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Tap, Sea, Air, and River are in partnership business sharing profits and losses in the ratio 8:5:4:3, respectively. Their Statement of Financial Position was as follows as at 1 January 2009:
On the date of the statement, the business was brought to an end, and the assets realized as follows:
| Assets Realized | N’000 |
|---|---|
| Motor Vehicles | 60,000 |
| Plant and Machinery | 60,000 |
| Furniture and Fittings | 52,500 |
| Inventories | 15,300 |
| Accounts Receivable | 9,450 |
Dissolution expenses amounted to N22,500,000. Air became bankrupt and could only pay 40k for every N100 owed. The other partners were solvent, and the amount was collected from Air’s administrator. Cash was returned to or received from partners as appropriate.
You are required to:
(a) State the ways in which the amount owed by Air will be absorbed by the other partners. (3 Marks)
(b) Show the necessary ledger accounts to close the partnership’s books.
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Taiwo and Kehinde entered into a joint venture to acquire packaging materials for table water production and to sell them to table water producers. They agreed to share joint venture profits or losses in the ratio 3:2, respectively.
At the outset, Taiwo sent Kehinde a cheque of N200,000 for his participation in the venture. They sold all the goods and recorded the following cash transactions:
| Taiwo (N) | Kehinde (N) | |
|---|---|---|
| Revenue | 320,000 | 210,000 |
| Traveling expenses | 32,700 | 46,300 |
| Advertising | 10,300 | 9,100 |
| Stall rent | 8,500 | 7,000 |
| Wages of casual helper | 4,800 | – |
| Sundry expenses | 5,900 | 2,900 |
| Purchases | 160,000 | 110,000 |
Settlement between the co-venturers took place by cheque.
Required:
a. Prepare the Joint Venture with Kehinde Account in the ledger of Taiwo. (5 Marks)
b. Prepare the Joint Venture with Taiwo Account in the ledger of Kehinde. (5 Marks)
c. Prepare the Memorandum Joint Venture Accounts. (5 Marks)
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The following balances were extracted from the ledger of YOHAFI College of Technology in respect of Senator Momeed Memorial Loan Fund (MMLF) as at31 December 2017
The following transactions took place in 2018:
(i.) Investment costing N30,800,000 were sold for N31,900,000; (ii.) N30,700,000 cash was received as the repayment of loans; (iii.) N2,500,000 was received from the family of a former student in full payment of a loan which had earlier been written off; (iv) N41,800,000 was given out as loan during the year; (v.) A loan of N750,000 was written-off as uncollectible; and (vi.) A sum of N3,000,000 cash was received as a gift from a former borrower.
You are required to:
a. Open necessary ledger accounts to record above transactions. (13 Marks)
b. Extract a trial balance as at the end of the period. (4 Marks)
c. Prepare a statement of changes in the fund balance. (3 Marks)
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Fina and Funke, who are in partnership sharing profits and losses in a ratio of 2:1, decided to dissolve the partnership on 31 December 2012. At that date, their statement of financial position is as follows:
Statement of Financial Position as at 31 December 2012
The partners were unable to dispose of the business as a going concern but sold the non-current assets and inventory for N483,750. Trade receivables were collected in full, and the outstanding suppliers gave discounts totaling N1,250, while the dissolution expenses amounted to N10,000.
You are required to:
Prepare necessary ledger accounts to close the books of Fina and Funke.
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a. On January 1, 2013, Ajanaku Enterprises bought a motor vehicle for N1,850,000 with an estimated life span of four years and a residual value of N50,000.
i. Determine the depreciation rate, using the reducing balance method. (2 Marks)
ii. Using the rate of depreciation derived in (i) above, calculate the amount of depreciation for the years 2013 and 2014 respectively. Also, disclose the carrying amount of the asset at the end of December 31, 2014. (3 Marks)
b. The following transactions were recorded in the books of Lexus Enterprises for the three months ended March 31, 2014.
