(1i) Sales Day Book USES This is a book of original entry in which credit sales are recorded before posting to the ledgers. in the sales day book, cash transaction must not be recorded. illustration Sold goods to Roger Milla on credit (1ii) Purchase Day Book USES This is the book for recording goods bought on credit from the suppliers and are done monthly or weekly. Illustration Goods brought from Coca cola (1iii) Purchase Returns Book USES This is the book for recording goods returned to the suppliers as a result of one reason or another. Illustration Returned Goods to Coca Cola (1iv) Sales Return Journal USES This is used to record goods returned by customers. it maybe due to wrong color, wrong type, inferior quality or breakage Illustration Returned Goods from Roger Milla(2a) -Preference Share are shares which have preference right to some reasonable level of profit before other share While Ordinary shares are shares which carry the remaining profit after other shares have been paid -Preference share have no voting right While ordinary share have voting right -Preference share have redemption right While Ordinary share have no redemption right -Preference share have fixed dividend rate While ordinary share received dividend last. (2bi) When shares are issued at par: This is a situation whereby shares are quoted at the nominal price, i.e. the nominal value is equal to the issuing price.The company will be able to obtain adequate capital (2bii) When share are issued at premium: This is a situation whereby shares are quoted above the nominal value. i.e. the issue price is greater than the nominal value. The company will be able to use the money to offset upcoming loss (2biii) When shares are issued at discount: this is a situation whereby shares are issued below the nominal value. The company will be able to use it to raise excess capital 5) tabulate: Income & expenditure A/C Debit side: rent(7200) Dep(3510) salaries(48000) exps(6570) lecture(9000) surplus(35700) 109980 Credit side: profit(27540) subscription(70 470) interest on investment(2160 ) receipt(9810) 109980 Balance sheet as at 30/4/2006 debit side: Accumulated fund(104430) surplus(35700) rent(600) subscription(25 20) 143250 credit side: furniture(31590 ) stock(5040) investment(5400 0) cash(52620) 143250 working: Rent(600+7200-6 00)=7200 furniture(31500 +3600-3510)= N31590 subscription (3750+66690+252 0-2520)=70470 (6) Statement of Affairs Tabulate Debit (DR) Opening Capital 10,500 Creditors 5,250= total 15,750 Credit (CR) Motor 6,000 Stock 3,000 Debtors 6,300 Cash 450= total 15,750 Statement of Affairs Tabulate Debit(Dr) Closing Capital 15,450 Creditor 5,700 Loan 1,500 Bills payable 900= Total 23,550 Credit (Cr) Motor 6,000 Stock 3,750 Debtors 10,200 Cash 600 Investment 3,000= Total 23,550 Statement of Profit Closing capital 15,450 Add Drawings 1,500= Total 16,950 Less: opening Capital 10,500 Add Capital 600= Total 11,100 Net Profit (16,950-11,100) =5850 =============== =============== === (8) Application and Allotment A/C Tabulate Debit(Dr) Ordinary share 800000 Ordinary Share 600000= Total 1400000 Credit (cr) Cash 14,000000= Total 14,000000 First call A/C Tabulate Debit(Dr) Ordinary share 400000 Credit(Cr) Cash 400000 Final Call A/c Tabulate Debit (Dr) Ordinary share 200000 Credit (cr) Cash 200000 Cash Book Tabulate Debit(Dr) Application and allotment 1,400,000 First call 400,000 Final call 200,000= Total 2,000,000 Credit(Cr) Balance 2,000,000= TOTAL 2,000,000 COMPLETED GOODLUCK