

5) which of the following is not a subsidiary book?

a) General journal

b) purchase ledger

c) sales journal

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 d) cash book

Question 6-10 is based on the following table

The situation of fixed assets before inventory 31/12/2019.constant method.

Assets Acquisition O.V Life span Rates Acc. NAV

date depreciation
Equipment 01/01/2004 12 000 000 10 years ………………. …………………… ……………….
A
Equipment 31/12/2003 ……………… ……………….. ………………. …………………… 56 250
B
Equipment …………………. ………………… ………………… 6.25% 4 875 000 …………………
C
TOTAL 40 000 000 20 950

6) the rate of equipment A is?

A) 10%

B) 20%

C) 30%

D) 5%

7) The accumulation depreciation of equipment A is?

a) 4 800 000f

b) 1 200 000f

c) 5 600 000f

d) 7 200 000f

8) The life span of equipment B is?

A) 7 years

B) 8 years

C) 20 years

D) 12.2 years

9) the date of acquisition of equipment B is?

A) 01/01/2002

B) 31/12/2002

C) 01/12/2002

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D) 31/11/2002

10) The original value of equipment B is?

A) 11 000 000
B) 12 000 000
C) 13 000 000
D) 14 000 000

11) An interest of 40 000frs was given to a petty cashier for the month of may, 2013, he spent24, 000F
for minor expenses. The amount to be reimbursed to be reimbursed to the petty cashier on the
01/06/2013 will be:

A) 40 000frs
B) 24 000frs
C) 16 000frd
D) 64 000frs

12. Given 701 sales of goods 33 800frs, 601-purchase of goods19 000frs,6031-variation of stock
500frs,1321-gross margin on goods will be:

A) 53 300frs
B) 14 300frs
C) 14 800frs
D) 52 800frs

13. A system of recording that make use of several auxiliary journals is known as?

A) Classical auxiliary system

B) Centralized system
C) Auxiliary system
D) Standard system

14) What is the accounting concept which states that “anticipate no profit and provide for all possible
losses”?

A) Accrual concept
B) Matching concept
C) Prudence concept
D) Realization concept

15) Which of the following statement is true in financial accounting?

A) Capital plus drawings amount to assets

B) Assets plus liabilities amount to capital
C) Lon-term liabilities plus assets amount to capital
D) Capital plus liabilities amount to assets

16. Expenses on minor repairs on building were posted to building account. This is an error of:

A) Omission

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 B) Complete reversal
C) Principle
D) Compensation

17. The cost of goods purchased by cash was wrongly debited to sales account and credited to cash
book. The entries necessary to correct this error are:

A) Dr purchase account and Cr cash book

B) Dr sales account, Cr cash book
C) Dr purchases account; Cr sales account
D) Dr purchases account; Cr suspense account

18. A machine is pushed on credit. Which of the following statement is true?

A) Assets and liabilities are increased

B) An asset is increased while a liability is decreased
C) One asset is increased while another asset is decreased
D) One asset is increased while another asset is also increased

19. The accounting entries to record provision for doubtful debts are?

A) Dr bad debt account; Cr profit and loss account

B) Dr profit and loss account; Cr provision for doubtful debts account
C) Dr profit and loss account; bad debts account
D) Dr profit and loss account; Cr debtors account

20. The gross amount of an invoice is 7 000 000frs. The invoice has the following conditions: trade
discount of 50%, cash discount of 25%, and VAT 19.25%.the net amount payable is:

A) 6 517 000frs
B) 7 771 520frs
C) 7 930 120frs
D) 6 650 000frs

21. Atabong enterprise paid insurance expenses of 1 500 000frs that runs from the 01/01/2012 to
31/12/1013.Insurance expenses debited to the profit and loss will be:

A) 300 000frs
B) 1 500 000frs
C) 1 000 000frs
D) 1 200 000frs

22. How many hours of work are normally required from an employee in a month?

A) 173.33 b) 40 c) 160 d) 56

23. A manufacturer produces cost goods at the cost of 100 000frs,adds a markup rate of 20%(that is 20
000frs)and resells it to a wholesaler for 120 000frs.on which amount will the state collet VAT?

A) On 100 000frs
B) On 7 000frs

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 C) On 20 000frs
D) On the difference between 120 000frs and 20 000frs

24. Acha enterprise sold goods on credit to fonkwe enterprise to be paid in 60 days. The two parties
however latter agree to to create a promissory note. Acha and fonkwe shall be respectively known as?

A) Subscriber and payee

B) Supplier and issuer
C) Payee and subscriber
D) Subscriber and customer

25. A company paid a one year insurance policy on a vehicle from the 1 st august 2014 to 31st july 2015
for 900000F. the amount of prepaid expense is?

a) 900,000F b) 375,000F c)525000F d)450, 000F

use the following information to answer the questions 26 and 27.

