Advanced level 2025 South West mock corporate accounting 2
Advanced level 2025 South West mock corporate accounting 2
| 1. | ||
| Elements | 10.000,000 10,000,000 | |
| Software and trade marks | ||
| Undeveloped lands | 3,500,000 | 6,500,000 |
| 22,500,000 8,500,000 |
20.000,000 5,500,000 |
Buildings _ |
| Manufacturing equipment | 10,500,000 | |
| 8,000,000 | Inventory | 3,000,000 |
| 5,000,000 | suppliers Loans from financial institutions |
5,000,000 |
| 3,000,000 | ||
| The contributions were paid as follows: | . | |
| > At formation the legal minimum was paid with formation expenses tax inclusive includes legal fees of | ||
| 119,250 advertising expenses; 71,550 and registration duties 143,100 CFAF | ||
| > The 4th quarter was called on the 1/6/2024 and before the call, account 109 had as debit balance 25,000,000 | ||
| CFAF | ‘ |
^ During the call of the 4th quarter, shareholders were given up 30/09/2024 to meet up with their commitment
or else a lateness interest of 5% will be added. By 31/10/2024 Mr. KENAH a holder of 180 shares had not
brought in his contribution and his shares we sold to Mr. NDIVE at 12,000 CFAF per shore and commission
of 50,000 CFAF was charged.
Required:
a) Determine the number of shares in kind
b) Determine the capital
c) Determine number of shares in cash and total number of shares
d) Journalise the formation and the 4th call of capital knowing that all payment were by bank cheque and VAT
19.25%
(2 marks)
(4 marks)
(4 marks)
(10 marks)
(Total 20 marks)
2. The following accounts were extracted from the balance sheet of GILEAD PLC as 31/12/2022 before profit
appropriation:
Account No. Name Amount
101 Share capital 12,500,000 (1 )
1 1 1 Legal reserves 36,000,000
129 Debit balance brought forward 3,400,000
131 Net profit 52,400,000
( 1 ) The last quarter of the capital was realised on 01/05/2022;
The statutes of the company stipulate the following concerning the sharing of profit
P Constitution of legal reserves according to the law
P Distribution of statutory interest of 6%
> On the balance, statutoiy reserve and optional reserve of 6,575,000 CFAF,optional reserve of
7,500,000 and a carried forward 925,000 CFAF.
Required:
a) Prepare a table of profit appropriation
b) Make journal entries knowing that net dividend was paid by bank cheques after deducting 16.5% as personal
income tax on securities
(16 marks)
(4 marks)
(Total 20 marks)
3. VAM VAM with share capital of 100,000,000 fully paid decided to carry out a double simultaneous increase of
capital by incoiporation of optional reserve and the issue of new cash shares at 13,200 FCFAFper share.The
following were extracted before the increase in capital
| Account | Amount |
| Statutory reserves | 45,000,000 |
| Optional reserves | 35,000,000 |
| Debit balance brought forward | 5,000,000 |
| Over values on fixed assets | 25,000,000 |
| Expenses incurred per share during the increase of capital amounted to 1,200 CFAF After the double simultaneous increase, the share capital amounted to 185,000,000 CFAF The new cash shares were fully paid up during the increase.The nominal value of a share is 10,000 CFAF |
