FINANCIAL ACCOUNTING
IN PRACTICE
PRACTICAL QUESTIONS IN THE GHANAIAN
PERSPECTIVE
(FOR ANSWERS TO ALL THE QUESTIONS PLEASE GO TOhttp://ssrn.com/author=1590490 AND
PURCHASE THE WHOLE QUESTIONS AND ANSWERS)
FOR
UNDERGRADUATES & DIPLOMA
STUDENTS
COMPILED BY
MR GEORGE EKEGEY EKEHA
(MBA Fin., MBA, B.Com)
i
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
, Abstract
More often that not, our accounting practices at the corporate levels have been very different from what
actually goes on in our schools and universities. Many of our graduate students in accounting get into the
real world of work and realised that whatever they learnt in the classrooms have got not much impact on
the practice of accounting in the corporate environment. It is very pathetic to see graduates in accounting
with very good honours but cannot even conduct a simple bank reconciliation investigation when they got
to the office. It is therefore becoming a normal practices to engage a fresh university graduate in an
organisation with all the financial stress on the organisation, as a result of the recruitment process, and
then spend some amount again to train them for the work environment. It is therefore s common place to
see organisations asking for several years of work experience before taking them in the job. I have heard
various youth advocacy groups in the country complaining about these demands from the recruiting
organisation stating that it frustrates the ambition of the youth. But unfortunately, nobody seems to care
about designing a strategy that would help our nations to come out of these situations and we all just
cherish complaining.
It is my intention to bring this practical (not totally though, but I am sure it would help others to start
thinking about the solutions) questions for prospective accounting graduates to test themselves on the
realities of accounting jobs. The business or corporate environments, I agreed, differ from one industry to
another and also from one particular organisation to the other. However, there are various issues which
are very common with any accounting practice, such as taxation and VAT. There is also a generally
accepted practices in the Ghanaian business environment (and Africa as a whole) which are practicable
within every organisation.
The “Financial Accounting Practices, Question and Answers” is compiled to help aspiring accounting
professionals to engage themselves in both theory and practical questions in accounting. Most of the
questions in this book are designed to help students understand some practical activities carried out by the
account officers in the corporate environments. I hope that it would be of immense help to all those who
are currently practicing accounting and still having petty problems on the job by using it as a reference
material for their jobs. I also hope that this material would go a long way to help University students in
Accounting, Polytechnic students in DBS Accounting and aspiring Professionals in any Accounting Field
in their endeavour to helping build a good Corporate Governance for this country‟s business environment
which would protect the investors‟ interest and thereby encouraging more investor to invest in the
country.
Please, contact the author for any clarification on the questions
and the answers thereof.
ii
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
, Table of Contents
CHAPTER 1 BASIC BOOKKEEPING AND ACCOUNTING PRINCIPLES............................ 1
Question 1 Atongo Sole Business.................................................................................................... 1
Question 2 FA Manyame Business Ventures .................................................................................. 2
Question 3 Bazzers Bombers Car Services ..................................................................................... 2
Question 4: Geeproperties Rentals .................................................................................................. 3
Question 5: Jennifer Agueliyah Boutique........................................................................................ 4
Question 6: Gifty Adams Showers Ltd ............................................................................................ 5
Question 7: Big Bright Business Ventures ...................................................................................... 5
Question 8: Reggis Amevor‟s Bank Reconciliation ........................................................................ 7
Question 9: Chicken John Eateries and Drinkeries ......................................................................... 8
Question 10: Suzzy and Daryl Ventures .......................................................................................... 9
Question 11: Amaglagla Business Ventures.................................................................................. 11
Question 12: Chucker and Zooloo Car Dealers ............................................................................. 12
CHAPTER 2 INCOMPLETE RECORDS AND CONTROL ACCOUNTS .............................. 13
Question 13: Prempeh Street Groceries ......................................................................................... 13
Question 14: Kwaku Agyepong Businesses .................................................................................. 14
Question 15: Volta Star Grocery Shops......................................................................................... 15
Question 16: Blow Bambaloo Retailing Ventures......................................................................... 16
Question 17: Kokompeh Spare Parts Venture ............................................................................... 17
Question 18: Kofi Ghetto Ltd Bank Reconciliation ...................................................................... 18
Question 19: Norris Walter Ltd Control Accounts ........................................................................ 19
Question 20: Ronaldo Movete Ltd Control Accounts .................................................................. 20
Question 21: Jorgbenue Ltd Reconciliation Accounts .................................................................. 21
Question 22: Akosombo Fabrics Suspense Accounts ................................................................... 23
Question 23: John Jasper Shoes ..................................................................................................... 23
Question 24: Akwapim Botanical Gardeners ................................................................................ 24
Question 25: Ablode Tomefa Trading Company .......................................................................... 25
Question 26: Mandela Amewu Ice-cream Vendors....................................................................... 16
Question 27: Euzebius Abusuapanyi Eye Clinic ........................................................................... 28
Question 28: Johnson Azaglo Conner Shops................................................................................. 31
CHAPTER 3 MANUFACTURING ACCOUNTS AND STOCK VALUATION ..................... 33
Question 29: Gomoah Rubber Producers ...................................................................................... 33
Question 30: Kangaroo Carrier Bags Plc....................................................................................... 33
Question 31: Calippo Sweets Production ...................................................................................... 34
Question 32: Bonavester Plc .......................................................................................................... 35
Question 33: Atongo Plastic Manufacturers .................................................................................. 36
Question 34: Jerry Leggs Wellington Boots .................................................................................. 37