| Date | Description |
|---|---|
| Jan. 1 | Commenced business by introducing N250,000 into a bank. |
| Jan. 5 | Bought N50,000 furniture from Adam Enterprises on credit. |
| Jan. 15 | Bought office stationery for N1,000 paying by cheque. |
| Jan. 28 | Bought goods for resale worth N25,000 paying by cheque. |
| Feb. 2 | Paid Adam Enterprises a cheque of N35,000. |
| Feb. 3 | Rent of N30,000 for business premises was paid by cheque. |
| Mar. 5 | Bought goods on credit from Jay Enterprises for N35,000. |
| Mar. 8 | Bought office stationery for N500 paying by cheque. |
Required:
i. Post the above transactions in the relevant ledger accounts and balance the accounts. (15 Marks)
(Total 20 Marks)
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On January 1, 2016, Mr. Wale commenced business as a sole trader with N10,000,000, which he paid into the business bank account. He purchased a van for N6,000,000 from Mallam Tanko and paid half of the amount due by cheque on January 2, 2016. The following transactions took place in the month of January 2016:
Required:
a. Prepare a three-column cash book. (6 Marks)
b. Prepare the ledger accounts for the transactions. (8 Marks)
c. Prepare a trial balance as at January 31, 2016. (6 Marks)
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Propati Limited has a fleet of motor vehicles that are used to distribute goods to the market. As at July 2020, the cost of the vehicles was ₦750,000,000 and their accumulated depreciation was ₦30,500,000. On January 1, 2021, the company bought a new vehicle for ₦2,800,000. One of the old vehicles, which was acquired 3 years ago at a cost of ₦1,000,000 with accumulated depreciation of ₦600,000, was accepted by the seller in part-exchange at a value of ₦480,000.
Required:
i. Calculate the gain or loss on disposal of the old car. (2 Marks)
ii. Prepare the following ledger accounts in respect of the transactions:
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Propati Limited has a fleet of cars that are used to distribute goods to the market. As at July 1, 2020, the cost of the cars was ₦750,000,000, and their accumulated depreciation was ₦30,500,000. On January 1, 2021, the company bought a new car for ₦2,800,000. One of the old cars, which was acquired 3 years ago at a cost of ₦1,000,000 with accumulated depreciation of ₦600,000, was accepted by the seller in part exchange at a value of ₦480,000. The reporting date of Propati Limited is December 31, and the entity charges depreciation using the straight-line method.
Required:
i. Calculate the gain or loss on disposal of the old car. (2 Marks)
ii. Prepare the following ledger accounts in respect of the transactions:
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Which of the following would NOT be posted to the credit of payables control account?
A. Total credit purchases
B. Transfer of credit balances from receivables’ ledger
C. Transfer of debit balances to receivables’ ledger
D. Set-off contra
E. Interest charged by suppliers
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Find Related Questions by Tags, levels, etc.
Tap, Sea, Air, and River are in partnership business sharing profits and losses in the ratio 8:5:4:3, respectively. Their Statement of Financial Position was as follows as at 1 January 2009:
On the date of the statement, the business was brought to an end, and the assets realized as follows:
| Assets Realized | N’000 |
|---|---|
| Motor Vehicles | 60,000 |
| Plant and Machinery | 60,000 |
| Furniture and Fittings | 52,500 |
| Inventories | 15,300 |
| Accounts Receivable | 9,450 |
Dissolution expenses amounted to N22,500,000. Air became bankrupt and could only pay 40k for every N100 owed. The other partners were solvent, and the amount was collected from Air’s administrator. Cash was returned to or received from partners as appropriate.
You are required to:
(a) State the ways in which the amount owed by Air will be absorbed by the other partners. (3 Marks)
(b) Show the necessary ledger accounts to close the partnership’s books.
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Taiwo and Kehinde entered into a joint venture to acquire packaging materials for table water production and to sell them to table water producers. They agreed to share joint venture profits or losses in the ratio 3:2, respectively.
At the outset, Taiwo sent Kehinde a cheque of N200,000 for his participation in the venture. They sold all the goods and recorded the following cash transactions:
| Taiwo (N) | Kehinde (N) | |
|---|---|---|
| Revenue | 320,000 | 210,000 |
| Traveling expenses | 32,700 | 46,300 |
| Advertising | 10,300 | 9,100 |
| Stall rent | 8,500 | 7,000 |
| Wages of casual helper | 4,800 | – |
| Sundry expenses | 5,900 | 2,900 |
| Purchases | 160,000 | 110,000 |
Settlement between the co-venturers took place by cheque.
Required:
a. Prepare the Joint Venture with Kehinde Account in the ledger of Taiwo. (5 Marks)
b. Prepare the Joint Venture with Taiwo Account in the ledger of Kehinde. (5 Marks)
c. Prepare the Memorandum Joint Venture Accounts. (5 Marks)
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The following balances were extracted from the ledger of YOHAFI College of Technology in respect of Senator Momeed Memorial Loan Fund (MMLF) as at31 December 2017
The following transactions took place in 2018:
(i.) Investment costing N30,800,000 were sold for N31,900,000; (ii.) N30,700,000 cash was received as the repayment of loans; (iii.) N2,500,000 was received from the family of a former student in full payment of a loan which had earlier been written off; (iv) N41,800,000 was given out as loan during the year; (v.) A loan of N750,000 was written-off as uncollectible; and (vi.) A sum of N3,000,000 cash was received as a gift from a former borrower.
