3. Financial accounting (A Level)
A section of Accounting, 9706
Listing 10 of 734 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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Questions Discovered
734