UNEB UCE Accounts Past Paper 1994

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UNEB UCE Accounts Past Paper 1994

UNEB

UGANDA NATIONAL EXAMINATIONS BOARD

UCE Accounts Past Paper 1994

SECTION A: (20 marks)

1. Which of the following is regarded as a nominal account?

a) Capital account

b) Machinery account



c) Depreciation account

d) Kwesiga enterprises ltd account

2. Which of the following will not be shown on a statement of account?

a) Cash discount

b) Trade discount

c) Credit notes issued

d) Total invoices issued

3. When subscriptions in arrears are settled by members of the club during the present financial period, they will appear

a) In the club’s receipts and payments account only

b) Both in the club’s receipts and payments account as well as in the final accounts

c) In the club’s final accounts only

d) Neither in the club’s receipts and payments account nor in the club’s final accounts.

4. An error in which a purchase of office machinery is debited to the purchase account is regarded as an error of

a) Commission

b) Compensation

c) Omission

d) Principle

5. Which of the following is correct accounting entry?

a) Asset reductions are debited

b) Asset increases are credited

c) Liability reductions are debited

d) Capital increase is debited

6. How would you detect that a business account on the bank is overdrawn from a cash book?

a) When the credit side of the cash book runs longer than the debit side

b) When the cash book shows a debit balance

c) When the cash book shows a credit balance

d) When the cash book shows a zero balance.

7. Given a weekly cash float of shs120, 000 and shs104, 000 is spent during the week, how much money will be re-imbursed at the end of the week?

a) Shs224,000

b) Shs104,000

c) Shs16,000

d) Shs120,000

8. Peter sold in bulk to paul on credit, paul is a

a) Debtor

b) Creditor

c) Wholesaler

d) Commission agent

9. Wabwa took goods from his business stock for personal use valued at shs100,000. The accounts affected were:

a) Purchased account and stock account

b) Drawings account and capital account

c) Stock account and capital account

d) Purchases account and drawings account

10. A current liability is the indebtedness of…………………………..to………………

a) Business; outsiders

b) Owners; business

c) Outsiders; business

d) Owners; insiders

11. When a customer deposits money on a bank account, this means

a) The bank owes money to the customer

b) The customer owes money to the bank

c) The bank has given a loan to the customer

d) The customer has paid a debit

12. A surplus is calculated in the …………………………….

a) Profit and loss account

b) Trading account

c) Income and expenditure account

d) Receipts and payments account

13. What does “a debit balance brought down in the rent income account” mean?

a) Prepaid income

b) Rent income accrued due

c) Rent income paid in advance

d) We owe the tenants some money.

14. Determine the amount of capital from the following set of accounting set accounting items:

Debtors shs100, 000, creditors shs50,000, commission income due shs21,800, cash shs45,800, bank overdraft shs120,000, prepaid rent due shs31,600 stock due shs84,000.

a) Shs251,600

b) Shs50,000

c) Shs201,600

d) Shs453,200

15. Goods sold to manaasi were debited to akole’s account. The entries to correct this error would be

a) Credit Akole’s account and debit Manaasi’s account

b) Credit Akole’s account and debit sales account

c) Credit sales account and debit Manaasi’s account

d) Credit manaasi’s account and debit Akole’s account

16. Given the cost of a machine as shs200,000 and the machine is to be depreciated by 5% per annum, using a reducing balance method, determine the amount of money that will be debited to the profit and loss account as depreciation at the end of the third year.

a) Shs10,000

b) Shs8,570

c) Shs9,025

d) Shs9,500

17. Given the following accounts (i) sales control account, (ii) trading account, (Iii) purchases ledger control account, (iv) customers’ statement of accounts, which of these require information from credit notes:

a) (i), (ii) and (iv)

b) Only (i)

c) (i) ,(ii) and (iii)

d) (i) , (iii) and (iv)

18. The sales journal is best described as:

a) Part of double entry system

b) A book of customers accounts

c) A list of credit transactions

d) A list of credit sales

19. Which of the following statements is true when a given expenditure is capitalized? It will be shown

a) In the profit and loss account

b) As a balance sheet item

c) Both in the profit and loss account and balance sheet

d) In the trading account and in the trial balance sheet

20. Debit balances in partners current account are

a) Always shown on liabilities side of the balance sheet

b) Always shown on the asset side of the balance sheet

c) Shown on either side of the balance sheet

d) Never shown in the balance sheet,

SECTION B: (80 MARKS)

21. a) List any four books of original entry.

b) From the following information enter the relevant transactions in the cash book and open up the appropriate ledger accounts.

1991

Jan 1 received a loan of shs10, 000,000 from U.C.B and banked the cheque

2 bought goods on credit from S. Kako worth shs5, 000,000

3 sold goods on credit to B.Were worth shs2, 000,000

4 paid S.Kaka shs3, 000,000 by cheque

5 returned goods to S.kaka faulty in design of shs300, 000

10 B.Were returned goods worth shs200, 000

15 withdrew shs3, 000,000 for office use

19 cash takings shs2, 500,000

20 banked shs2, 000,000

30 paid interest of 12% p.a on the loan from U. C. B by cheque.

22. Given below is Kota’s Balance as at 31st Dec. 1992

ITEMS

DR.(SHS)

CR.(SHS)

Debtors and creditors

Land and buildings (1/1/1992)

Plant and machinery (1/4/92)

Fixtures and fittings

Equipment

Motor vehicles (1/7/92)

Purchases

Returns

Discounts

Stock

Cash at hand

Cash at bank

Rent income

Sales

General expenses

capital

2,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1.500,000

2,500,000

500,000

1,000,000

1,500,000

600,000

3,400,000

1,000,000

2,000,000

600,000

2,000,000

400,000

7,000,000

16,000,000

28,000,000

28,000,000

Adjustments:

i. Unsold stock is sh3,000,000

ii. Depreciate each of the following items by 10% p. a

Land and buildings, land and machinery and the motor vehicle

iii. Shs200, 000 was received in advance for rent income.