You are required to:
a. Open necessary ledger accounts to record above transactions. (13 Marks)
b. Extract a trial balance as at the end of the period. (4 Marks)
c. Prepare a statement of changes in the fund balance. (3 Marks)
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Fina and Funke, who are in partnership sharing profits and losses in a ratio of 2:1, decided to dissolve the partnership on 31 December 2012. At that date, their statement of financial position is as follows:
Statement of Financial Position as at 31 December 2012
The partners were unable to dispose of the business as a going concern but sold the non-current assets and inventory for N483,750. Trade receivables were collected in full, and the outstanding suppliers gave discounts totaling N1,250, while the dissolution expenses amounted to N10,000.
You are required to:
Prepare necessary ledger accounts to close the books of Fina and Funke.
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a. On January 1, 2013, Ajanaku Enterprises bought a motor vehicle for N1,850,000 with an estimated life span of four years and a residual value of N50,000.
i. Determine the depreciation rate, using the reducing balance method. (2 Marks)
ii. Using the rate of depreciation derived in (i) above, calculate the amount of depreciation for the years 2013 and 2014 respectively. Also, disclose the carrying amount of the asset at the end of December 31, 2014. (3 Marks)
b. The following transactions were recorded in the books of Lexus Enterprises for the three months ended March 31, 2014.
| Date | Description |
|---|---|
| Jan. 1 | Commenced business by introducing N250,000 into a bank. |
| Jan. 5 | Bought N50,000 furniture from Adam Enterprises on credit. |
| Jan. 15 | Bought office stationery for N1,000 paying by cheque. |
| Jan. 28 | Bought goods for resale worth N25,000 paying by cheque. |
| Feb. 2 | Paid Adam Enterprises a cheque of N35,000. |
| Feb. 3 | Rent of N30,000 for business premises was paid by cheque. |
| Mar. 5 | Bought goods on credit from Jay Enterprises for N35,000. |
| Mar. 8 | Bought office stationery for N500 paying by cheque. |
Required:
i. Post the above transactions in the relevant ledger accounts and balance the accounts. (15 Marks)
(Total 20 Marks)
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On January 1, 2016, Mr. Wale commenced business as a sole trader with N10,000,000, which he paid into the business bank account. He purchased a van for N6,000,000 from Mallam Tanko and paid half of the amount due by cheque on January 2, 2016. The following transactions took place in the month of January 2016:
Required:
a. Prepare a three-column cash book. (6 Marks)
b. Prepare the ledger accounts for the transactions. (8 Marks)
c. Prepare a trial balance as at January 31, 2016. (6 Marks)
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Propati Limited has a fleet of motor vehicles that are used to distribute goods to the market. As at July 2020, the cost of the vehicles was ₦750,000,000 and their accumulated depreciation was ₦30,500,000. On January 1, 2021, the company bought a new vehicle for ₦2,800,000. One of the old vehicles, which was acquired 3 years ago at a cost of ₦1,000,000 with accumulated depreciation of ₦600,000, was accepted by the seller in part-exchange at a value of ₦480,000.
Required:
i. Calculate the gain or loss on disposal of the old car. (2 Marks)
ii. Prepare the following ledger accounts in respect of the transactions:
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Propati Limited has a fleet of cars that are used to distribute goods to the market. As at July 1, 2020, the cost of the cars was ₦750,000,000, and their accumulated depreciation was ₦30,500,000. On January 1, 2021, the company bought a new car for ₦2,800,000. One of the old cars, which was acquired 3 years ago at a cost of ₦1,000,000 with accumulated depreciation of ₦600,000, was accepted by the seller in part exchange at a value of ₦480,000. The reporting date of Propati Limited is December 31, and the entity charges depreciation using the straight-line method.
Required:
i. Calculate the gain or loss on disposal of the old car. (2 Marks)
ii. Prepare the following ledger accounts in respect of the transactions:
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Which of the following would NOT be posted to the credit of payables control account?
A. Total credit purchases
B. Transfer of credit balances from receivables’ ledger
C. Transfer of debit balances to receivables’ ledger
D. Set-off contra
E. Interest charged by suppliers
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