1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
The draft profit of L plc for the year ended 30 June 2024 was calculated at $58 340. The directors have discovered some errors in the accounting records. The draft profit had been calculated before correcting the following: Closing inventory had been overstated by $2800. Returns outwards of $570 had been debited to the Purchases account. Distribution costs included a payment of $4320 for advertising covering the three years ending 31 March 2027. Calculate the revised profit for the year ended 30 June 2024. Additional information The share capital of L plc comprised ordinary shares of $0.50 each. During the year ended 30 June 2024 the following transactions took place. Date Transaction 31 August 2023 Paid a final dividend of $0.05 per share on all shares in issue at that date. 31 December 2023 Made a bonus issue of one ordinary share for every seven shares held at that date. The directors decided to leave the reserves in the most flexible form. 31 March 2024 Paid an interim dividend of 2% on all shares in issue at that date. 31 March 2024 Made a rights issue of one ordinary share for every four shares held at a premium of $0.20 per share. The rights issue was fully taken up. 30 June 2024 Property was revalued downwards by $8000. The value of ordinary share capital at 30 June 2024 was $200 000. Calculate the value of ordinary share capital at 1 July 2023. Complete the statement of changes in equity for the year ended 30 June 2024. L plc Statement of changes in equity for the year ended 30 June 2024 Share capital $ Share premium $ Revaluation reserve $ Retained earnings $ Total $ At 1 July 2023 19 200 6 500 18 400 Final dividend Bonus issue Interim dividend Rights issue Revaluation Profit for the year At 30 June 2024 200 000
9706_w24_qp_22
THEORY
2024
Paper 2, Variant 2
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The following balances have been extracted from the records of N plc at 1 October 2023. $ Share capital (ordinary shares of $0.50 each) 250 000 Share premium 13 400 Retained earnings 71 800 The following transactions took place during the year ended 30 September 2024. 1 November 2023 Issued 50 000 ordinary shares at $0.70 each. 1 March 2024 Made a rights issue of one ordinary share for every five shares held at that date at an issue price of $0.65. The issue was fully subscribed. 1 May 2024 Paid a final dividend of $0.02 per share on all shares in issue at that date. 1 July 2024 Made a bonus issue of one ordinary share for every eight shares held at that date. The profit for the year ended 30 September 2024 was $41 800. Prepare the following accounts for the year ended 30 September 2024. Dates are not required. Share capital Details $ Details $ State two features of a debenture. State two features of ordinary shares.
9706_w24_qp_23
THEORY
2024
Paper 2, Variant 3
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9706/21/M/ Prepare the statement of changes in equity for Bayliss Limited for t Bayliss L Statement of changes in equity for th Share capital $000 Share premium $000 Rev re $ Balance at 1 January 2015 Prepare the statement of financial position for Bayliss Limited at 31 December 2015. Additional information The 5% debentures are due for repayment in the next two years. The directors of Bayliss Limited are considering the following two options to raise the necessary finance to repay the $80 000. Issue 160 000 ordinary shares of $0.50 each. Issue a further debenture of $80 000. REQUIRED Discuss the impact of each option on the future profits of Bayliss Limited. Advise the directors which option they should choose. Give reasons for your decision. Additional information The statement of financial position of a limited company may include capital reserves and also revenue reserves. REQUIRED Explain the difference between a capital reserve and a revenue reserve. State one example of a capital reserve.
9706_s16_qp_21
THEORY
2016
Paper 2, Variant 1
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9706/23/M/ Prepare the statement of changes in equity for Bayliss Limited for t Bayliss L Statement of changes in equity for th Share capital $000 Share premium $000 Rev re $ Balance at 1 January 2015 Prepare the statement of financial position for Bayliss Limited at 31 December 2015. Additional information The 5% debentures are due for repayment in the next two years. The directors of Bayliss Limited are considering the following two options to raise the necessary finance to repay the $80 000. Issue 160 000 ordinary shares of $0.50 each. Issue a further debenture of $80 000. REQUIRED Discuss the impact of each option on the future profits of Bayliss Limited. Advise the directors which option they should choose. Give reasons for your decision. Additional information The statement of financial position of a limited company may include capital reserves and also revenue reserves. REQUIRED Explain the difference between a capital reserve and a revenue reserve. State one example of a capital reserve.
9706_s16_qp_23
THEORY
2016
Paper 2, Variant 3
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Financial statements provide information to enable users to evaluate the financial performance of a business. State three reasons why it might be difficult to compare financial ratios between businesses in the same industry. X Limited is a wholesaler of sports goods. The directors of the company have provided the following information for the year ended 30 April 2019. $ Revenue 742 630 Cost of sales (459 991) For the year ended 30 April 2019 the rate of inventory turnover was 7.5 times. The value of inventory at 1 May 2018 was $57 682. At 30 April 2019 the trade receivables turnover was 35 days and the trade payables turnover was 32 days. All sales are made on credit. Credit purchases amounted to 80% of the value of cost of sales. REQUIRED Calculate at 30 April 2019: closing inventory trade receivables trade payables. Additional information X Limited has an operating expenses to revenue ratio of 30%. Distribution costs are twice as much as administrative expenses. Finance costs are 5% of the profit for the year. REQUIRED Prepare the income statement for X Limited for the year ended 30 April 2019. Additional information On 1 October 2018 X Limited paid a dividend of $25 000 on the basis of $0.08 per ordinary share of $1 each. On 1 February 2019 X Limited made a rights issue of 1 ordinary share for every 5 held at a premium of $0.50. This was the first time that X Limited had issued new shares. The rights issue was fully subscribed. REQUIRED Calculate the proceeds received by X Limited from the rights issue.
9706_s19_qp_22
THEORY
2019
Paper 2, Variant 2
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Questions Discovered
1775