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WAEC SSCE - Financial Accounting - 2022 (Essay)

Question 1 Report

a. The authorized and issued share capital of Ozideli Limited comprised 400,000 ordinary shares of Le 1 each and 100,000 8% preference shares of Le 1 each. The trial balance at the end of the year was as follows:

Trial Balance as at 31st December 2018

Dr Cr
Le Le
Sales1,500,000
Purchases1,000,000
General expenses280,000
Debenture interest8,400
7% Debentures120,000
Ordinary share capital400,000
8% Peference share capital100,000
Plant and machinery at cost160,000
Motor vehicle at cost70,000
Profit and loss account (31/12/17)8,600
Creditors172,400
Debtors500,000
General reserve10,000
Provision for depreciation:
Plant and Machinery;20,000
Motor vehicle10,000
Bank22,600
Stock (31/12/17)300,000
2,341,0002,341,000

Additional information:
(i) Stock on hand at 31/12/2018 was Le 400,000;
(ii) The directors were to receive remuneration of Le 70,000;
(iii) Depreciation is to be calculated on plant and machinery at Le 32,000 and motor vehicle at Le 14,000;
(iv) The directors decided to transfer Le 12,000 to general reserve;
(v) Preference dividend for 2018 will be paid on 10/01/2019.

You are required to prepare:

Trading, Profit and Loss and Appropriation Account for the year ended 31st December 2018;

b. The authorized and issued share capital of Ozideli Limited comprised 400,000 ordinary shares of Le 1 each and 100,000 8% preference shares of Le 1 each. The trial balance at the end of the year was as follows:

Trial Balance as at 31st December 2018

Dr Cr
Le Le
Sales1,500,000
Purchases1,000,000
General expenses280,000
Debenture interest8,400
7% Debentures120,000
Ordinary share capital400,000
8% Peference share capital100,000
Plant and machinery at cost160,000
Motor vehicle at cost70,000
Profit and loss account (31/12/17)8,600
Creditors172,400
Debtors500,000
General reserve10,000
Provision for depreciation:
Plant and Machinery;20,000
Motor vehicle10,000
Bank22,600
Stock (31/12/17)300,000
2,341,0002,341,000

Additional information:
(i) Stock on hand at 31/12/2018 was Le 400,000;
(ii) The directors were to receive remuneration of Le 70,000;
(iii) Depreciation is to be calculated on plant and machinery at Le 32,000 and motor vehicle at Le 14,000;
(iv) The directors decided to transfer Le 12,000 to general reserve;
(v) Preference dividend for 2018 will be paid on 10/01/2019.

You are required to prepare:

Balance sheet as at that date

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