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9706_w09_qp_21
A paper of Accounting, 9706
Questions:
3
Year:
2009
Paper:
2
Variant:
1
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1
For Examiner's Use Rahul and Shivam are in partnership. The partnership agreement provides that: Rahul contributes two-thirds and Shivam one-third of the capital which is fixed. Profits and losses are to be shared in the ratio of capital contributed. Partners are to be credited with interest on capital at 10 % per annum. Partnership salaries are to be credited to Rahul, $25 000, and Shivam, $30 000. There will be no interest charged on drawings. All transactions are made through the bank. The following is a summary of the partnership bank account for the year ended 31 March 2009. $ $ Bank balance at 1 April 2008 5 000 Cheques received from debtors 805 000 810 000 Cheques paid to creditors 600 000 Electricity 25 000 Rent and rates 34 000 Insurance 14 500 General expenses 14 000 New vehicles 60 000 Drawings Rahul 25 000 Shivam 30 000 802 500 Bank balance at 31 March 2009 7 500 On 1 April 2008 the partnership current account balances were: Rahul $15 500 Cr Shivam $500 Dr The following information is also available: 1 April 2008 31 March 2009 $ $ Stock 45 000 48 000 Trade debtors 52 000 63 000 Prepaid rent and rates 3 000 2 000 Vehicles at net book value 40 000 80 000 Fixtures and fittings at net book value 30 000 28 000 Electricity owing 5 000 6 000 Trade creditors 35 000 41 000 For Examiner's Use REQUIRED Calculate the fixed capital account balance for each partner. For Examiner's Use REQUIRED Prepare the trading, profit and loss and appropriation accounts for the year ended 31 March 2009. For Examiner's Use REQUIRED Prepare Rahul's current account for the year ended 31 March 2009.
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 The following is the receipts and payments account of the Rumbledethumps Bowling Club for the year ended 30 September 2009. Receipts Payments $ $ Opening balances Greenkeeper's wages 25 000 Cash Insurance 3 450 Bank current account 12 150 Furniture for clubhouse 2 150 Bank deposit account 84 500 Secretary's honorarium 2 000 Subscriptions General expenses 8 950 Ordinary 31 200 Clubhouse repairs 3 540 Life 10 000 Band for dinner dance Café takings 94 320 Other dance expenses 4 730 Dinner dance 6 000 Café refreshments 43 500 Café wages 23 500 Clubhouse rates 4 500 Closing balances Cash Bank current account 10 980 Bank deposit account 105 690 239 020 239 020 The following information is also available: Other assets and liabilities of the club at 30 September $ $ Clubhouse 120 000 120 000 Café refreshment stock 9 500 10 500 Creditors for café refreshments 6 700 7 900 Insurance prepaid Rates accrued Furniture and fittings 26 200 25 400 Subscriptions prepaid 2 200 2 400 Subscriptions due and unpaid 2 800 2 600 Life membership was introduced on 1 October 2008 when five life members were admitted and paid $2000 each. It was decided that life membership should be accounted for separately and credited to ordinary revenue over twenty years, in equal amounts. Interest on the bank deposit account of $4500 for the year ended 30 September 2009 had not been taken into account at the year end. For Examiner's Use REQUIRED Prepare the café trading account for the year ended 30 September 2009. For Examiner's Use Prepare the club income and expenditure account for the year ended 30 September 2009. For Examiner's Use Prepare the club balance sheet at 30 September 2009. For Examiner's Use State two advantages and two disadvantages of using a receipts and payments account instead of an income and expenditure account, in a non-trading organisation.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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3
For Examiner's Use Singh Ltd manufactures three products - Athol, Brose and Crowdie – selling at $3, $7 and $4 respectively. The manufacturing process is the same for all products but each requires a different quality of raw material. Expected trading results for the six months ending 31 May 2010 are as follows: Athol Brose Crowdie Total $ $ $ $ Sales 120 000 91 000 88 000 299 000 Variable costs Direct materials 48 000 52 000 27 500 127 500 Direct labour (paid at $4 per hour) 20 000 13 000 22 000 55 000 Variable overheads 40 000 39 000 11 000 90 000 108 000 104 000 60 500 272 500 Fixed costs 20 000 292 500 Estimated profit 6 500 REQUIRED Calculate the estimated number of direct labour hours needed to manufacture each product, and in total. Calculate the estimated contribution per direct labour hour for products Athol and Crowdie. For Examiner's Use Calculate the number of units of each of the three products produced per direct labour hour. Management has decided to cease production of Brose with effect from 1 June 2010. REQUIRED State why management has decided to take this action. For Examiner's Use The demand for the remaining products is expected to be: Athol 60 000 units; Crowdie 32 000 units. Management has undertaken to continue production as follows: switch the labour force from Brose to Athol and Crowdie: additional labour may also be required; the rate per hour for direct labour will be increased to $4.10 per hour; selling prices per unit of Athol and Crowdie will be unchanged; direct material costs per unit will be unchanged; the ratio of variable overheads to selling price for each product will be unchanged; fixed costs will increase by 10 %. REQUIRED Use the information above to prepare an estimated profit statement for the six months ending 30 November 2010. Follow the layout used at the beginning of the question.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.2. Standard costing
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
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