A customer bought goods for 500,000F on credit on the 15 march 2014. The ash discount conditions on
the invoice are as follows. 2% for 30 days, 3% for 15 days and 5% for 10 days.

26) the amount payable by the customer if payment is made on the 20 th of march is

a) 475,000F b) 500,000F c) 490,000F d) 485,000F

27) the amount payable by the customer if payment is made on the 30 th of march is?

a) 457,000F b) 458,000F c) 490,000F d) 485,000F

28) which of the following is the correct entry in the books of songs venture, a supplier of the building
material for the transaction below. Sales of cement and zinc for 159.000F to Mr. Austin F, (ignore VAT)

a) debit 701, sales account 159,000F and credit 601 purchases of goods 159,000F

b) debit 411 customers 159000 and credit 401, suppliers 159000

c) debit 601 purchases of goods 159,000F and credit 701 sales of goods 159000

d) debit 411 customers 159000F and credit sales of goods 701 159,000F

29) what is the main objective of business enterprise?

a) production of goods for the market

b) production of services for the market

c) maximization of cost

d) maximization of profits

use the following data to answer question 30,31, 32, 33.

You are given the following invoice number 116 0f June 30 th 2015

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 c/ tam enterprise; invoice number 116.30 th june 2015

Goods 800,000F

Rebates 10% and 5% ……………

Commercial net

Cash discount 2% ……………..

Financial net ………………

30) the total rebate to be deducted will be

a) 80,000F b)116,000F c)36,000F d)684,000F

31) determine the commercial net. A) 720,000F b) 684,000F c)764,000F d) 769,000F

32) what is the value of the cash discount? a) 13680F b) 16000F c)14,400F d) 13400F

33) calculate the financial net payable A) 754,600F b) 748,000F c)670320F d) 734,400F

34) personnel expenses constitute? A) expenses incurred in purchasing services b) expenses incurred in
paying temporal workers c) the salary of the self employed persons. D) expenses incurred by the
enterprise for its employees

35) the term inventory refers to a) stock of goods for resale b) items bought for the enterprise owns
use c) non current assets of the enterprise d) all the assets of the enterprise

36) what is the purpose of bank reconciliation statement? A) to determine the balances to be included
in the statement of financial position b) to determine the balance of the bank statement c) to
establish an agreement between the depositor bank account balance and the balance on the bank
statement d) to determine the value of the unprecedented cheques.

37) if the cost price of goods is 90,000 and the selling price is 120,000F, what is the margin? A) 30% b)
33.33% c) 25% d) 75%

38) working capital means a) the amount of capital invested by the proprietor b) the excess of the
current assets over the current liabilities c) the capita less drawings d) the total fixed asset less
current assets

39) accrued expenses at the end of the year are treated in the balance sheet as ? a) current assets b)
current labilities c) debtors d) creditors

40) the primary function of accounting is to a ) record economic information b) classify and record
business transactions c) provide basis for decision making d) to make profits

41) a leger account having a credit balance brought down means? A) the debit total is greater than the
credit total b) the credit total is greater than the debit total c) the debit an d the credit totals
are equal d) there’ s an omission in the debit side of the ledger account

42) a reduction to make in favour of the customer who settled his account within a given period of time
is called? a) trade discount b) rebates c) cash discount d) bonus

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43) when the totals of the trial balance do not agree the difference should be a) transferred to the
balance sheet b) written off against the profit and loss account c) entered in the suspense account
d) entered in the capital account

44) OHADA means a) organization and harmonization of African business law b) organization for the
harmonization of African duties and activities c) organization and harmonizing business law in Africa
d) organization for the harmonization of business law in Africa

45) the OHADA treaty was signed on? a) 17 th October 1993 b) 1st January 2001 c) 1st January 19993
d) 17th October 2001

46) OHADA came in to force in Cameroon on a) 17 th October 1993 b) 1st January 2001 c) 1 st January 1993
d) 17th October 2001

47) the OHADA treaty was signed in a) Senegal b) Mauritius Islam c) Cameroon d)
France

48) which of the following countries is not a party of the OHADA treaty? A) Senegal b) Comoros c)
Tchad d) France

49) prepaid expenses are treated in the balance sheet when establishing financial statements as a)
current assets b) fixed assets c) current liabilities d) long term liabilities

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 Paper two

This paper is made up of two sections. You are required to answer three questions from OHADA
accounting and two questions from British accounting. You are required to present clear and detailed
calculations where necessary. Accounting plans and non -programmable calculators are allowed.

(Answer all questions from this section)

1) On November 30th 2017, GOSHEN PLC received a bank statement from Zion bank showing a credit
balance of FCFA 1,080,000. the same day, the bank account kept by the enterprise showed accredit
balance of 850000F.

