TEAM UNIVERSITY EXAMINATIONS
BOARD
SCHOOL OF GRADUATE STUDIES AND RESEARCH
MASTERS/POST GRADUATE DIPLOMA IN FINANCE
POST GRADUATE DIPLOMA IN HUMAN RESOURCE MANAGEMENT
POST GRADUATE DIPLOMA IN PUBLIC ADMINISTRATION AND
MANAGEMENT
CODE –PDF 111 : ACCOUNTING FOR MANAGERS
ACADEMIC YEAR 2021/2022
YEAR 1 SEMESTER 1
END OF SEMESTER EXAMINATION
SATURDAY 30 TH JULY 2022 9.00
AM– 112: 00 PM
INSTRUCTIONS:
i. The paper has two sections A & B
ii. Attempt one question from Section A and any Three from section B
iii. Mobile phones are not allowed in examination room
iv. Time allowed: 3 Hours
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SECTION A
Attempt one question from this section
Question 1
The following Trial Balance was extracted from the books of Batyo, a
trader, as at 31/12/2021
Trial balance Shs “000”
Shs Shs
Capital 40,000
Purchases 43,000
Sales 75,000
Land & buildings 15,000
Plant & machinery 9,000
Motor vehicles 6,000
Wages and salaries 8,900
Rent & Rates 4,300
Motor vehicle expense 1,250
Repairs to buildings 7,500
General expenses 3,550
Discount allowed 1,250
Discount received 1,072
Debtors/Creditors 13,500 8,500
Drawings 3000
Provision for depreciation on plant & machinery 4,500
Provision for depreciation on motor vehicles 2,928
Opening stock 7,500
Balance at Bank 8,250
132,000 132,000
Additional Information
i. Closing stock at 31st December Shs 8,500
ii. Provide depreciation on plant & machinery at 10% on cost;
motor vehicle 20% on written down value
iii. Expenditure on repairs to buildings worth Shs 5000 is to be
capitalized.
Required
Prepare:
a) A trading and profit and loss account for the year ended
31/12/2021.
15
Marks
b) The statement of financial position as at 31 Dec 2021.
st
10
Marks
TOTAL 25
MARKS
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Question 2
Odongo retired from Government service and started a business on 1 st
April 2020. The following were the transactions for the month of April
2020
1st April deposited his retirement cheque of shs 15,000,000 on the
business account
2nd April brought furniture from his house for business use valued at shs
200,000
3rd April paid shs 200,000 by cheque for fixture and fittings of the shop
4th April withdraw cash shs 5,000,000 from the bank and purchased goods
for resale
6th April sold goods for cash 2,000,000 and deposited the amount
immediately into the bank
7th April purchased goods for 4,500,000 on credit from kato, shs 2,500,000
from mwamba and 1,000,000 from kentunda
9th April purchased second hand equipment for shs 1,500,000 by cheque
12th April Goods returned to kato for shs 500,000
13th April sold goods on credit for shs 500,000 to papa, shs 600,000 to
john and shs 900,000 to akello
16th April paid mwamba shs 1,000,000, kentunda shs 400,000 and kato
shs 3,000,000
30th April acquired equipment valued at shs 6,000,000 from house and
equipment ltd, paid 3,000,000 by cheque and agreed to pay the balance
in June 2019
Required
a) Prepare ledger accounts to record the above transactions in the
books of odongo for the month of April 2020.
10 Marks
b) Balance off the accounts and extract the trial balance as at 30 th April
2020.
4
Marks
c) Giving examples in each case differentiate between errors of
omission and errors of commission
4 Marks
d) According to one of the graduate students, he narrated that
accounting is not an end but a process. Discuss.
7 Marks
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TOTAL 25
MARKS
SECTION B
Attempt any three questions from this section
Question 3
a) Differentiate between book keeping and accounting
3 Marks
b) What do you understand by double entry system?
3 Marks
c) Is accounting equation the same as accounting cycle? Explain.
4 Marks
d) With relevant examples, distinguish between Prime cost and
Fixed Cost.
4
Marks
e) Explain the importance of budgeting in the
organization/institution you are familiar with and clearly analyze
the main objectives of budgeting.
11
Marks
TOTAL 25
MARKS
Question 4
(a) Give a brief view of International Financial Reporting Standards. 5
Marks
(a) IAS 1 presentation of financial statements has outlined the
fundamental accounting concepts which are generally accepted in
the preparation of periodic financial accounts of business
enterprises. The standard also outlines the guideline to be applied in
the selection of appropriate accounting policies.
Required:
In light of IAS 1, describe (with examples where necessary) the
following:
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(i). Accounting bases 5
Marks
(ii). Any five fundamental accounting concepts.
5 Marks
(iii). Accounting policies 5
Marks
(iv). Guidelines which apply in selection of appropriates
accounting policies.
5 Marks
TOTAL 25
MARKS
Question 5
Team and company ltd expects to sale 10,000 units of a given
product. The variable cost per unit is 1,000 and the annual fixed
costs of 20,000,000.
a) What price would be charged in order to break-even at a given
activity level.
5 Marks
b) Using the price calculated in (a) above determine the number of
units to be sold in order to yield a profit of UGX 1,000,000.
5 Marks
c) What is the profit that will result from a 10% reduction in variable
costs and 5,000,000 decrease in fixed costs assuming that
current sales in (a) above will be maintained?
5 Marks
d) In each case and using relevant examples distinguish between
cost, expense and loss.
5 Marks
e) Explain the Factors which affect cost behaviors within an
organization.
5
Marks
TOTAL 25
MARKS
Question 6
During September, 2020 the company purchased 1,000 Kgs and used 800
kgs of material “X” as follows:
September 1, 2020; bought 400 Kgs at 60/= per Kg
September 5, 2020; used 200 Kgs of materials
September 11, 2020; bought 300 Kgs at 70/= per Kg
September 14, 2020; used 200 Kgs of material
September 21, 2020; bought 200 Kgs at 80/=
September 22, 2020; used 200 Kgs of Material
September 30, 2020; used 200 Kgs of material
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Required;
a) Determine the value of materials issued and closing stock as at
September 30, 2020 under:
i) FIFO
ii) LIFO
15 Marks
b) As an experienced student of cost accounting, clearly explain the
factors that could affect the level of stock you could keep in your stores
10 Marks
TOTAL 25
MARKS
Question 7
“The accounting equation is of fundamental importance in accounting and
underpins the entire financial recording system”
Required:
a) State the accounting equation and explain in detail its different
components.
10
Marks
b) XYZ Ltd produces a standard product Zein. The following
information relates to costs incurred by the company in December
2021.
Shs “000”
Raw materials consumed 91,000
Direct wages 29,000
Other direct expenses 11,000
Factory overheads 23,200
Office overheads 15,420
Selling and distribution 20,000
Required:
Prepare a cost statement of XYZ Ltd for production of a unit of Zein in
December 2021.
15 Marks
TOTAL 25
MARKS
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