3.1. Preparation of financial statements
A subsection of Accounting, 9706, through 3. Financial accounting (A Level)
Listing 10 of 678 questions
Eagle Manufacturing Limited produces components for cars and lorries. The following figures have been taken from their books of account. $000 Revenue Inventories at 1 April 2012 Raw materials Work in progress Finished goods Factory machinery – cost – accumulated depreciation Office equipment – cost – accumulated depreciation Motor vehicles – cost – accumulated depreciation Purchases of raw materials Labour Electricity Carriage inwards Carriage outwards Rent Salaries Sundry expenses Insurances Additional information: Inventories at 31 March 2013 were: Raw materials $18 000 Work in progress $15 000 Finished goods $41 000 Factory machinery and motor vehicles are to be depreciated at 25% using the reducing balance method. Office equipment is to be depreciated at 10% on cost. During the year a motor vehicle was sold for $4 000. The profit on disposal was $1 000. A new motor vehicle was purchased for $9 000. All motor vehicles are used by the sales staff. A full year’s depreciation is charged in the year of purchase, no depreciation is charged in the year of sale. At 31 March 2013 electricity of $5 000 was accrued and rent of $10 000 was prepaid. Labour costs include $16 000 for indirect labour. The balance is direct labour. Electricity is apportioned between the factory and office in the ratio 4:1. Rent is apportioned between factory and offices in the ratio 3:2. Sundry expenses are apportioned between factory and offices in the ratio 1:2. Insurances are apportioned between factory and offices in the ratio 5:1. For Examiner's Use REQUIRED Prepare the manufacturing account for the year ended 31 March 2013. For Examiner's Use Prepare the income statement for the year ended 31 March 2013. For Examiner's Use Explain how the following will be affected if the company makes a loss in the year: Dividend payable for cumulative preference shares Dividend payable for ordinary shares Dividend payable on non-cumulative preference shares Interest payable on debentures.
9706_s13_qp_23
THEORY
2013
Paper 2, Variant 3
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Shane Limited is a small manufacturing company. The directors provided the following information for the six months ended 31 December 2013. $000 Trade receivables at 1 July 2013 Trade receivables at 31 December 2013 Cash received from trade receivables Sales returns Bad debts All sales are on credit. REQUIRED Prepare a sales ledger control account to calculate Shane Limited’s sales for the 6 months ended 31 December 2013 REQUIRED Prepare Shane Limited’s manufacturing account for the 6 months ended 31 December 2013. Prepare Shane Limited’s income statement for the 6 months ended 31 December 2013. Explain the following concepts: Matching Materiality
9706_s14_qp_21
THEORY
2014
Paper 2, Variant 1
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Questions Discovered
678