9706_w15_qp_22
A paper of Accounting, 9706
Questions:
2
Year:
2015
Paper:
2
Variant:
2
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1
The treasurer of the Winners Athletic Club has provided the following information for the year ended 30 June 2015. Receipts and Payment Account $ $ Subscriptions received 8 690 Balance at 1 July 2014 3 690 Receipts from shop sales 6 670 Purchases for shop 2 590 Sales of tickets for events 3 720 Wages for shop 2 780 Sales of old equipment 1 200 Costs of events 2 120 New equipment 3 600 Entry fees 2 160 Secretary’s expenses 1 370 Balance at 30 June 2015 1 970 20 280 20 280 Additional information 1 July 2014 30 June 2015 $ $ Life membership fund ? Shop inventory Equipment at net book value ? Trade payables for shop Trade receivables for shop Subscriptions in advance Subscriptions in arrears Events tickets in advance - Entry fees in arrears - The treasurer has found out that $60 of the trade receivables will not be received. Bank charges of $126 have not been entered in the books. The subscriptions include seven life memberships of $300 each. The life membership fund is to be transferred to income and expenditure over a 10-year period. Depreciation is charged at 20% on the net book value of assets held at the year end. The equipment sold had cost $3000 and had been depreciated by $1540 at the date of sale. REQUIRED Prepare an income statement for the shop for the year ended 30 June 2015. Prepare the income and expenditure account for the year ended 30 June 2015. Prepare the statement of financial position at 30 June 2015. Explain why no amounts have been entered in the financial statements in respect of the many hours worked during the year by volunteers. Explain why the amounts prepaid and accrued are included in the financial statements of the club. REQUIRED Complete the following table to show the correct profit for the year ended 31 December 2014. Add ($) Deduct ($) Total ($) Original profit for the year Question 2is on the next page. Prepare the corrected statement of financial position at 31 December 2014. Name five external users of accounting information and state their interest in the information.
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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3
A division of Hobbs Limited manufactures one product, the Wye. The directors had prepared the following forecast for the year ending 30 June 2016. $000 Sales revenue Direct materials Direct labour Variable administration costs Fixed administration costs Other fixed overheads Budgeted sales for the year ending 30 June 2016 are expected to be 40 000 units. REQUIRED Calculate for product Wye: the contribution per unit the budgeted break-even point in units the margin of safety in units Additional information The directors have been warned that trading conditions are likely to change in the coming year and they plan to make the following changes to their forecasts. Reduce the selling price of the product by 10%. Budget for a 20% increase in sales. Budget for a 3% increase in direct labour. Budget for a 10% decrease in fixed costs. REQUIRED Calculate for product Wye: the revised contribution per unit the revised break-even point in units the revised margin of safety in units Additional information Another division of Hobbs Limited also manufactures one product, the Exe. The following data is available for the year ending 30 June 2016. Unit selling price $20 Unit variable costs $15 Budgeted fixed costs per annum $30 000 Budgeted sales 8000 units REQUIRED Calculate the monthly break-even point in revenue. Prepare a break-even chart for product Exe for the year ending 30 June 2016. Clearly indicate the areas of profit and loss. State three assumptions the accountant must make when preparing a break-even chart. Additional information The company uses marginal costing in order to calculate its break-even point for its ‘make or buy’ decisions. REQUIRED State three further reasons why a business might use a marginal costing system.
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
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