Question 35: Borllar Waste Kitchen Accessories .......................................................................... 40
Question 36: Jonny Wood Garden Seats ....................................................................................... 42
Question 37: Sir Johayes Importers ............................................................................................... 43
Question 38: Akasanoma Vision Ltd Manufacturers .................................................................... 44
CHAPTER 4: PARTNERSHIP ACCOUNTS .............................................................................. 45
Question 39: Aba, Borbor and Chochoo Partnership .................................................................... 45
Question 40: Aba, Borbor and Chochoo Partnership II................................................................. 45
iii
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
, Question 41: Jonny, Jimmy and Jerry Business Ventures ............................................................. 45
Question 42: Messers George and Cyril Akpanaway Consultants ................................................ 46
Question 43: Azi, Nefi and Agoneh Traders ................................................................................. 46
Question 44: Piper, Dom and Jerry Trading Ventures .................................................................. 48
Question 45: Antie and Dede Chemists ......................................................................................... 49
Question 46: Olando, Jay and Simpson Confectioneries............................................................... 50
Question 47: Wawa and Mahoganey Furniture Producers ............................................................ 51
CHAPTER 5 COMPANY ACCOUNTS ..................................................................................... 54
Question 48: Amankwah Company Ltd ........................................................................................ 54
Question 49: Alluwako Company Ltd ........................................................................................... 55
Question 50: Biafra Bambara Company Ltd ................................................................................. 56
Question 51: Olusegun International Plc ....................................................................................... 57
Question 52: New Generation Hoteliers Ltd ................................................................................. 58
Question 53: Alhaji Lankan Ltd .................................................................................................... 58
Question 54: Alfa and Omega Company Ltd ................................................................................ 59
Question 55: Egue Kportufe Garages Ltd ..................................................................................... 60
Question 56: ZoomVultures Ltd, Developers of Cleaning Products ............................................. 61
Question 57: Motorway Jumpers Transportations ......................................................................... 62
Question 58: Amazing Freddy Company Ltd ................................................................................ 64
Question 59: Cazmil Public Limited Company (Plc) .................................................................... 65
Question 60: Suleman Garibah Company Ltd ............................................................................... 66
Question 61: Gasu Quofie Plc Farm Equipments .......................................................................... 67
CHAPTER 6 FUNDAMENTAL ACCOUNTING CONCEPTS ................................................ 69
Question 62: Nature and Purpose of SSAPs .................................................................................. 69
Question 63: Fundamental Accounting Concepts ......................................................................... 69
Question 64: Freddy‟s Conner, Bepos and Jargoos ....................................................................... 69
Question 65: Needs of Accounts Users ......................................................................................... 69
Question 66: Atongo, The Science Student ................................................................................... 69
Question 67: Jorgbenue Gee Plc .................................................................................................... 70
Question 68: Principles of SSAP 9 ................................................................................................ 70
Question 69: Monallissa Ltd, A Processing Company .................................................................. 71
Question 70: Logba Young Plc...................................................................................................... 71
Question 71: Suzzy Selase Gee Study Notes ................................................................................. 71
Question 72: Accounting Terminologies as per SSAP2 ................................................................ 72
Question 73: Benjamin K Onimangbori Queries........................................................................... 72
Question 74: Fundamental Accounting Concepts SSAP2 ............................................................. 73
CHAPTER 7 CASH FLOW STATEMENTS ............................................................................. 74
Question 75: Darryl Amfic Company Ltd ..................................................................................... 74
Question 76: GBEBSUK Ltd......................................................................................................... 75
Question 77: Kojo Agyeman Motor Component Plc .................................................................... 76
Question 78: Selikem Garibah Plc ................................................................................................. 77
Question 79: Nzinga Chipolopolo Plc ........................................................................................... 79
Question 80: June July Engineering Business ............................................................................... 80
iv
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
IN PRACTICE
PRACTICAL QUESTIONS IN THE GHANAIAN
PERSPECTIVE
(FOR ANSWERS TO ALL THE QUESTIONS PLEASE GO TOhttp://ssrn.com/author=1590490 AND
PURCHASE THE WHOLE QUESTIONS AND ANSWERS)
FOR
UNDERGRADUATES & DIPLOMA
STUDENTS
COMPILED BY
MR GEORGE EKEGEY EKEHA
(MBA Fin., MBA, B.Com)
i
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
, Abstract
More often that not, our accounting practices at the corporate levels have been very different from what
actually goes on in our schools and universities. Many of our graduate students in accounting get into the
real world of work and realised that whatever they learnt in the classrooms have got not much impact on
the practice of accounting in the corporate environment. It is very pathetic to see graduates in accounting
with very good honours but cannot even conduct a simple bank reconciliation investigation when they got
to the office. It is therefore becoming a normal practices to engage a fresh university graduate in an
organisation with all the financial stress on the organisation, as a result of the recruitment process, and
then spend some amount again to train them for the work environment. It is therefore s common place to
see organisations asking for several years of work experience before taking them in the job. I have heard
various youth advocacy groups in the country complaining about these demands from the recruiting
organisation stating that it frustrates the ambition of the youth. But unfortunately, nobody seems to care
about designing a strategy that would help our nations to come out of these situations and we all just
cherish complaining.
