3.1. Preparation of financial statements
A subsection of Accounting, 9706, through 3. Financial accounting (A Level)
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Marcel owns a wholesale business supplying shops, hotels and restaurants with tea and coffee. He does not keep formal accounting records but is able to supply the following information for the year ended 30 April 2011. 30 April 2011 1 May 2010 $ $ Trade receivables 17 000 18 200 Trade payables 14 800 16 600 Inventories 20 600 33 000 Wages accrued 9 350 9 200 General expenses prepaid – General expenses owing – Transactions during the year ended 30 April 2011 were as follows: $ Cash received from credit customers 103 160 Cash paid to credit suppliers 88 400 Cash sales to staff 10 750 Sales returns from credit customers 9 200 Discounts allowed 9 540 Discounts received 9 000 Bad debts 8 200 Wages 13 650 General expenses 12 300 REQUIRED Prepare a purchases ledger control account to find out the total amount of credit purchases for the year ended 30 April 2011. Prepare a sales ledger control account to find out the amount of credit sales for the year ended 30 April 2011. Additional information: The normal gross profit to sales margin is 33.33%. Staff are permitted to buy goods at cost plus 25%. Goods sold in the annual clearance sale, $29 700, were sold at cost price. On 8 March 2011 an unknown quantity of goods was destroyed by fire. REQUIRED There were no further losses of goods during the year. Starting with the opening inventory, calculate the value of the goods destroyed by the fire on 8 March 2011. Prepare the income statement (trading account only) for the year ended 30 April 2011.
9706_s11_qp_22
THEORY
2011
Paper 2, Variant 2
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