1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
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.
9706_w09_qp_21
THEORY
2009
Paper 2, Variant 1
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Carl and Daniel are in partnership. Their partnership agreement provides that: Daniel has a partnership salary of $3000 per annum Interest on capital is 6% per annum Interest on drawings is charged Residual profits / losses are shared 3:2 respectively. The partners have never kept full accounting records but provided the following information: Cash book summary for the year ended 31 December 2010 $ $ Balance b/d 2 178 Trade payables 195 911 Trade receivables 44 049 Wages 63 156 Cash sales 332 467 Purchase of machine 8 800 Rent received 7 000 General expenses 56 676 Drawings – Carl 35 660 Drawings – Daniel 26 480 The assets and liabilities were: 1 January 2010 31 December 2010 $ $ Fixed capital account – Carl 100 000Cr 100 000Cr Fixed capital account – Daniel 70 000Cr 70 000Cr Current account – Carl 3 210Cr ? Current account – Daniel 1 304Cr ? Machinery (Net Book Value) 147 000 145 000 Motor vehicle (Net Book Value) 16 000 8 000 Inventory 14 003 13 471 Trade receivables Trade payables 4 872 5 163 Wages accrued Rent receivable accrued – Rent receivable prepaid – Additional information: 1. During the year, an old machine which had cost $10 000 was traded in for $3200 in part exchange for a new machine costing $12 000. The old machine had been depreciated by $6000 over its lifetime. 2. Interest on drawings for the year amounted to: Carl – $230 Daniel – $100 REQUIRED Prepare the income statement (trading and profit and loss account) and appropriation account for Carl and Daniel for the year ended 31 December 2010. Prepare the partners’ current accounts (in columnar format) for the year ended 31 December 2010.
9706_w11_qp_23
THEORY
2011
Paper 2, Variant 3
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Questions Discovered
1775