Bank Accounts – NBC Institute

FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation

Prepare a bank cash book, retained earnings, and statement of financial position for Fehintola Enterprises.

Question

On 1 January 2011, Mrs. Fehintola decided to invest her retirement benefit of N1,000,000 in the wholesale business of Fehintola Enterprises. She lodged the amount into the business bank account and paid for the following by cheque:

Motor Van: N600,000
Warehouse fittings: N340,000
Rent: N12,500

Proper accounting records were not kept, but the financial position as at 31 December 2011 revealed the following:

Inventories of goods in the warehouse: N150,000
Trade receivables: N125,000
Cash at Bank: N751,750
Trade payables for supplies: N100,000
Accrued rent: N15,000

The following were paid for by cheque:

Electricity bill at N2,500 per quarter up to 31 March 2012
Suppliers: N1,500,000
Personal expenses: N150,000

On 31 December 2011, it was agreed that the Motor Van and Warehouse fittings should be valued at N560,000 and N320,000, respectively.

Required:

a. Prepare the Bank Cash Book (5 Marks)
b. Prepare a statement showing the retained earnings for the year ended 31 December 2011 (5 Marks)
c. Prepare the Statement of Financial Position as at 31 December 2011 (5 Marks)

Answer

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Tags: Bank Accounts, Cash Book, Financial Statements, Retained Earnings
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2012

FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors

Correct an error in recording a transaction in the books.

Question

A cheque of N5,000,000 paid to Alhaji Dalami had been correctly entered in the cash book but was omitted in Alhaji Dalami’s account. To correct this error, debit Alhaji Dalami’s account and credit
A. Cash account
B. Bank account
C. Suspense account
D. Purchases account
E. Control account

Answer

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Tags: Bank Accounts, Cash Book, Error Correction

Topic: Correction of errors
Series: NOV 2022

FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions

Describe the treatment of bank accounts and cash balances.

Question

Which of the following statements correctly describe the treatment of bank accounts and cash balances from the perspective of both the company and the bank?

A. For the company, money in the bank is an asset, and for the bank, deposits are liabilities
B. For the company, money in the bank is a liability, and for the bank, deposits are assets
C. For the company, an overdraft balance is a liability, and for the bank, overdrafts are income
D. For the company, an overdraft balance is an asset, and for the bank, overdrafts are liabilities
E. For the company, money in the bank is an asset, and for the bank, deposits are expenses

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Bank Accounts, Cash Balances
Level: Level 1

Topic: Recording Financial Transactions
Series: NOV 2023

FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation

Prepare a bank cash book, retained earnings, and statement of financial position for Fehintola Enterprises.

Question

Motor Van: N600,000
Warehouse fittings: N340,000
Rent: N12,500

Proper accounting records were not kept, but the financial position as at 31 December 2011 revealed the following:

Inventories of goods in the warehouse: N150,000
Trade receivables: N125,000
Cash at Bank: N751,750
Trade payables for supplies: N100,000
Accrued rent: N15,000

The following were paid for by cheque:

Electricity bill at N2,500 per quarter up to 31 March 2012
Suppliers: N1,500,000
Personal expenses: N150,000

On 31 December 2011, it was agreed that the Motor Van and Warehouse fittings should be valued at N560,000 and N320,000, respectively.

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Accounts, Cash Book, Financial Statements, Retained Earnings
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2012

FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors

Correct an error in recording a transaction in the books.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Accounts, Cash Book, Error Correction

Topic: Correction of errors
Series: NOV 2022

FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions

Describe the treatment of bank accounts and cash balances.

Question

Which of the following statements correctly describe the treatment of bank accounts and cash balances from the perspective of both the company and the bank?

A. For the company, money in the bank is an asset, and for the bank, deposits are liabilities
B. For the company, money in the bank is a liability, and for the bank, deposits are assets
C. For the company, an overdraft balance is a liability, and for the bank, overdrafts are income
D. For the company, an overdraft balance is an asset, and for the bank, overdrafts are liabilities
E. For the company, money in the bank is an asset, and for the bank, deposits are expenses

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Bank Accounts, Cash Balances
Level: Level 1

Topic: Recording Financial Transactions
Series: NOV 2023

Question Tag: Bank Accounts

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FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation

Prepare a bank cash book, retained earnings, and statement of financial position for Fehintola Enterprises.

FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors

Correct an error in recording a transaction in the books.

FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions

Describe the treatment of bank accounts and cash balances.

FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation

Prepare a bank cash book, retained earnings, and statement of financial position for Fehintola Enterprises.

FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors

Correct an error in recording a transaction in the books.

FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions

Describe the treatment of bank accounts and cash balances.

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FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation

Prepare a bank cash book, retained earnings, and statement of financial position for Fehintola Enterprises.

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FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors

Correct an error in recording a transaction in the books.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors"

FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions

Describe the treatment of bank accounts and cash balances.

You're reporting an error for "FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions"

FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation

Prepare a bank cash book, retained earnings, and statement of financial position for Fehintola Enterprises.

You're reporting an error for "FA – Nov 2012 – L1 – SB – Q4 – Financial Statements Preparation"

FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors

Correct an error in recording a transaction in the books.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q3 – Correction of Errors"

FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions

Describe the treatment of bank accounts and cash balances.

You're reporting an error for "FA – Nov 2023 – L1 – SA – Q16 – Recording Financial Transactions"

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