3.1. Preparation of financial statements
A subsection of Accounting, 9706, through 3. Financial accounting (A Level)
Listing 10 of 678 questions
For Examiner's Use A Marie Motiwala’s draft profit and loss account for the year ended 30 April 2008 was prepared by her new book-keeper and showed a loss of $100 000. The following errors were then discovered. Capital of $80 000 contributed by Marie Motiwala had been included in sales. Sales returns of $20 000 had been debited to purchases returns. No provision for depreciation on equipment had been charged for the year. Depreciation should have been provided for using the reducing balance method at 40 % per annum. The book value of equipment at 1 May 2007 was $240 000. Accrued bank interest of $10 000 payable at 30 April 2008 had been omitted from the accounts. Marie Motiwala’s drawings of $50 000 had been debited to wages. Stock valued at $10 000 at 30 April 2008 should have been valued at $1000. Stock costing $11 000 taken for Marie Motiwala’s personal use during the year had not been recorded in the accounts. A $20 000 interest free loan to an employee had been debited to the wages account. $100 000 had been debited to the equipment account. Of this amount, $25 000 should have been debited to equipment repairs. 10 Stock costing $22 000 was delivered to the business on 28 April 2008 and was included in the end-of-year stocktaking. The invoice was received and entered into the accounting records on 3 May 2008. For Examiner's Use REQUIRED Prepare JR's sales ledger control account for the month of March 2008. For Examiner's Use State three possible reasons why a debtor's account might have a credit balance. State three reasons for keeping control accounts.
9706_s08_qp_2
THEORY
2008
Paper 2, Variant 0
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Shaun is a sole trader. He pays all the sales receipts into the business bank account. He provided his accountant with the following information for the year ended 31 December 2011. Bank account summary for the year ended 31 December 2011 Dr. $ Cr. $ Rent received 16 800 Balance b/d 5 620 Trade receivables 203 200 Trade payables 122 460 Cash sales 18 510 General expenses 22 000 Wages 32 560 Motor vehicles 19 200 Equipment 17 400 Drawings 27 560 Shaun’s remaining assets and liabilities were: 1 January 2011 31 December 2011 $ $ Inventory (at cost) 22 300 17 400 Premises (at cost) 100 000 100 000 Equipment (net book value) 28 400 27 600 Motor vehicles (net book value) 65 000 68 200 Trade receivables 22 400 28 600 Trade payables 17 500 19 470 General expenses prepaid 1 100 Rent received prepaid – Rent received owing – 1 300 Wages owing 2 400 Additional information: Shaun allowed his customers discounts of $4000. Discounts received from suppliers were $3100. Shaun has decided to create a provision for doubtful debts of 2% of the trade receivables outstanding at 31 December 2011. General expenses in the bank account summary include an amount of $660 which relates to the payment of Shaun’s private house insurance. Shaun had taken goods at a cost price of $3700 for his personal use. For Examiner's Use REQUIRED Calculate the value of Shaun’s sales and ordinary goods purchased for the year ended 31 December 2011. Sales Ordinary goods purchased For Examiner's Use Prepare Shaun’s income statement for the year ended 31 December 2011. For Examiner's Use Prepare Shaun's statement of financial position at 31 December 2011.
9706_s12_qp_23
THEORY
2012
Paper 2, Variant 3
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Questions Discovered
678