Shs '000' Shs '000' Computers & equipment 244,400 Delivery trucks - 1 January 2017 1,000,000 Accumulated depreciation: Furniture & fittings 147,000 Computers & equipment 53, 100 Trade payables & receivables 1,470,000 1,190,400 23,205,850 23,205,850 Additional information at 30 June 2017; 1. Inventory stood at Shs 1,065,000,000. 2. Insurance of Shs 81,600,000 was due. 3. Prepayments were; electricity Shs 7,200,000 and rent Shs 60,000,000. 4. Bad debts of Shs 20,000,000 are to be written off. Also provide for doubtful debts at the rate of 4% per annum. 5. Goods drawn of Shs 12,000,000 had been omitted from the books. 6. Depreciation is provided for at the following rates on cost, per annum; Delivery trucks 20% Furniture & fittings 10% Computers & equipment 25% Required: Prepare for Ntoroko Beverages Distributors, for the year ended 30 June 2017, a statement of (a) profit or loss. (12 marks) (b) financial position. (8 marks) (Total 20 marks)Bagagga Golf Club (BGC) has prepared the following trial balance for the year ended 31 October. 2017. Dr. Cr. Shs '000' Shs '000' Subscriptions received 221.400 Land at cost 150.000 Canteen delivery van at cost 58,500 Golf equipment 23,000 Club furniture 45,600 Canteen fridge at cost 4.500 Canteen furniture at cost 8.500 Accumulated depreciation: Canteen delivery van 11,700 Club furniture 9.120 Canteen fridge 900 Canteen furniture 1.700 Coach's salary 24,000 Gardener's wages 12,000 Rent 6 Utilities 47,770 Donations 12,450 54,500 Fundraising dinner event 43,500 Canteen sales 34,560 Canteen inventory 1 November. 2016 5.600 Canteen purchases 24,000 Accumulated fund 1 November. 2016 50,300 Canteen receivables 45,410 Canteen payables 42,050 Canteen bank balance 3.400 Club bank balance 5.9.0.0 _- m m Additional information: 1. 20% of the subscriptions received relate to life subscription which is recognisable over a period of 20 years. 2. 30% of the ordinary subscriptions relate to the forthcoming financial year. 3. Golf equipment is written off as a period cost at the end of each year. 7. 25 January, sent debit note Shs 500,000 to XY Toy Wholesalers Ltd for toys returned. Required: Prepare a cashbook and ledger accounts, and extract a trial balance for the month of January, 2017. (15 marks) (Total 20 marks) Question 4 The following information was extracted from the equipment register of Design Construction Lid (DCL) as at 1 January, 2016; Item Date of purchase Cost (Shs '000') Equipment 1 1 January, 2013 100,000 Equipment 2 30 June, 2013 80,000 Equipment 3 31 December, 2013 90,000 Additional information: 1 . Acquired equipment 4 on 1 January, 2016 Shs 240 million. 2. Acquired equipment 5 on 31 March, 2016 Shs 252 million. Imported equipment 6 on 30 April, 2016. The cost, insurance and freight value was Shs 120 million. The cost of installation was Shs 4 million. The company paid Shs 8 million and Shs 5 million in non-refundable and refundable taxes respectively. Maintenance of this equipment was being done at a cost of Shs 600,000 per quarter. 4. On 1 July, 2016 equipment 3 was traded-in at book value for equipment 7. The company paid an additional Shs 31.2 million to acquire equipment 7. 5. Equipment 2 was stolen on 30 September, 2016. The company had not taken any insurance cover for this equipment by the time the theft occurred. 6. DCL's financial year ends 31 December each year. It depreciates all equipment at 20% per annum using the straight line method. Depreciation is assumed to accrue evenly throughout the year and is time apportioned. All transactions were made through the bank. Required: Prepare the following accounts for DCL, for the year ended to 31 December, 2016: (a) Equipment. (5 marks) (b) Accumulated depreciation of equipment. (12 marks) C Equipment disposal. (3 marks) Hint: Show all the necessary workings (Total 20 marks)3. It was arranged that Opiso takes over the investments at Shs 6,000,000 as part payment of the amount due to him and the balance be settled in cash. 4. Opiso was to take his portion of un-appropriated profits and the balance to be maintained in the books. 