1.3. Accounting for non-current assets
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
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Bart, a sole trader, provided the following trial balance for the year ended 30 April 2012. $ $ Sales Revenue 799 000 Inventory at 1 May 2011 (at cost) Raw materials 20 000 Work-in-progress 52 000 Finished goods 78 000 Purchase of raw materials 238 000 Purchase returns 10 000 Manufacturing wages 265 000 Indirect factory wages 46 000 Factory buildings at cost 600 000 Factory machinery at cost 260 000 Office equipment at cost 148 000 Provision for depreciation: Factory machinery 60 000 Office equipment 44 000 Insurance 14 000 General factory expenses 6 000 Factory supervision salaries 15 000 Heat and light 6 000 Administrative expenses 33 000 Office salaries 55 000 Trade receivables 40 000 Provision for doubtful debts 2 000 Trade payables 32 000 Bank 3 000 Capital 932 000 1 879 000 1 879 000 . Additional Information: Inventory at 30 April 2012 (at cost): $ Raw materials 56 000 Work-in-progress 58 000 Finished goods 72 000 Depreciation is provided on non-current assets at a rate of 20% per year using the reducing balance method. The following expenses should be apportioned as follows: Factory Office Insurance 70% 30% Heat and light 80% 20% On 30 April 2012 indirect factory wages of $5000 were unpaid and insurance of $7000 had been paid in advance. Provision for doubtful debts is to be maintained at 3% of trade receivables. For Examiner's Use REQUIRED Prepare Bart’s manufacturing account for the year ended 30 April 2012. For Examiner's Use Prepare Bart’s income statement for the year ended 30 April 2012. For Examiner's Use State three examples of how the prudence concept has been applied in the preparation of Bart’s manufacturing account and income statement.
9706_s12_qp_22
THEORY
2012
Paper 2, Variant 2
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Questions Discovered
480