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9706_w09_qp_22
A paper of Accounting, 9706
Questions:
3
Year:
2009
Paper:
2
Variant:
2
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1
For Examiner's Use The following is a summary of Harry's balance sheet at 30 April 2008. $000 $000 Assets Fixed assets Furniture and equipment at net book value Current assets Stock Debtors Cash Total assets Equity and liabilities Equity Owner's capital Current liabilities Creditors for supplies Creditors for expenses Bank overdraft The following information is available for the year ended 30 April 2009: $000 1 Amount paid into bank (This included $50 000 from the sale of furniture and equipment which had a net book value of $48 000.) 2 Cash from Harry's sales was used to pay for the following: Expenses Drawings 3 Amounts paid from the bank: Purchases Interest on overdraft Expenses 4 Balances at 30 April 2009: Creditors for supplies Creditors for expenses Debtors Stock Cash 5 During the year, Harry brought into the business a motor vehicle. 6 A provision for doubtful debts of 4% of debtors is to be made. 7 Depreciation on all fixed assets was to be provided for at 25% using the reducing balance method. Full depreciation would be provided for in the year in which an asset was introduced but none would be applied in the year of disposal. For Examiner's Use REQUIRED Explain, briefly, the difference between a liability and a provision. Calculate, showing all workings, the total sales for the year ended 30 April 2009. For Examiner's Use Calculate, showing all workings, Harry's bank balance at 30 April 2009. For Examiner's Use Prepare Harry's trading and profit and loss account for the year ended 30 April 2009. For Examiner's Use Prepare Harry's balance sheet at 30 April 2009. Use a layout similar to the balance sheet at the beginning of the question.
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
2
For Examiner's Use Alex's fixed asset accounts and provision for depreciation on fixed asset accounts for the year ended 30 April 2008 were as follows: Furniture and equipment account $000 $000 1 May Balance b/d 2 700 5 July Disposal 3 June Bank 30 April Balance c/d 2 970 3 420 3 420 1 May Balance b/d 2 970 Provision for depreciation on furniture and equipment account $000 $000 5 July Disposal 1 May Balance b/d 30 April Balance c/d 30 April Profit & loss 1 242 1 242 1 May Balance b/d Motor vehicles account $000 $000 1 May Balance b/d 1 560 3 Oct Disposal 3 Oct Bank 30 April Balance c/d 1 800 2 130 2 130 1 May Balance b/d 1 800 Provision for depreciation on motor vehicles account $000 $000 3 Oct Disposal 1 May Balance b/d 30 April Balance c/d 30 April Profit & loss 1 125 1 125 1 May Balance b/d For Examiner's Use REQUIRED Prepare the following accounts for the year ended 30 April 2009: Furniture and equipment Motor vehicles Provision for depreciation on furniture and equipment For Examiner's Use Provision for depreciation on motor vehicles Disposal of furniture and equipment Disposal of motor vehicles. For Examiner's Use Explain the term ‘depreciation’ and give one example.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
3
For Examiner's Use Cariokae Ltd is a specialist manufacturer of steel rods for use in the construction industry. The company has three different machines each of which is capable of producing the rods. When a company receives a new order it has to decide which of the three machines to use. Data regarding the machines is as follows: MACHINE A B C Set-up costs per order $200 $330 $600 Number of rods produced per machine-hour Number of machine operators Variable factory overhead for each machine is $12 per direct labour hour. Direct material needed to produce 100 rods is $300, whichever machine is selected. Machine operators are paid $10.50 per hour. REQUIRED Order P235 has been received for 3000 rods. Calculate the costs of producing order P235 on each machine. MACHINE DATA FOR ORDER P235 A B C Order quantity Production rates per hour Operating hours Number of operators Direct labour hours worked COSTS FOR P235 $ $ $ Direct materials Direct labour Variable overheads Set up costs Total costs For Examiner's Use Advise the production manager which machine to use for order P235 to minimise costs. It has been suggested that by adding one additional operator to each machine, 1 there would be an efficiency saving of 10% on direct materials and 2 the rate of production would increase by 20%. REQUIRED Assuming that the additional operator is employed on each machine, re-calculate your answer for order P235. Data for order P235 MACHINE A B C For Examiner's Use State how your advice to the production manager should differ if the additional operator is employed. State whether the additional operator should be retained for each machine. Explain your reasoning.
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
4. Cost and management accounting (A Level)  →  4.2. Standard costing
Open