UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA (UPSA)

DEGREE PROGRAMME

Virtual (Online) Examination Cover Sheet

STUDENTS’ SUBMISSION SHEET

END OF SECOND SEMESTER EXAMINATIONS- 2019/2020 ACADEMIC YEAR

FACULTY OF ACCOUNTING & FINANCE

DEPARTMENT OF ACCOUNTING

LEVEL 200

BCPC 204: PRINCIPLES OF ACCOUNTING

Start Date: Monday, May 18, 2020
End Date: Wednesday, May 20, 2020

STUDENT ID. NUMBER: 10095109

GC-021-2038/ SO/B/1105
GPS/PHYSICAL ADDRESS OF THE STUDENT:

COURSE SUBMISSION EMAIL ADDRESS: BCPC204@upsamail.edu.gh

______________________________________INSTRUCTION(S):

ATTEMPT ALL QUESTIONS

Ai. The polices of kasabrunu Enterprise are:

1. The accountant records only transaction that can be valued in monetary terms in the books of
account.

2. The produces financial information at regular period for the perusal of Mr. Bruno.

Aii.

Concept/Principl Definition/ Explanation Reason

e

Fair Presentation It is the selection and Kasabrunu Enterprise stated its policies and
application of accounting disclosed that it deals in second-hand clothing in
policies. Presentation of kwadaso. This information will make it easy for
information in a manner which purchases of its goods. An additional
provides relevant, reliable, information was it deals with only male second-
comparable and unconditional hand clothing.
information and additional
disclose when required.

GOING CONCEPT This concept implies that the
business will continue to
operate for the foreseeable
future. There is neither the
intention nor necessity of
liquidation or significant
curtailment of its scale of
activities.
Kasabrunu Enterprise is booming and it is
expected to be in operation for a long time.
Also Mr. Odjidomi the accountant of the
enterprise has already been with the business
for 5 years.

CONCISTANCE Its states that when a firm has Mr .Odjidomi has assured Mr.Bruni that profit
chosen a method for the
accounting treatment of an declared will not be deceptive since the same
item, all similar items should be
method will be continuously used for the
treated in the same way.
frequent change in the accounting treatment of similar items.
accounting methods would lead
to misleading profits calculated
from the accounting records.

BUSINESS ENTITY This concept implies that the
CONCEPT affairs of a business are to be
treated as being quite separate
from the non-business activities
of its owners. Personal
transactions of the owner
should not be included.
When Mr. Ojidomi got home and her daughter
Sefako Ojidomi asked his father to guide her
with an assignment, Mr. Ojidomi after helping
her did not bring (non-business activities) her
daughters’ assignment into the business
activities.

MONEY Transactions are recorded in Customers purchased the goods either on credit
MEASUREMENT money terms and therefore all
 the components of the financial or outright payment with cash or cheque.
statement are expressed in
money terms.

PERIODICITY The life of an entity is divided Mr.Odjidomi prepares bank reconciliation

into short economic time
periods on which reporting statements quarterty. He then made a request
statement are fashioned.
on the 15th of march 2019 for a bank
Financial statements are to be
produced at regular intervals. statement from Obidibi commercial bank.

DISCLOSURE The financial statements of a The cash book balances of Mr. Odjidomi when
firm must include all compared with the bank statement it did not
information necessary for the agree. This is to show that the some items did
formation of valid decision by not appare in the bank statement or the cash
the users. Any information that book.
might be relevant to an investor
or creditor should be disclosed,
either in the body of the
financial statement or in the
notes attached there to.

B.

PURCHHASE ORDER:

It is used to advice a supplier of particulars of goods required to be purchased. We need to tell our
supplier (Osimeyo and brothers) that we need 1500 goods.

PAY (PAYMENT VAUCHER)

Documents on which particulars of payments have been duly authorized or approved by responsible
officials. Mr. Ogboro is the purchasing officer of (KE) therefore an authorize person to make approval

INVOICE

This is a document that involves only credit transaction, it is sent by a seller to his customer showing
details of goods sold by the seller. (KE) is buying its goods on credit so it needs a purchase invoice and
much match the purchase order.
Ci

1.UNPRESENTED CHEQUES: cheques issued to creditors but not presented to or paid by bank. An
amount of GHS 1950000 had not been presented to the bank for payment.

2.STANDING ORDER: They are orders made by the customers to the bank to make payments on his
behalf. A standing order payment of GHS 121000 relating to telephone bills has been entered on the
bank statement had not been recorded in the cash book.

3.CREDIT TRANSFER TRANACTIONS: Amount deposited directly into the bank by debtors. A dividend
was paid directly to the bank had not been entered in the cash book.

4.DISHONOURED CHEQUES: They are cheques that are rejected because of certain reasons. A cheque
paid to the bank had been dishonored but no entry has been made into the cash book.

5.UNCREDITORED CHEQUES: Cheques issued to creditors but not presented to or paid by the bank.
some cheques for and cash deposits entered in the cash book and paid to the bank have not been
credited by the bank.

6.ERRORS AND OMISSIONS: This is where entries are mistakely entered into account. Some errors
where made during the entries.