5. Opio was to increase his capital by contributing Shs 2,000,000. 6. Opito was to contribute Shs 30,000,000 as his capital and the profit or loss was to be shared on the basis of the capital contribution of each partner. 7. The partnership uses the memorandum revaluation method to record goodwill in the books. Required: Prepare the following for the partnership as at 31 December. 2016: (i) Capital accounts (columnar format). (7 marks) (ii) Current accounts (columnar format). (3 marks) (iii) Revaluation account. (6 marks) (iv) Opening statement of financial position for Opio and Opito. (4 marks) Hint: Show all your workings. (Total 20 marks) Question 6 The following trial balance was extracted from the books of Ntoroko Beverages Distributors for the year ended 30 June 2017; Shs '000' Shs '000' Capital 5,583,010 Sales 15.592.200 Returns 273,720 504,420 Purchases 9,497,600 Discounts 138,360 105,000 Inventory 939,240 Provision for doubtful debts 30.720 Carriage outwards 273,770 Carriage inwards 709,800 Drawings 1,106,400 Flent & insurance 2,058,380 Electricity 660,600 Communication & promotion 503,400 Salaries & wages 2,311,260 Bad debts 120,480 Cash & cash equivalents 1,598,440 Furniture & fittings 300,000 4. The club depreciates non-current assets as follows: Rate (% per annum) Method Canteen van 20 Straight line Club furniture 10 Reducing balance Canteen furniture 10 Reducing balance Canteen fridge 20 Straight line 5. Closing inventory of the canteen was Shs 6,700,000. 6. The club apportions rent and utilities between the club and the canteen in the ratio of 3:1 respectively. 7. Rent and utilities outstanding at the end of the year were Shs 12,850,000. Required: Prepare for BGC, for the year ended 31 October 2017, a statement of: (i) profit or loss for the canteen. (5 marks) (ii) income and expenditure. (7 marks) (iii) financial position. (8 marks) (Total 20 marks) Question 3 (a) Explain five challenges affecting agricultural entrepreneurship in Uganda. (5 marks) (b) The following information relates to the transactions of Tom and Jerry Toy Shop for the month of January, 2017. 1. Ledger balances 1 January: Shs Hajji & Sons Ltd (credit customer) 4,000,000 XY Toy Wholesalers Ltd (credit supplier) 2,800,000 Cash at hand 650,000 Bank balance (credit) 7,600 Prepaid license (expiry 31 January, 2017) 100,000 Capital 1,942,400 2. 1 January, secured SACCO loan Shs 8,000,000 at an interest rate of 15% per annum. Interest is assumed to accrue evenly during the year. 3. 4 January, purchased goods from BCD Wholesalers Shs 4,000,000, paying by cheque. 4. 10 January, sold toys to ABC Kindergarten Shs 3,000,000 cash inclusive of 2% trade discount. 5 . 15 January, sold toys to Hajji & Sons Lid Shs 1,000,000 on credit. 6. 20 January, purchased toys from XY Toy Wholesalers Lid Shs 2,000,000 on credit.Question 5 Opio and Opiso were in partnership, sharing profits or losses equally. Their statement of financial position as at 31 December, 2016 was as follows: Non-current assets: Shs Shs Buildings 50,000,000 Machinery & tools 30,500,000 Delivery van 25,000,000 Investments 5,550,000 111,050,000 Current assets: Inventory 3, 150,000 Accounts receivable 2, 250,500 Bank 35,450.550 40.851,050 Total assets 151,901,050 Capital & liabilities: Capital accounts: Opio 28,000,000 Opiso 25,500,000 53,500,000 Un-appropriated profits 26,476,050 Current accounts: Opio (500,000) Opiso 4,250,000 3,750,000 83,726,050 Liabilities: Non-current liabilities: 10% bank loan 25,000,000 5% SACCO loan 30,000,000 55,000,000 Current liabilities: Accounts payable 13,175,000 Total capital & liabilities 151,901,050 Additional information: 1 . Opiso retired and Opito was admitted on 31 December, 2016. To determine the amount due to Opiso, assets were revalued as follows: Asset Shs Buildings 55,500,000 Machinery & tools 28,000,000 Delivery van 23,750,000 Investments 6,000,000 Inventory 4,050,000 2. The value of goodwill was agreed at Shs 6,000,000