CASE

Pal Distributors Ltd was incorporated in 2020 and deals in the distribution of Soft. The company is
located in Mukono, P.o. Box 400 Mukono, Uganda. The company’s Email address is
[email protected] and the website is www.paldistributors.co.ug. The company’s accounting
system has since been purely manual and this had caused delays in provision of information for
quick decision making. Therefore the management of the company agreed to computerize the
accounting system effective 1st January, 2021 by purchasing an off-shelf QuickBooks Accounting
software which was handed over to you to start on the computerization work immediately. The
following data was availed to you as on 31st December, 2020;

Inventory
Name UOM Quantity CPU Value
Pepsi - Cola Cases 400 25,000 10,000,000
Fanta - Cola Cartons 200 35,000 7,000,000

Customers
Names Address Amount
City Shoppers Bweyogerere 5,000,000
Musana Outlet Kireka 7,000,000

Vendors
Names Address Amount
Century Bottling Ltd Mukono 10,000,000
Riham Soda Ltd Kawempe 5,000,000
Botlling Co. Ltd Luzira 5,000,000

Other assets and liabilities;

1- UBA (Account Number 300200115) 20,000,000
2- Cash balance 8,000,000
3- Bank loan 30,000,000
4- Accrued electricity 2,000,000
5- Delivery Trucks 50,000,000
6- Opening balance equity 48,000,000
7- Retained Earnings 7,000,000

The following were the transactions carried out by Pal Distributors Ltd during the period ended
31.12.2021

PURCHASES

Jan 5th. Bought 200 cases of Pepsi Cola each Ugx 25,000 on credit from Century Bottling Ltd

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June 10th. Bought 100 Cartons of Fanta Cola each Ugx 30,000 on credit from Bottling Co. Ltd
Aug 15th. Purchases 10 Cases of Pepsi Cola each at Ugx 25,000 cash from Riham Soda Ltd

SALES
Jan 25th Sold 100 Cartons of Fanta Soda each Ugx 40,000 to Musana Outlet on credit
May 15th Sold 200 Cases of Pepsi Cola each Ugx 30,000 on credit to City Shoppers
July 25th Sold 80 Cartons of Fanta Soda to City Shoppers on cash each Ugx 35,000
Dec 20th Sold 250 Cases of Pepsi Cola to Musana Outlet on cash each at Ugx 40,000

PAYMENT FROMCUSTOMERS
Jan 25th Ugx 6,000,000/= paid by cheque fromMusana Outlet
May 15th Ugx 5,000,000/= by cheque from City Shoppers
Dec 20th Ugx 1,000,000 by cash from Musana Outlet

PAYMENT TO SUPPLIERS

Jan 25th. Made part payment to Bottling Co. Ltd of Ugx 6,.00,000 by cheque
June 20th. Paid Century Bottling Ltd Ugx 4,000,000 by cheque
July 25th. Paid Riham Soda Ltd Ugx 4,000,000 by cheque

OTHER TRANSACTIONS ON 31ST DECEMBER 2021.

 Received a telephone bill of Ugx 500,000/=, paid Ugx 300,000/= by cheque and the balance
accrued

 Paid for water expenses by cheque Ugx 1,000,000/=

 Obtained a bank loan of Ugx 5,000,000/=. It was deposited on a business bank A/c

 Paid the outstanding electricity bill by cheque

Required
a) Create a company using the company name (Pal Distributors Ltd) and save it on the desktop in
a folder with your names and registration number. Save all your work and the reports in that
folder (03Marks)
b) Edit preferences by removing date warning in Accounting and set up the home currency to
Ugandan Shillings in multiple currencies (02Marks)
c) Create inventory items and take on opening balances (06Marks)

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d) Add customers and vendor using customer and vendor centers (05Marks)
e) Edit the chart of accounts and take on opening balances of assets and liabilities using the general
journal. Generate a report showing adjusting journal entries as on 31st December 2020 and save it
in PDF format (24Marks)
f) Post the transactions for the year basing on the accrual principle (36Marks)
g) Generate the following reports as at 31st December 2021 and save them in PDF format;-
i) Detailed Customer Balances (03Marks)
ii) Detailed Vendor Balances (03Marks)
iii) Standard statement of profit or loss (08Marks)
iv) Standard statement of financial position (10Marks)
(Total = 100 Marks)
…………………………………………………………………………………………………………
End of question paper

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