ordinary level 2026 South West mock ohada financial reporting 2

1. On the $31^{st}$ of December 2021, the following records were presented to you as the accountant of MARLIA Ltd for some verifications and adjustments:

5211-UNITED BANK OF AFRICA

Date	Description	Amount	Date	Description	Amount
Dec. 01	Initial balance	240,000	Dec. 12	Payment to supplier	420,000
Dec. 08	Cheque No 120.	312,000	Dec. 09	Payment of electricity	140,000
Dec. 11	Cheque No. 121.	225,000	Dec. 18	Advanced salary	300,000
Dec. 11	Bank transfer	350,000	Dec. 26	Payment of loan instalment	210,000
Dec. 11	Cheque No. 122	190,000	Dec. 31	Balance c/d	447,000
Dec. 11	Discounting statement	200,000

MARLIA Ltd BANK STATEMENT FOR THE PERIOD DECEMBER 01 TO 31 2021

Date	Description	Debit	Credit	Balance
Dec. 01	Balance b/f			240,000
Dec. 05	Payment to Supplier	420,000		180,000
Dec. 10	Cheque No. 120		312,000	45,000
Dec. 13	Cheque No. 121		225,000	357,000
Dec. 14	Payment of Electricity bill.	104,000		253,000
Dec. 20	Bank transfer		350,000	603,000
Dec. 21	Advance payment of salary	300,000		303,000
Dec. 24	Cheque No. 124 to supplier	110,000		193,000
Dec. 26	Bills discounted		180,000	373,000
Dec. 30	Bank charges	12,000		361,000
Dec. 31	Bank interest		50,000	411,000

Required:

• a) Using appendix 1, establish the bank reconciliation statement as at 31/12/2021. (13 marks)

• b) Present the necessary adjustment entries. (7 marks)

  (Total 20 marks)

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2. On $31^{st}$ December 2021, the situation of doubtful customers of JOKE Ltd is presented as follows:

   | Customers | Debts tax inclusive | Impairment as at 31/12/2020 | Payment made during 2021 | Observation as at 31/12/2021 |

   | :— | :—: | :—: | :—: | :— |

   | Kwalar | 667,800 | 40% | 238,500 | Provision 30% |

   | Chick | 536,625 | 30% | 178,875 | As final payment |

   | Zifack | 453,150 | – | – | (1) |

(1) Zifack, who is being wound-up, presents the following situations:

• Total real assets: 13,000,000 FCFA

• Preferential creditors (staff and state): 5,000,000 FCFA

• Unsecured creditors (including Shalom Ltd): 10,000,000 FCFA

• VAT rate is 19.25%

Required:

• a) Prepare the statement of doubtful customers as at 31/12/2021. (using appendix 3) (13 marks)

• b) Present the adjustment entries related to doubtful customers. (7 marks)

  (Total 20 marks)

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3. An enterprise based inn Douala Cameroon acquired a new transport equipment on the 01/01/2019 to be used for 5 years at the value of 10,000,000 FCFA. At the end of the useful life of the equipment, it could still be valued at scrap of 1,000,000 FCFA.

Required:

Present the depreciation schedule of the equipment using the following methods:

• a) Sum-of-Years’ Digits method (10 marks)

• b) Straight Line method (10 marks)

  (Total 20 marks)