1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
On 31 March 2012 the following balances were extracted from the books of YCAT. $ Inventory – 1 April 2011 Raw materials 53 000 Work in progress 80 000 Finished goods 76 000 Raw materials purchased 800 000 Revenue 2 500 000 Direct wages 450 000 Carriage inwards on raw materials 6 000 Indirect wages 68 000 Returns outwards on raw materials 18 500 Trade receivables 83 000 Revenue returns 22 000 Rates and insurance 38 000 General factory overheads 93 000 Loan interest paid 5 000 Office salaries 80 000 General office expenses 100 000 Premises 600 000 Factory machinery at cost 220 000 Provision for depreciation of factory machinery 40 000 10% Long term loan 100 000 Provision for doubtful debts 3 800 . Additional information $ Inventory – 31 March 2012 Raw materials 47 000 Work in progress 92 000 Finished goods 68 000 The provision for doubtful debts is to be 5% of trade receivables. At 31 March 2012 rates and insurance owing amounted to $950. Rates and insurance are apportioned between the factory and general office in the ratio of 4:1 respectively. Depreciation is to be provided on premises at 5% per annum straight line. This is apportioned between the factory and general office in the ratio of 4:1 respectively. Depreciation on factory machinery is to be provided at 15% using the reducing balance method. For Examiner's Use REQUIRED Prepare the manufacturing account for the year ended 31 March 2012. For Examiner's Use Prepare the income statement for the year ended 31 March 2012. For Examiner's Use Define the prudence concept. State three examples of how this has been applied in the financial statements.
9706_w12_qp_23
THEORY
2012
Paper 2, Variant 3
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Questions Discovered
1775