cameroon gce advanced level 2025 corporate accounting 2

SECTION A: COMPANY AND PARTNERSHIP ACCOUNTS

2

1. Green Promo Plc, (dealing in environmental protection) was created in Douala on the 5th of July 2023. Contributions were paid at the legal minimum. The nominal value of a share is fixed at 20,000 CFAF.

   After the first call, the account balance of “1011 – Capital subscribed and uncalled” had a credit balance of 240,000,000 CFAF.

   The second quarter was called on the 1st of June 2024, and shareholders had up to the 30th of June 2024 to comply.

   Mr. Ayuk, holder of 1,200 shares, did not comply. After considering Mr. Ayuk as a defaulter, was notified via a bailiff that his shares will be auctioned. The bailiff was paid the sum of 345,000 CFAF to service Mr. Ayuk with official notice on the 30/07/2024 via a bank cheque.

   The shares of Mr. Ayuk were sold on the 1st of August 2024. The shares were sold for 10,750,000 CFAF.

   On the 9th of August 2024, the company paid Mr. Ayuk the balance after charging him a lateness interest at 12% per annum for a period of one (1) month on the fraction of capital called.

   Required:

   i. Calculate the amount of the total contribution in cash at formation (2 marks)

   ii. Show the journal entries of the second call including the nonpayment of Mr. Ayuk (16 marks)

   iii. Determine the result achieved by Mr. Ayuk as a result of his nonpayment. (2 marks)

   (Total: 20 marks)

2. KHEDIRA, KIERAN and KEZIAH created a partnership on 04/08/2023 with a capital of 80 million CFAF. According to the statutes of the partnership, the capital is divided into shares of 5,000 CFAF. This capital was subscribed as follows:

   Partner’s Code

   461101

   461102

   461201

   Partner

   KHEDIRA

   KIERAN

   KEZIAH

   Contribution

   38,200,000 CFAF

   20,000,000 CFAF

   21,800,000 CFAF

   Nature

   Kind

   Kind

   Cash

   • KHEDIRA brought the statement of financial position of his sole proprietorship on 04/08/2023 as follows:

   Asset

   Goodwill

   Office equipment

   Stock of goods

   Customers

   Local bank

   CFAF

   16,000,000

   3,600,000

   10,000,000

   9,000,000

   4,200,000

   42,200,000

   Liability

   CFAF

   Capital

   38,200,000

   Suppliers

   4,000,000

   42,200,000

• KIERAN brought the following:

Transport equipment

Stock of goods

9,000,000 CFAF

11,000,000 CFAF

• KEZIAH paid cash (21,800,000 CFAF) into a bank account created in the name of the partnership with First National Bank Plc Douala

On 08/08/2023 the following formation expenses were paid by bank cheques:

Publicity expenses

Bank charges

Fees for the deed

Registration rights

240,000 CFAF

124,000 CFAF

420,000 CFAF

750,000 CFAF

1,534,000 CFAF

Required

i. Journalise the formation of the partnership up to 08/08/2023 (ignore VAT) (12 marks)

ii. Prepare the opening statement of financial position for the partnership (8 marks)

(Total: 20 marks)

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