2020 ONDO STATE JOINT FINANCIAL ACCOUNTING ANSWERS

*NUMBER 1*
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1a

i. Profit is not the Criterion

ii. Surplus not Distributed among its Members
.
iii. Separate Entity
..
iv. Unique Names Connoting their Working.

V.Management by Elected Persons…

Vi.Major Funds from Contributions and donations.

Choose any 3👆👆👆

1b
*Similarities*

i.The receipts and payment accounts include both capital and revenue items while income and expenditure account include only revenue items.
Ii. Both are prepared by not-for-profit organization

*Differences*
i.Receipts and payments account contains only cash and bank transactions. Income and expenditure account contains both cash and non-cash expenses and incomes of revenue nature.
ii. Receipts and payments account is not required to prepare balance sheet. Income and expenditure account is required to prepare balance sheet.

*NUMBER 2*
2a
The cash book is used to record receipts and payments of cash. It works as a book of original entry as well as a ledger

2b
1.to know d profit n loss.
2.for tax assessment.
3.to know d asset and liabilities.
4.for parmanent record of financial transaction.
5.for planing purpose.
6.for decision making.
7.to know if a business is solvent or not.

2C
*Common source documents include:*
i.Canceled checks.
ii.Invoices.
iii.Cash register receipts.
iv.Computer-generated receipts.
v.Credit memo for a customer refund.
vi.Employee time cards.
vii.Deposit slips.
viii.Purchase orders.

*Pick any five* ☝️☝️

*NUMBER 3*

*Methods*

i. we need to find out the opening capital by preparing the opening Statement of Affairs.

ii. An opening journal entry needs to be passed to incorporate all assets, liabilities and capital in the books of accounts:
Assets …………………………. Dr
To Liabilities
To Capital (Balancing Figure)

iii The Cash Book/Cash Account should be prepared carefully to find out missing figures such as sales, expenses, drawings, closing balance of Cash/Bank