It is my intention to bring this practical (not totally though, but I am sure it would help others to start
thinking about the solutions) questions for prospective accounting graduates to test themselves on the
realities of accounting jobs. The business or corporate environments, I agreed, differ from one industry to
another and also from one particular organisation to the other. However, there are various issues which
are very common with any accounting practice, such as taxation and VAT. There is also a generally
accepted practices in the Ghanaian business environment (and Africa as a whole) which are practicable
within every organisation.
The “Financial Accounting Practices, Question and Answers” is compiled to help aspiring accounting
professionals to engage themselves in both theory and practical questions in accounting. Most of the
questions in this book are designed to help students understand some practical activities carried out by the
account officers in the corporate environments. I hope that it would be of immense help to all those who
are currently practicing accounting and still having petty problems on the job by using it as a reference
material for their jobs. I also hope that this material would go a long way to help University students in
Accounting, Polytechnic students in DBS Accounting and aspiring Professionals in any Accounting Field
in their endeavour to helping build a good Corporate Governance for this country‟s business environment
which would protect the investors‟ interest and thereby encouraging more investor to invest in the
country.
Please, contact the author for any clarification on the questions
and the answers thereof.
ii
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
, Table of Contents
CHAPTER 1 BASIC BOOKKEEPING AND ACCOUNTING PRINCIPLES............................ 1
Question 1 Atongo Sole Business.................................................................................................... 1
Question 2 FA Manyame Business Ventures .................................................................................. 2
Question 3 Bazzers Bombers Car Services ..................................................................................... 2
Question 4: Geeproperties Rentals .................................................................................................. 3
Question 5: Jennifer Agueliyah Boutique........................................................................................ 4
Question 6: Gifty Adams Showers Ltd ............................................................................................ 5
Question 7: Big Bright Business Ventures ...................................................................................... 5
Question 8: Reggis Amevor‟s Bank Reconciliation ........................................................................ 7
Question 9: Chicken John Eateries and Drinkeries ......................................................................... 8
Question 10: Suzzy and Daryl Ventures .......................................................................................... 9
Question 11: Amaglagla Business Ventures.................................................................................. 11
Question 12: Chucker and Zooloo Car Dealers ............................................................................. 12
CHAPTER 2 INCOMPLETE RECORDS AND CONTROL ACCOUNTS .............................. 13
Question 13: Prempeh Street Groceries ......................................................................................... 13
Question 14: Kwaku Agyepong Businesses .................................................................................. 14
Question 15: Volta Star Grocery Shops......................................................................................... 15
Question 16: Blow Bambaloo Retailing Ventures......................................................................... 16
Question 17: Kokompeh Spare Parts Venture ............................................................................... 17
Question 18: Kofi Ghetto Ltd Bank Reconciliation ...................................................................... 18
Question 19: Norris Walter Ltd Control Accounts ........................................................................ 19
Question 20: Ronaldo Movete Ltd Control Accounts .................................................................. 20
Question 21: Jorgbenue Ltd Reconciliation Accounts .................................................................. 21
Question 22: Akosombo Fabrics Suspense Accounts ................................................................... 23
Question 23: John Jasper Shoes ..................................................................................................... 23
Question 24: Akwapim Botanical Gardeners ................................................................................ 24
Question 25: Ablode Tomefa Trading Company .......................................................................... 25
Question 26: Mandela Amewu Ice-cream Vendors....................................................................... 16
Question 27: Euzebius Abusuapanyi Eye Clinic ........................................................................... 28
Question 28: Johnson Azaglo Conner Shops................................................................................. 31
CHAPTER 3 MANUFACTURING ACCOUNTS AND STOCK VALUATION ..................... 33
Question 29: Gomoah Rubber Producers ...................................................................................... 33
Question 30: Kangaroo Carrier Bags Plc....................................................................................... 33
Question 31: Calippo Sweets Production ...................................................................................... 34
Question 32: Bonavester Plc .......................................................................................................... 35
Question 33: Atongo Plastic Manufacturers .................................................................................. 36
Question 34: Jerry Leggs Wellington Boots .................................................................................. 37
