Advanced level 2025 North West mock corporate accounting 2
Advanced level 2025 North West mock corporate accounting 2
. PINTO PLC was created on the Is1 of January 2023 with share capital made up of contributions in kind
in cash. During formation the following contributions was made in kind:
| Commercial building | fV | 4 000 000 FCFA |
| Equipment and furniture 6 000 000 FCFA | ||
| Transport equipment Raw materials Slock of goods (Customers Supplier^ 800 000 FCFA Loan3 000 000 FCFA |
5 000 000 FCFA 3 600 000 FCFA 2 800 000 FCFA 4 400 000 FCFA |
V i (TV
The total net contributions in kind represent 40% of the share capital and the rest was cash contributions.
At formation Vi of the cash contributions was called up. Shareholders had up to the 31sl of January 2023 to
deposit the money into the company bank account opened at SGBC bank Bamenda branch by the Notary. The
following formation expenses where deducted: Notary fees 600 000 FCFA and Publicity 400 000 FCFA VAT
excluded.
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WORK REQUIRED
1.1. Determine the contributions in kind and in cash Smarks
1.2. Do the necessary journal entries for the formation of the PINTO PLC12marks
2. Amity Pic. had an extract of the balance sheet before appropriation of profit on the 31sl of December 2023
presented as follows:
| > 101 capital called up | 160 000 000 FCFA |
| > 1011 uncalled up capital 40 000 000 FCF |
|
| > Ill Legal reserve V 1181 optional reserve |
17 640 000 FCFA 25 000 000 FCFA |
| > Balance brought forward (2 640 000 FCFA) | |
| > Net profit alter tax | 28 640 000 FCFA |
Capital is made up of 10 OOOsliares of 20 000FCFA fully paid up and not amortized and 8000shares realized byVi since the sum of the year.
Article 11 of the status concerning the distribution of profit stipulates that Cithe statutory interest is calculated at
the rate of 5% after attribution of statutory reserves and a carry forward. The rest is distributed as follows:
– to shareholders as super dividend
– Statutory reserves of 5 000 000 FCFA
– Shareholders receive a total dividend of 1700FCFA per share
i
Required
(8marks)
(7xnarks)
(Smarks)
a) Present the table of profit appropriation.
b) File the Statistical and Tax Return table on profit sharing (Appendix 1).
c) Record the distribution of profit in the journal.
3.13AT1JM is a Pic. Located in Wum and specialized in the production and sales of palm oil. This company
was created on the 17/05/2021 with a capital of 180 000 000 FCFA divided into shares in kind and cash of
20 000 FCFA each.
On the 5/06/2023. the company decided to increase its capital by 60% on the basis ot the arithmetic mean of
the MV (28000) and the market price (32000) as follows:
Issue of new‘ shares in kind and new shares in cash at 24 000 FCFA
Incorporation of optional reserves with distribution of bonus shares
For the double increase of capital:
Only the older shareholders (holders of new shares included) can
