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    Acc201 Marking Scheme (Corrected)

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    FA

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    Acc201 Marking Scheme (Corrected)

    Uploaded by

    ancestorsage
    5 views3 pages
    FA

    Original Title

    Acc201 Marking Scheme(Corrected)

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    FA

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views3 pages

    Acc201 Marking Scheme (Corrected)

    Uploaded by

    ancestorsage
    FA

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ACC201 MARKING SCHEME

    Question 1 Answer
    a. STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER, 2022
    N’000 N’000
    Non-current Asset
    Building 245
    Mototr vehicle 120
    365
    Current Asset
    Inventory 200
    Receivables 100
    Cash 130
    430
    Less: Current liability (130) 300
    665
    Financed by:
    500,000 Ordinary shares 500
    Revaluation gain(building) 45

    Loan(@10% per annum) 120

    665 (15 marks)

    Question 2 Answer
    Share of profit
    Total G H Z
    N N N N
    Notional salary 150,000 50,000 - 100,000
    Notional interest 96,000 40,000 32,000 24,000
    246,000 90,000 32,000 124,000
    Residual profit 900,000
    G 450,000
    H 300,000
    Z ---- ----- ----- 150,000
    1,146,000 540,000 332,000 274,000 (12 marks)

    b. Partnership deed is a formal agreement drawn up to regulate the business conduct between partners in a partnership
    business. (3 marks)

    Question 3 Answer

    i. The importance of business entity which operates and generates income from
    different departments are:
    a. Compare the results of the different departments (2 marks)
    b. Ascertain the contribution of each department to the overall profit or loss
    (2 marks)
    c. Provide attention-directing information which will assist the owner or management
    in formulating policy (2 marks)
    1
    d. Reward of reprimand departmental manager on results shown. (2 marks)
    Any three (3) above

    ii. Examples of business entities which have need to prepare departmental accounts are:

    a) Large general stores having separate departments such as Frozen Foods, Household
    Appliances, Cosmetics and Toiletries, Books and Stationery etc .
    (2 marks)
    b) Firm of chartered accountants which have audit department, tax department,
    bankruptcy department etc.
    (2 marks)
    c) Insurance companies which are required by law to prepare separate accounts for the
    different classes of insurance business undertaken by them such as life, marine, motor,
    fire, burglary and theft etc. (2 marks)

    iii. The role and importance of insurance policy to business entities;

    Insurance policy is used to cover for trade loss, under the insurance policy for loss of inventory, an
    insurance company, for a consideration known as premium, undertake to indemnify a business entity
    for items lost to fire or other hazards (3 marks

    QUESTION 4 ANSWER
    Cost of inventory lost to fire is calculated as follows
    Gross profit = 25% of cost
    As a proportion of sales, gross profit = (25/(25 +100)) = 20%
    Sales = N140,000
    Therefore gross profit = 20% of N140,000 = N28,000
    Cost of sales = 80% of N140,000.00 = N112,000

    N
    Opening inventory 16,000.00
    Purchases 115,000.00
    131,000.00
    Cost of sales (112,000.00)
    Closing inventory 19,000.00
    Actual closing inventory (2,000.00)
    Inventory lost in the fire 17,000.00

    Question 5
    N N
    Cash in hand at beginning 100
    Bank balance at the beginning 2,400
    Receipts 51,700
    54,200
    Payment to employees 3,400
    2
    Payment to suppliers 38,200
    Cash in hand at the end of the year 150
    Closing balance at the end of the year 5,200 46,950
    Drawings 7,250 (15 marks)
    Question 6
    a. Goodwill is an intangible non-current asset that has no physical or material existence and can not be touched.
    But they provide expected future benefits. (3 marks)
    b. Types of goodwill
    Inherent goodwill and purchase goodwill. (2 marks)
    c. This is simply based on the fact that a trial balance drawn up at the end of an accounting period is required
    (10 marks)

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