FOUNDATION OF ACCOUNTING II
LEVEL : PRE-UNIVERSITY/COLLEGE/HIGHSCHOOL
TIME: 2HRS DATE: 02 /12/2024
INSTRUCTIONS TO CANDIDATES
1. Answer Question One and any other Two questions in the answer booklet provided.
2. Do not write on your question papers. All rough work should be done in your
answer booklet.
3. Clearly indicate which question you are answering.
4. Write neatly and legibly.
5. Edit your work for language and grammar errors.
6. Follow all the instructions in the answer booklet
Page 1 of 7
, SECTION A: (COMPULSORY) TOTAL MARKS FOR THIS SECTION IS 30.
QUESTION ONE (30 MARKS)
a) Explain three conventions of accounting (3 Marks)
b) Explain how a partnership would deal with the following items in the absence of a
partner deed:
i. capital contribution
ii. share of profit and losses
iii. interest on capital
iv. drawings by partners (8 Marks)
c) Outline the components of prime cost in preparing a manufacturing account. (3 Marks)
d) Explain four limitations of financial ratios as a tool of analyzing financial statements.
(8
Marks)
e) Distinguish between ordinary shares and preference shares as means of financing a
business. (8 Marks)
Page 2 of 7
LEVEL : PRE-UNIVERSITY/COLLEGE/HIGHSCHOOL
TIME: 2HRS DATE: 02 /12/2024
INSTRUCTIONS TO CANDIDATES
1. Answer Question One and any other Two questions in the answer booklet provided.
2. Do not write on your question papers. All rough work should be done in your
answer booklet.
3. Clearly indicate which question you are answering.
4. Write neatly and legibly.
5. Edit your work for language and grammar errors.
6. Follow all the instructions in the answer booklet
Page 1 of 7
, SECTION A: (COMPULSORY) TOTAL MARKS FOR THIS SECTION IS 30.
QUESTION ONE (30 MARKS)
a) Explain three conventions of accounting (3 Marks)
b) Explain how a partnership would deal with the following items in the absence of a
partner deed:
i. capital contribution
ii. share of profit and losses
iii. interest on capital
iv. drawings by partners (8 Marks)
c) Outline the components of prime cost in preparing a manufacturing account. (3 Marks)
d) Explain four limitations of financial ratios as a tool of analyzing financial statements.
(8
Marks)
e) Distinguish between ordinary shares and preference shares as means of financing a
business. (8 Marks)
Page 2 of 7
