This is An Accountant Post Exam done in Local government Entities, at NYARUGENGE 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 the Government and Privates Institutions.
WRITTEN TEST FOR SECTOR’S ACCOUNTANT -NYARUGENGE District
A vehicle had been bought by the sector for rwf 50,000,000 on February 1,2015with 8 years expected
life. The expected salvage value after 8 years is rwf 2,000,000 through straight line deprecation method.
Which entries will you record on September 30, 2017 in case the sector sells the vehicles for rwf
32,000,000on that day?(instruction :the accounting period ends every December 31st).
On December31, 2014, the following information is available to help you produce upcoming year
budget for the sector (with assumption that all budgets cover a set of 12 months starting January 1):
Year 2015 budgeted revenues (in Rwandan francs)
|I T E M S||QUARTER 1||QUARTER 2||Q U A R T E R 3||QUARTER 4|
|P r o p e r t y t a x e s||10,000,000||8,000,000||12,500,000||8,000,000|
|R e n t a l t a x e s||2,000,000||2,500,000||3,000,000||4,000,000|
|B u s i n e s s l i c e n s e t a x||12,000,000||14,000,000||15,000,000||15,500,000|
|Cash from sector’s auditorium hall rent||7,000,000||3,500,000||15,000,000||11,000,000|
|O t h e r s e c t o r s e r v i c e s||600,000||400,000||550,000||150,000|
- The sector’s policy requires all taxpayers to pay 70% before the last date ending the last month of quarter in which taxes are due, and 30% remaining before 15th of the first month of the following quarter, whereas other cash from sector’s services is collected as services are performed.
- The auditorium cash rent is collected in three installments, 50% in quarter by which the hall is rented out, 30% in the next quarter and the remaining balance in the second quarter from the quarter by which rent applied.
- The 2014 year-end receivables include property taxes: RWF 2,000,000;rental taxes :RWF 7,000,000 and
business license taxes :RWF 5,000,000.they include as well receivable accounts from hall rent of
RWF10,000,000(Rwf7,000,000 to be collected in the first quarter ,and RWF 3,000,000 in the second
quarter in the next year)
On the other side, the Miller Company that operates on the sector’s territory has promised to contribute
28% of its budgeted margin of safety sales amount for each quarter, regardless changes that may occur
in its sales budget realization, as a contribution to the sector’s development. The amount will be deposited
on the sector’s bank account on the sector’s account on the first date of the quarter following the quarter
of sales, include January1, 2015.
The miller company’s unity‘s sales are budged as follows for the year 2015:
|QUARTER 1||QUARTER 2||QUARTER 3||QUARTER 4|
|UNIT SALES||9 , 0 0 0||1 0 , 0 0 0||4 , 5 0 0||8 , 0 0 0|
For the year 2014, the following data are applicable for the miller company: sales price per unit: RWF 25, unity variable cost: RWF 9; fixed expenses per quarter: RWF 30,000. The following changes are expected in 2015: Due to quality improvement that is expected to start with January 1, 2015, the unity variable will increase by RWF 6.Moreover, for gaining a good share market, the miller company is planning to advertise its products thought TV, the channel that it has never used before, and the expected advertisement cost will be RWF 15,000 per quarter. The unit sales price will remain RWF25per unit and 9,500 units have been sold all through the 4th quarter/2014.
Prepare the sector’s cash collection schedule for the upcoming year (2015) both in quarters and in total for the year.
The sector has just received the monthly bank statement at october31 from the bank of Kigali, and the statement shows an ending balance of RWF 2,050,000.Listed on the statement are an sectors’ hall rent collection from a debtor of RWF 400,000;a bank service charges of RWF 12,000,two NSF cheques totaling RWF 74,000and a RWF 9,000 charges for printed cheques. In reviewing its cash records the sector identifies outstanding checks totaling RWF 467,000 and an October 31 deposit in transit of RWF 1,788,000.During October ,the sector accountant has recorded a RWF290,000 issued cheque by debiting and crediting the right accounts for RWF29,000.The sector’s account shows an October 31 cash balance of RWF 3,327,000.
Prepare the bank reconciliation at October 31
End of EXAM !