Question 35: Borllar Waste Kitchen Accessories .......................................................................... 40
Question 36: Jonny Wood Garden Seats ....................................................................................... 42
Question 37: Sir Johayes Importers ............................................................................................... 43
Question 38: Akasanoma Vision Ltd Manufacturers .................................................................... 44
CHAPTER 4: PARTNERSHIP ACCOUNTS .............................................................................. 45
Question 39: Aba, Borbor and Chochoo Partnership .................................................................... 45
Question 40: Aba, Borbor and Chochoo Partnership II................................................................. 45
iii
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
, Question 41: Jonny, Jimmy and Jerry Business Ventures ............................................................. 45
Question 42: Messers George and Cyril Akpanaway Consultants ................................................ 46
Question 43: Azi, Nefi and Agoneh Traders ................................................................................. 46
Question 44: Piper, Dom and Jerry Trading Ventures .................................................................. 48
Question 45: Antie and Dede Chemists ......................................................................................... 49
Question 46: Olando, Jay and Simpson Confectioneries............................................................... 50
Question 47: Wawa and Mahoganey Furniture Producers ............................................................ 51
CHAPTER 5 COMPANY ACCOUNTS ..................................................................................... 54
Question 48: Amankwah Company Ltd ........................................................................................ 54
Question 49: Alluwako Company Ltd ........................................................................................... 55
Question 50: Biafra Bambara Company Ltd ................................................................................. 56
Question 51: Olusegun International Plc ....................................................................................... 57
Question 52: New Generation Hoteliers Ltd ................................................................................. 58
Question 53: Alhaji Lankan Ltd .................................................................................................... 58
Question 54: Alfa and Omega Company Ltd ................................................................................ 59
Question 55: Egue Kportufe Garages Ltd ..................................................................................... 60
Question 56: ZoomVultures Ltd, Developers of Cleaning Products ............................................. 61
Question 57: Motorway Jumpers Transportations ......................................................................... 62
Question 58: Amazing Freddy Company Ltd ................................................................................ 64
Question 59: Cazmil Public Limited Company (Plc) .................................................................... 65
Question 60: Suleman Garibah Company Ltd ............................................................................... 66
Question 61: Gasu Quofie Plc Farm Equipments .......................................................................... 67
CHAPTER 6 FUNDAMENTAL ACCOUNTING CONCEPTS ................................................ 69
Question 62: Nature and Purpose of SSAPs .................................................................................. 69
Question 63: Fundamental Accounting Concepts ......................................................................... 69
Question 64: Freddy‟s Conner, Bepos and Jargoos ....................................................................... 69
Question 65: Needs of Accounts Users ......................................................................................... 69
Question 66: Atongo, The Science Student ................................................................................... 69
Question 67: Jorgbenue Gee Plc .................................................................................................... 70
Question 68: Principles of SSAP 9 ................................................................................................ 70
Question 69: Monallissa Ltd, A Processing Company .................................................................. 71
Question 70: Logba Young Plc...................................................................................................... 71
Question 71: Suzzy Selase Gee Study Notes ................................................................................. 71
Question 72: Accounting Terminologies as per SSAP2 ................................................................ 72
Question 73: Benjamin K Onimangbori Queries........................................................................... 72
Question 74: Fundamental Accounting Concepts SSAP2 ............................................................. 73
CHAPTER 7 CASH FLOW STATEMENTS ............................................................................. 74
Question 75: Darryl Amfic Company Ltd ..................................................................................... 74
Question 76: GBEBSUK Ltd......................................................................................................... 75
Question 77: Kojo Agyeman Motor Component Plc .................................................................... 76
Question 78: Selikem Garibah Plc ................................................................................................. 77
Question 79: Nzinga Chipolopolo Plc ........................................................................................... 79
Question 80: June July Engineering Business ............................................................................... 80
iv
© 2011 – GeeConsult, Contact: Email Tel: +233 249529947 George Ekegey Ekeha
Get a Copy at http://ssrn.com/abstract=1750802
