This is An Accountant Post Exam done in Local government Entities, at GASABO District.
This exam paper is very most helpful study material in preparing your next job exam for the following job post such as: Public Finance Officers such as Public Accountants , Sector Accountants , District Accountants , Revenue Officers, Etc , Across Government and Privates Institutions.
CORRECTED WRITTEN EXAM OF SECTOR‘S ACCOUNTANT – Questions and Answers/ (50 marks)
QUESTION ONE (15 marks).
Z sector has received the month statement at October 31 from bank of Kigali, and the statement shows an ending balance of rwf 2,050,000.listed on the statement are an electronic funds transfer(EFT) rent collection of 400,000 rwf a service charge of rwf 12,000 two non sufficient fund checks totaling rwf 74,000 and a rwf 9000 charge for printed checks .in reviewing its cash records ,z sector identifies outstanding checks totaling 467,000 and an October 31 deposit in transit of of rwf 1,788,000.during October, it recorded a rwf 290,000 check by debiting salary expense and crediting cash for rwf 29,000.z sector’s cash account shows an October 31 cash balance of rwf 3,327,000.
You are required to prepare the bank reconciliation at October 31.
The bank reconciliation at October 31. in (Rwandan Francs)
Cash balance 3,327,000
Rent collection 400,000
Bank charges 12,000
Deposit n transit 1788, 000
Add: Outstanding order: 467, 000
Less: correction errors 261,000
Balance as per Bank statement 2,050,000
QUESTION TWO (20 marks)
On April 1, 2010, a building is acquired at the cost of rwf 100,000,000 with 50 years life expectancy. The accounting and tax period ends on every June 30 and there is no expected salvage value at the end life expectancy.
The double declining balance method is applied to depreciate the building, and on September 30, 2012, on administrative committee decision, the building is sold for rwf 90,000,000 cash
Required: provided the depreciation expense is recorded once every accounting period –end with adjusting entries; make necessary records on September 30, 2012.
The depreciation expense is recorded once every accounting period –end with adjusting entries; make necessary records on September 30, 2012. in (Rwandan Francs)
Depreciation: 100,000,000 – 90,000,000=10,000,000
3months 2010 30/6/2010 , 10,000,000×3÷30=1,000,000
12months 2011 30/6/2011, 10,000,000×12÷30=4,000,000
12months 2012 30/6/2012, 10,000,000×12÷30=4,000,000
3months 2012 30/9/2012 , 10,000,000×3÷30=1,000,000
DR Building A/C CR (at the time of Buying Building)
|Cash/bank 100,000, 000||Bal c/d 100,000,000|
On 30/6/2010 Cash 100,000,000 On 30/6/2010 depreciation 1,000,000
Bal c/d 99,000,000
On 30/6/2011 bal b/d 99,000,000 30/6/2011 depreciation 4,000,000
Bal c/d 95,000,000
On 30/6/2012 bal b/d 95,000,000 30/6/2011 depreciation 4,000,000
Bal c/d 91,000,000
30/9/2012 Bal b/f 91,000,000 30/9/2012 depreciation 1,000,000
Bal c/d 90,000,000
DR Disposal A/C CR
|Cost of Building 100,000,000||depreciation 10,000,000 Disposal of Building 90,000,000|
QUESTION THREE (15 marks)
Lucky Corporation has pledged to contribute for the y sector’ development . it has agreed that next year (2016) will sponsor y sector’s activities with its 10% of expected cash collection for April, May and June respectively. The Lucky Corporation has the following budgetary information concerning its credit sales for the mentioned months (in Rwandan francs):
From past experience, the Lucky Corporation has learned that 20% of a month’s sales are collected in the month of sale, another%are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored .February and March, 2016 credit sales are expected to be rwf 230,000,000 and 260,000,000 respectively.
With detailed computations, show how in your sector‘s budget, the lucky corporation’s cash contribution line for April, May, June and the total will lookalike
The lucky corporation’s cash contribution line for April, May, June and the total will lookalike in (Rwandan Francs)
Collected cash in month of
Collected in the month following sales(70%)
Collected in the second month following sales(10%)% of
sales of Feb collected% of sales of
|300,000,000 60,000,000 |
100,000,000 210,000,000 26,000,000
|1,401,000,000 200,000,000 40,000,000 350,000,000||1,000,000,000|
End of Exam!