Prepare:

Trading and profit and loss account and the balance sheet for the period ended 31st December 1992.

23. a) Mention two reasons why it is necessary to prepare a bank reconciliation statement periodically.

b)Study the following information obtained from the accounts section of Kibuye traders.

KIBUYE TRADERS

CASH BOOK (bank column only)

DATE

DETAILS

DEBBIT (SHS)

CREDIT (SHS)

BALANCE (SHS)

1.1.19992

3.1.1992

4.1.1992

6.1.1992

8.1.1992

10.1.1992

15.1.1992

20.1.1992

25.1.1992

Balance b/f

Cash

Katwe general

Merchants

No. 00254

Kibuye petrol station

(cheque)

Nateete traders

(cheque No.00524)

Cash

Foods and beverages

Okello and Family

Shop

Uganda general

Merchandise

wages

300,000

250,000

100,000

220,000

150,000

200,000

150,000

120,000

200,000

200,000 DR

500,000

750,000

600,000

700,000

500,000

500,000

570,000

450,000

250,000

UGANDA COMMERCIAL BANK

BANK STATEMENT ACCOUNT NO.001

DATE

DETAILS

DEBIT (SHS)

CREDIT(SHS)

BALANCE(SHS)

1.1.1992

3.1.1992

5.1.1992

6.1.1992

8.1.1992

10.1.1992

12.1.1992

18.1.1992

25.1.1992

Balance b/f

Cash

Katwe general

Merchants

(cheque No. 00254)

Kibuye petrol

Station (cheque)

Natete traders

Cheque No.0524)

Cash

Nateete traders

(cheque No.00524)

Foods and beverages ltd

Ledgers fees

Uganda electricity

Board

(standing order)

150,000

200,000

100,000

150,000

20,000

15,000

3,000,000

250,000

100,000

200,000

500,000

750,000

600,000

700,000

500,000

400,000

250,000

230,000

215,000

Required to:

i) bring kibuye traders cash up to date

ii) reconcile the updated cash book balance with the bank statement balance as on 25.1.92

24. okello and family stores had the following balance sheet as at 1st January 1993.

Okello and family stores

Balance sheet

As at 1.1.93

LIABILITY & CAPITAL

SHS

Capital 1,700,000

Creditors 40,000

1,740,000

ASSETS

SHS

Fixed assets

Building 1,000,000

Furniture 250,000

Current assets:

Stock 170,000

Cash at bank 270,000

Cash in hand 50,000

1,740,000

During the month of January 1993 the following transactions took place.

January 2 sold stock worth shs20, 000 for shs150,000 on credit

11 issued a cheque of shs20, 000 to one of his creditors

18 withdrew shs70, 000 from the bank for business use

22 paid for electricity bill in cash for shs50, 000

27 received more goods on credit worth shs100, 000

30 withdrew cash worth sh20, 000 for personal use

Required to:

i) Post the above transactions into the ledger accounts.

ii) Draw out the balance sheet as at 31st January, 1993.

25. The accountant of Nakavu traders prepared the following balance sheet as at 31st December, 1992 despite the disagreement of the end of the year trial balance.

NAKAVU TRADERS

Balance sheet

As at 31st December, 1992

Capital and liabilities shs

Capital 1.1.92 500,000

Add: net profit 250,000

Less: drawings (50,000) 700,000

Current liabilities

Bank overdraft 200,000

Creditors 50,000

950,000

Assets shs

Fixed assets

Land 150,000

Building 250,000

Current assets

Stock 200,000

Debtors 200,000

Cash 120,000

Suspense account 30,000

950,000

Later on the following errors were discovered.

i) An invoice amounting to shs10,000 issued to one of the customers has not been posted

ii) Goods worth shs10, 000 had been taken by proprietor for his personal use but no entries had been made to effect this.

iii) A cheque worth shs20, 000 sent to one of the trade credit suppliers to the business had been posted as a credit entry in the suppliers account.

iv) Shs15,000 in respect of December electricity bill had been included as shs25,000 in the end of year trial balance

v) Shs25,000 in respect of rent receivable had been posted to the rent receivable account as shs15,000

You are required to:

i) Correct the above errors using Nakavu traders’ journal

ii) Draw the suspense account duely balanced.

iii) Compute the adjusted net profit.

iv) Redraft the balance sheet.

26. Akol , Baale and chabo are in partnership sharing future profits and losses in the ratio 3:2:1 respectively. Interest is charged on capital and drawings at the rate of 10% per annum in each case.

AKOL

BAALE

CHABO

Capital Accounts

Drawings

Current Accounts

Sales Managers’ Salary for the year(chabo)

Shs

3,000,000

500,000

Dr. 100,000

Shs

2,000,000

400,000

Cr. 200,000

Shs

1,000,000

600,000

Cr. 400,000

2,000,000

Additional information

i) The net profits for the year 1991 was shs 4,000,000

ii) Unsold stock by 31st December 1991 was shs1,500, 000

iii) Drawings: Akol 1/1/1991

Baale 1/4/1991

Chabo 1/7/1991

Required to prepare a:

i) Profit and loss appropriation account

ii) Partners current accounts.

END

YOU MAY ALSO READ:   UNEB UCE Accounts Past Paper 2007

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