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9706_w08_qp_2
A paper of Accounting, 9706
Questions:
3
Year:
2008
Paper:
2
Variant:
0
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1
For Examiner's Use Lee, Kim and Michael are in partnership. They share profits in the ratio of 3:2:1 respectively. They do not keep proper accounting records but the following information is available for the three years ended 30 September 2008. Balances at 30 September $ $ $ Fixed assets at valuation 750 000 870 000 1 200 000 Stocks 660 000 690 000 825 000 Debtors 390 000 420 000 495 000 Creditors 346 000 404 000 448 000 Bank overdrafts 285 000 255 000 375 000 On 1 October 2005 the balances (all credit) on the partners' accounts were as follows. Lee Kim Michael $ $ $ Capital accounts 240 000 210 000 150 000 Current accounts 190 000 50 000 80 000 In order to finance a new project, each partner introduced additional capital of $60 000 on 1 October 2007. The partners' drawings were as follows. For the year ended 30 September $ $ $ Lee 45 000 70 000 105 000 Kim 42 000 48 000 105 000 Michael 36 000 30 000 8 000 Michael also received a partnership salary which he withdrew in cash. This was not included in the drawings figure shown above. His salary was $45 000 in 2006; $60 000 in 2007 and $65 000 in 2008. For Examiner's Use REQUIRED Calculate the total net profit available to the partners for each of the three years ended 30 September 2006, 2007, 2008. For Examiner's Use Prepare Michael's capital and current accounts for each of the three years ended 30 September 2006, 2007 and 2008. Capital account – Michael Current account - Michael For Examiner's Use Explain, briefly, why partnerships may keep both capital accounts and current accounts.
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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2
For Examiner's Use A Lee Quinn has $150 000 which she intends to use to fund a new business. The business will commence on 1 December 2008 and expenditure on that date is expected to be as follows. $ Land and buildings 70 000 Motor vehicle 20 000 Fixtures and fittings 18 000 The remaining cash will be deposited in the business bank account. During the first year of business, Lee anticipates the following: Sales $220 000 of which 15 % will be on credit Gross profit as a percentage of sales 45 % Discount allowed 2 % of total sales Discount received 2 % of total purchases Wages and salaries 9 % of total sales Depreciation on motor vehicles 40 % reducing balance Depreciation on fixtures and fittings 20 % on cost Bad debts 3 % of credit sales Sundry expenses 5 % of total sales Drawings $10 000 plus 10 % of net profit At 30 November 2009, projected balances are: $ Stock 19 500 Debtors 12 000 Creditors 11 000 Bank ? No outstanding accruals or prepayments are anticipated at 30 November 2009. For Examiner's Use REQUIRED For the year ending 30 November 2009, calculate: total receipts from debtors; total purchases, all of which will be on credit; total payments to creditors. For Examiner's Use Prepare a projected trading and profit and loss account for the year ending 30 November 2009. For Examiner's Use Prepare a projected balance sheet at 30 November 2009.
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
3
For Examiner's Use Ken owns a manufacturing business which makes a single product. The following figures apply for all relevant periods. Per unit $ Selling price Direct material Direct labour Fixed manufacturing overheads Fixed manufacturing overheads are absorbed into product costs at pre-determined rates per unit of output. Under- or over-absorbed manufacturing overheads are transferred to profit and loss in the period in which they occur. Normal production is 80 000 units per accounting period. REQUIRED Calculate the break-even point in both units and dollars, based on the information above. The following information has been acquired for the last three accounting periods. Three months ended 28 February 31 May 31 August Units Units Units Sales 60 000 80 000 45 000 Stock at start of period 15 000 35 000 Stock at end of period 35 000 20 000 For Examiner's Use Calculate the profit or loss in each period using marginal costing. For Examiner's Use Calculate the profit or loss in each period using absorption costing. Prepare a financial statement that reconciles your profit using marginal costing with your profit using absorption costing. For three months ended 28 February 31 May 31 August $ $ $ Profit using marginal costing Profit using absorption costing
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
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