On comparing the bank statement with the bank account, the following were noticed.

- A credit transfer of FCFA 1650000 from customer Jabez was not recorded in the bank account.

- Cheque no 0507 drawn on jepthah of 890000F was not in the bank statement.

- A standing order for rent of FCFA 125000 is not found in the bank statement.

- Bank interest received of FCFA 50000was in the bank statement but was not recorded in the
bank account.

- Cheque no 0775 of FCFA 750000 deposited by GOSHEN in November 30 th was not seen in the
bank statement

- Bank charges of FCFA 35000 was not seen in the bank account.

Work required

Establish a bank reconciliation statement on the 31/11/17. (12 marks)

Record the adjustment entries in the journal of GOSHEN. (8 marks)

2)You are given the following information concerning an invoice issued by NEAKOR enterprise to NICKY
enterprise on 20th July 2009.

NEAKOR

P O Box 565 Tiko

Invoice N005

NICkY Enterprise

PO Box 969, Muyuka

Date 20/07/2009

Gross amount …………………………

Trade discount 5% ……………..............

Commercial net 380 000

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 Cash discount 2% ………………………..

Financial net ………………………..

Transport paid 7600

VAT 19,25% …………………………

Net amount payable

On the 21/07/2009 NICKY complained that they had been overcharged. then issued a credit note no
006 to NICKY on the 22/07/2009 reducing the commercial net on the invoice by 25%. Transport was not
included in the credit note.

Work required

1)complete the invoice n005 and establish the credit note n007

2) record the two documents in the books of;

I) NICKY enterprise

ii) NEAKOR enterprise

3.You have been assigned to calculate the overtime pay of Kang Vincent a category 10 worker at MILI
MINI Enterprise and to determine his gross salary. His normal working hours per week are 40 and his
monthly salary is 700,000FCFA. The following information is available. Kang worked as follows for
February 2009

 Week1; 43 hours including 2 hours on Sunday.

 2nd week 49 hours

 3rd week; 40 hours plus 3 hours’ night duty

 4th week; 60 hours

Work required

a) Determine his normal hourly pay (3marks)

b) Determine his overtime amount using the overtime distribution table (10 marks)

c) Determine total take home for the month of February (3 marks)

d) Differentiate between i)piece rate and wage rate (2 marks) ii)prolongation and recover hours ( 2
marks)

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 Section B

Answer any two questions

1)Consider the following table which shows the statement of financial position equation.

ASSETS (FCFA) LIABILITIES(FCFA) CAPITAL(FCFA)

a 10,000,000 7,000,000 ----------
b ----------- 800,000 600,000
c 10,000,000 ---------- 9,000,000
d 200,000 ------------ 50,000
e --------------- 200,000 8000,000
f 675,500 325,000 ------------
g 1,715,000 1,267,500 --------------
h --------------- 467,500 100,000
i --------------- 49,000,000 110,000,000

Work required

a)Copy and complete the gaps I the table above(15 marks)

b)what is an enterprise and how are enterprises classified in Cameroon?(5 marks)

2)in May 2011, the following transactions were carried out by the petty cashier of SONAC Enterprise

Date Particular FCFA

May 1 Received imprest 40,000

May 1 Bought postage 4,000

stamps

May 2 Taxi fare 2000

May 2 Donation to charity 1000

May 3 Purchase ledger 7,000

May 4 Bought inks and 5,500

pens

May 4 Paid for tea, milk 5,500

and sugar

May 5 Bought cleaning 1,500

material

May 6 Paid office cleaners 10,000

May 7 Sunday fare 1,600

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Work required

i)Design an analytical petty cash book and record the above transactions

ii)Balance off the petty cash book and carry down the balances. renew the imprest on the 4 th June 2011.

iii)show the journal entries in the petty cash book.

3)Peter’s Enterprise presents the following balance sheet at the beginning of the month of march 2019.

Raw material 950,000F Building 1,500,000F, goods 1,250,000F customer 200,000F, bank 200,00F, cash
100,000F Capital 3,000,000F, loan 650,000F Supplier 550,000F.

During the period the following transactions took place

3/3 purchase of goods by cheque 432000F

6/3 settlement received from customer john by cash 230,000F

12/3 purchase of fiscal stamps at 350,000F

14/3 payment of water bills 35000F, electricity bills 67,000F and telephones at 130,000F. transactions
carried out on the 14th were paid as follows; 2/5 of the totals was paid in cash and the rest by bank
cheque.

Work required

(i)Present peter’s opening balance sheet as at 1/3/19 (2marks)

(ii) record the transactions which took place during the month in a classical journal. (5 marks)

(iii)Draw up the ledger accounts of all transactions during the month of march (10 marks)

(iv) draw up the two columns trial balance (3 marks)

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