9706_s13_qp_21 - revisedeck

1

The Klassik Music Society produced the following receipts and payments summary for the year ended 31 March 2013. Receipts $ Subscriptions 30 000 Sales of food and drink 50 000 Bank loan 30 000 Income from concerts 116 800 Sale of surplus equipment 30 000 Payments Balance, 1 April 2012 12 000 Purchase of new equipment 10 000 Hire of hall for concerts 27 000 Printing 14 000 Equipment maintenance and repairs 8 000 Purchases of food and drink 23 000 Salaries 45 000 Cost of concerts 83 500 Sundry expenses Sponsorship 1 000 Balance, 31 March 2013 ? Additional information: 31 March 2012 31 March 2013 $ $ Salaries in arrears 2 800 1 600 Subscriptions owing 1 600 2 600 Subscriptions prepaid 1 000 Printing accrued 2 600 2 800 Equipment (cost $200 000), at NBV 160 000 ? Food and drink inventory 15 400 13 200 The bank loan was received on 1 July 2012. Interest is charged at 12% per annum. No interest had been paid by the year end. The equipment sold was purchased on 1 June 2011 and had a NBV of $32 000. Depreciation is provided at 20% on cost for equipment in use at the year end. For Examiner's Use REQUIRED Prepare the trading section of the income statement for the year ended 31 March 2013. Calculate the gross profit percentage, to one decimal place, made on sales of food and drink. The prices of food and drink sold had been planned to obtain a gross margin of 70%. Compare this figure with the figure calculated in and state two reasons why these figures may differ. For Examiner's Use Prepare the income and expenditure account of the Klassik Music Society for the year ended 31 March 2013. For Examiner's Use Prepare the statement of financial position of the Klassik Music Society at 31 March 2013.

3. Financial accounting (A Level) → 3.5. Analysis and communication of accounting information

3. Financial accounting (A Level) → 3.1. Preparation of financial statements

1. Financial accounting (AS Level) → 1.6. Analysis and communication of accounting information

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2

Bach runs a manufacturing business. An extract from his statement of financial position at 1 January 2012 is shown below: Non-current assets Cost Accumulated depreciation Net book value $ $ $ Factory premises 220 000 26 400 193 600 Machinery 138 600 52 200 86 400 During 2012 the following transactions took place for machinery. Disposals Date Machinery reference Year of purchase Initial cost Disposal proceeds $ $ 26 March M12 14 000 7 100 17 August M18 8 000 1 320 13 December M20 9 600 Additions Date Machinery reference Cost $ 20 April M27 11 500 25 October M31 16 200 All receipts and payments for these transactions are processed through the business bank account. All of the remaining machinery at 31 December 2012 was purchased after 2008. Depreciation on the factory premises is charged on a straight line basis based on a 50 year life, with no residual value. Depreciation on machinery is charged on a straight line basis based on a five year life and an estimated residual value of 10% of the original cost. It is the company policy to charge a full year’s depreciation in the year of purchase but none in the year of disposal. For Examiner's Use REQUIRED Prepare the following ledger accounts for the year ended 31 December 2012. Machinery account Provision for depreciation of machinery account For Examiner's Use Machinery disposals account Identify two alternative methods of providing for depreciation. State three causes of depreciation. For Examiner's Use Bach’s statement of financial position showed the following at 1 January 2013: Trade receivables $12 000 Trade payables $10 000 Bank balance $800 Dr Sales are paid in full one month after the sale Purchases are payable 50% in the month of purchase, the remainder one month later Other expenses are paid in the month they occur Budgeted sales, purchases and other expenses for the period January to March 2013 are as follows: January $ February $ March $ Sales 10 000 12 000 14 000 Purchases 8 000 12 000 16 000 Other expenses 5 000 5 000 5 000 Complete the following table to show the budgeted closing bank balance on 31 March 2013. Receipts January February March Receipts from customers Payments Payments to suppliers Other expenses Opening bank balance Net cash flow Closing bank balance For Examiner's Use Suggest two ways Bach could improve his budgeted bank balance at 31 March 2013.

1. Financial accounting (AS Level) → 1.3. Accounting for non-current assets

3. Financial accounting (A Level) → 3.1. Preparation of financial statements

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3

For Examiner's Use Bazeri Limited manufactures a range of components and the directors provide the following forecast information for the year ended 31 December 2014. Direct material 125 000 kilos @ $2.48 per kilo Direct labour – Department A 32 000 hours @ $10.00 per hour Direct labour – Department B 20 000 hours @ $9.00 per hour Production overhead – Department A $520 000 Production overhead – Department B $480 000 Administration overhead $405 000 Profit margin 20% REQUIRED Calculate the forecast profit for Bazeri Limited for the year ended 31 December 2014. Additional information: Production overheads are to be recovered for both departments A and B on the basis of direct labour hours. Administration overheads are to be recovered as a percentage of direct production costs. For Examiner's Use REQUIRED Calculate the following forecast overhead absorption rates: Production overhead – Department A Production overhead – Department B Administration overhead For Examiner's Use Bazeri Limited has been asked to quote for a job, reference J316, that would use the following: Direct material 5625 kilos Direct labour – Department A 1500 hours Direct labour – Department B 1200 hours REQUIRED Calculate the total costs of job J316. Calculate the price Bazeri Limited will quote for job J316.

2. Cost and management accounting (AS Level) → 2.2. Traditional costing methods

4. Cost and management accounting (A Level) → 4.2. Standard costing

4. Cost and management accounting (A Level) → 4.3. Budgeting and budgetary control

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