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1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Answer Sections A and B. A Sarah runs a wholesale business. An extract from her statement of financial position (balance sheet) at 31 December 2009 shows: Motor vehicles at cost $371 000 Motor vehicle accumulated depreciation $130 000 During the financial year ended 31 December 2010 the following transactions took place. A motor vehicle purchased on 1 January 2006 for $9200 was sold on 30 June 2010 for $500. A motor vehicle was purchased on 1 April 2010 for $15 000. Depreciation is charged at 20% per annum on cost, with the rate being applied for each part of the year. No allowance is made for any residual value. All motor vehicles held by the company at 31 December 2010 had been purchased within the previous five years. All transactions are by cheque. REQUIRED Prepare the following ledger accounts for the year ended 31 December 2010. Motor vehicles account Provision for depreciation of motor vehicles account Motor vehicle disposal account Prepare an extract from the statement of financial position (balance sheet) for non-current assets at 31 December 2010. Explain why businesses provide for depreciation on their non-current assets. B The treasurer of Hamilton Social Club has provided the following information for the year ended 31 March 2011. 31 March 2010 31 March 2011 $ $ Café inventory at cost Café trade payables Subscriptions in arrears Equipment (net book value) Stock of stationery at cost Cash at bank 5% loan (repayable 2015) – Equipment costing $5000 was purchased on 1 April 2010. It was financed by the 5% loan. At the year end 31 March 2011, no payment of interest had been made. Included in the café inventory at 31 March 2011 were items costing $120 that were out of date. They had a net realisable value of $30. REQUIRED Prepare a statement of financial position (balance sheet) for Hamilton Social Club at 31 March 2011. Show clearly the surplus or deficit for the year. An income and expenditure account is not required.
9706_w11_qp_23
THEORY
2011
Paper 2, Variant 3
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Questions Discovered
1775