ordinary level 2026 South West mock international financial accounting 2

ordinary level 2026 South West mock international financial accounting 2

ordinary level 2026 South West mock international financial accounting 2

 

  1. The following transactions took place in the month of October 2024:

  • Jan – 1: Opened bank account with 25,000,000CFAF, cash at hand 500,000CFAF

  • 3: Made cash purchases 200,000CFA

  • 5: sold goods for cash 600,000CFAF

  • 7: Received cheque from Odelia 875,000CFAF allowed her discount 25,000CFAF

  • 9: Paid Cindy on account by cheque 485,000CFAF and was allowed discount of 15,000CFAF

  • 10: Purchase of furniture for cash 800,000CFAF

  • 12: Drew cheque for petty cash 100,000CFAF

  • 14: Received interest on investment by bank transfer 750,000CFAF

  • 16: Paid Levy-Bruh in full settlement by cheque 480,000CFAF and was allowed a discount 20,000CFAF

  • 19: Paid for advertisement 350,000CFAF by cheque

  • 22: Received from Faith 990,000CFAF by cheque and allowed her discount 20,000CFAF

  • 28: Paid salaries 1,200,000CFAF by cheque

  • 31: Paid rent to landlady 420,000CFAF by cheque

Required

  • a) Prepare a suitable cashbook (16 marks)

  • b) Give two differences between discount allowed and discount received. (4 marks)

    (Total 20 marks)


  1. The following accounts with their respective balances are extracted from the books of SK entity as at 31/12/2015.

Accounts CFAF
Capital 19,800,000
Drawings 4,200,000
Purchases 21,600,000
Sales 38,300,000
Sales Return 300,000
carriage outward 1,200,000
discount allowed 800,000
discount received 900,000
Debtors 3,100,000
Creditors 4,200,000
stock 1/1/2025 7,800,000
rent paid 6,000,000
rent received 2,000,000
general expenses 2,300,000
long term loan 2,700,000
loan interest 450,000
Wages 10,800,000
fitting and fixtures at cost 14,500,000
bank overdraft 5,150,000

Additional Information:

  • Stock as at 31/12/2015 was valued at 8,100,000CFAF

  • The tenant owes 400,000CFAF rents for the 2015 financial year

  • The rent paid includes 500,000CFAF for the next financial year 2016.

  • Wages was outstanding by 80,000CFAF as at 31/12/2015

Required:

  • a. Prepare the trial balance as at 31/12/2015 before adjustments. (6 marks)

  • b. Prepare the income statement of SK Entity as at 31/12/2015 (7 marks)

  • c. Establish the statement of financial position of SK Entity as at 31/12/2015 (7 marks)

    (Total 20 marks)

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