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 Aziz has been in business for several years, but does not keep proper books of account. He provides you with the following list of balances for the financial year ended 30 June 2011. $ Motor vehicles (cost $65 000) 50 000 Fixtures (cost $48 000) 32 000 Trade receivables 18 000 Trade payables 14 000 Accrued expenses Inventory 6 000 Premises at cost 100 000 A summary of his receipts and payments for the year ended 30 June 2012 is as follows: Receipts $ Payments $ Receipts from credit customers 132 900 Payments to credit suppliers 88 600 Sale of old motor vehicle 3 600 Purchase of vehicle 15 000 Cash sales 6 600 Expenses paid 17 400 At 30 June 2012 trade receivables were $20 500 and trade payables were $13 600. REQUIRED Calculate the purchase of goods for resale for the year ended 30 June 2012. For Examiner's Use Calculate the total sales for the year ended 30 June 2012. For Examiner's Use Aziz earns a uniform gross profit of 40% on all his sales. Early in June 2012 he had a flood in his premises which damaged some of his stock and made it impossible to sell. He has valued his remaining stock at 30 June 2012 at a selling price of $14 000. REQUIRED Calculate the cost of the stock destroyed in the flood. The vehicle which Aziz sold during the year ended 30 June 2012 had been purchased on 30 September 2009 for $16 000. Aziz depreciates his vehicle at 25% per annum using the straight line method. He charges a full year's depreciation in the year of purchase and none in the year of disposal. He received $5 000 as a trade-in allowance for the new vehicle. REQUIRED Calculate the profit or loss on the disposal of the vehicle. For Examiner's Use Aziz depreciates his fixtures at 10% per annum using the reducing balance method. He also wants to create a provision for doubtful debts equal to 3% of his trade receivables. At 30 June 2012 he had prepaid expenses of $320. REQUIRED Prepare Aziz's income statement for the year ended 30 June 2012.
9706_w12_qp_21
THEORY
2012
Paper 2, Variant 1
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