cameroon gce A level 2024 financial accounting 2
cameroon gce A level 2024 financial accounting 2
SECTION A: OHADA FINANCIAL ACCOUNTING
ABOMBO Entity acquired a K1A truck on the 01/09/2018 and brought it into service on the 01/10/2018 with a
useful life of 5 years. Before the inventory procedures of 3 1 /12/2019
| , accumulated depreciation on the truck was | 250,000 CFAF on the basis of the sum–of–the years |
| ‘ digits method. Due to its poor performance, this truck was exchanged for a Mercedes truck on the 31/12/2019. The Mercedes costed 2 |
|
| ,800,000 CFAF before VAT and the this date to be 100,000 CFAF and the balance was paid |
Kia truck was retaken at its residual value, estimated on for by bank cheque. |
Other information provided for year–end accounting procedures as at 3 1 / 12/2019 are as lollows:
• The enterprise obtained a loan of 8,000,000F for a period of 3 years at the interest rate of 3% simple
interest per annum. The first annual interest was paid the same date ol contracting the loan on 1 07/2019.
• The electricity bill of 52 000F and the water bill of 68 000F have not yet been received. VAT 19.25%
• The enterprise has a litigation in court pending settlement with one of its customers and deems it
necessary to create a provision for litigation of 500,0001‘.
• The entity made a term deposit of 720 000F on the 1 /07/2021 at the rate of 5% simple interest for 5 years.
All the interest was received immediately.
1.
Required:
| Determine the rate of depreciation for 2018 period applied on the Kia truck, given that depreciation is |
l . |
| prorated to time. Determine the original and depreciable values of the Kia truck. |
(1.5 marks) (2 marks ) |
| Present the depreciation schedule of the Kia truck (appendix I , to be attached to your answer booklet). ill.‘ |
|
| (11.5 marks) (6 marks) (Total 20 marks) |
iv. Present all the necessary journal entries required as at the 31/12/2019 |
| 11 |
The following records of trading transactions are provided by AYOBA Pic P.O Box 126 Bamenda:
> June 20th 2021: Invoice N° S014 issued to customer BATASHI Ltd P.O Box 123 KUMBA.
S Items Sold:
2.
Cement 50 bags at 5000 per bag Ref R i l l .
Paint 20 tins at 25000 per Tin Ref P548.
Roofing sheets 100 at 4500F each Ref Y 144.
S Terms and Conditions of Trade.
First Trade Discount 5%
B Second Trade Discount 2%
Cash Discount 2% for payment within 7 days and 1% for payment within the 8l” and
the 14lh day.
– VAT 19.25%
Transport invoiced 25,000F
> October 15th 2021: Invoice N° S954 issued to a customer in Nigeria carries goods for N350.000, transport
invoiced for N50,000( 1 ), payable in 3o days.
> November 10th 2021: A credit advice is received from the bank for a transfer of N200,000 from the Nigerian
customer.
> November 14,h 2021: Credit advice from the bank for the transfer of N200,000 by the Nigerian customer as
balance on trade debt.
