Subsection 3.1. Preparation of financial statements for Accounting, A Level - revisedeck

3.1. Preparation of financial statements

A subsection of Accounting, 9706, through 3. Financial accounting (A Level)

Listing 10 of 678 questions

The accounting year end for a company is 31 October. The table shows the company’s telephone bill received on 2 December for the three months ended 30 November. $ telephone calls to 30 November rental of equipment for the period from 1 September to 30 November _____ total telephone bill Which accrual should the company make in the accounts for the year ended 31 October?

9706_w05_qp_1

MCQ

2005

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A company’s Profit and Loss Account showed a profit before interest of $128 000. Interest paid was $8000. The table shows amounts included in the company’s Balance Sheet. $ fixed assets 485 000 net current assets 27 000 amounts falling due after one year: Debentures 80 000 How much is the return on the total capital employed?

9706_w06_qp_1

MCQ

2006

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A new business was established with opening capital of $15 000. At the end of the year net assets were $20 000. During the year the proprietor’s drawings were $3000 and this resulted in an overdraft at the end of the year of $4000. What was the profit during the year?

9706_w09_qp_11

MCQ

2009

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A new business was established with opening capital of $15 000. At the end of the year net assets were $20 000. During the year the proprietor’s drawings were $3000 and this resulted in an overdraft at the end of the year of $4000. What was the profit during the year?

9706_w09_qp_12

MCQ

2009

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The treasurer has provided the following information relating to a golf club’s financial position at the year end. $ cash at bank 2 500 non-current assets 120 000 prepaid expenses inventory of refreshments subscriptions in advance subscriptions in arrears unpaid bills What is the accumulated fund at the year end?

9706_w11_qp_12

MCQ

2011

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The balance sheet of a business at 30 June includes the following items: Year 1 Year 2 trade receivables 47 000 63 000 other receivables 1 900 2 700 Total sales for Year 2 amounted to $450 000 of which $85 000 were cash sales. What is the average trade receivables collection period during the year ended 30 June Year 2?

9706_w11_qp_13

MCQ

2011

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A trial balance shows the following information. $ premises at cost 150 000 accumulated depreciation on premises 25 000 On 1 January the premises are revalued at $270 000. At the same time 200 000 shares of $1 each are issued for $300 000. What is the value of the reserves created on 1 January?

9706_w12_qp_12

MCQ

2012

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A company’s accounting year end is 31 December. It always pays its insurance premiums annually, in advance, on the due date, 1 September. During the last few years the following premiums have been paid: Year 1 $2400 Year 2 $2760 Year 3 $3840 What will be the charge for insurance in the company’s income statement for Year 3?

9706_w12_qp_13

MCQ

2012

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The treasurer of the Winners Athletic Club has provided the following information for the year ended 30 June 2015. Receipts and Payment Account $ $ Subscriptions received 8 690 Balance at 1 July 2014 3 690 Receipts from shop sales 6 670 Purchases for shop 2 590 Sales of tickets for events 3 720 Wages for shop 2 780 Sales of old equipment 1 200 Costs of events 2 120 New equipment 3 600 Entry fees 2 160 Secretary’s expenses 1 370 Balance at 30 June 2015 1 970 20 280 20 280 Additional information 1 July 2014 30 June 2015 $ $ Life membership fund ? Shop inventory Equipment at net book value ? Trade payables for shop Trade receivables for shop Subscriptions in advance Subscriptions in arrears Events tickets in advance - Entry fees in arrears - The treasurer has found out that $60 of the trade receivables will not be received. Bank charges of $126 have not been entered in the books. The subscriptions include seven life memberships of $300 each. The life membership fund is to be transferred to income and expenditure over a 10-year period. Depreciation is charged at 20% on the net book value of assets held at the year end. The equipment sold had cost $3000 and had been depreciated by $1540 at the date of sale. REQUIRED Prepare an income statement for the shop for the year ended 30 June 2015. Prepare the income and expenditure account for the year ended 30 June 2015. Prepare the statement of financial position at 30 June 2015. Explain why no amounts have been entered in the financial statements in respect of the many hours worked during the year by volunteers. Explain why the amounts prepaid and accrued are included in the financial statements of the club. REQUIRED Complete the following table to show the correct profit for the year ended 31 December 2014. Add ($) Deduct ($) Total ($) Original profit for the year Question 2is on the next page. Prepare the corrected statement of financial position at 31 December 2014. Name five external users of accounting information and state their interest in the information.

9706_w15_qp_22

THEORY

2015

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The following information is available from the financial records of a trader. $ capital at 1 January 2015 65 000 capital introduced on 30 June 2015 20 000 drawings for the year ended 31 December 2015 35 000 capital at 31 December 2015 90 000 What was the profit for the year ended 31 December 2015?

9706_w16_qp_13

MCQ

2016

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