3. Financial accounting (A Level)
A section of Accounting, 9706
Listing 10 of 734 questions
Shaun is a sole trader. He pays all the sales receipts into the business bank account. He provided his accountant with the following information for the year ended 31 December 2011. Bank account summary for the year ended 31 December 2011 Dr. $ Cr. $ Rent received 16 800 Balance b/d 5 620 Trade receivables 203 200 Trade payables 122 460 Cash sales 18 510 General expenses 22 000 Wages 32 560 Motor vehicles 19 200 Equipment 17 400 Drawings 27 560 Shaun’s remaining assets and liabilities were: 1 January 2011 31 December 2011 $ $ Inventory (at cost) 22 300 17 400 Premises (at cost) 100 000 100 000 Equipment (net book value) 28 400 27 600 Motor vehicles (net book value) 65 000 68 200 Trade receivables 22 400 28 600 Trade payables 17 500 19 470 General expenses prepaid 1 100 Rent received prepaid – Rent received owing – 1 300 Wages owing 2 400 Additional information: Shaun allowed his customers discounts of $4000. Discounts received from suppliers were $3100. Shaun has decided to create a provision for doubtful debts of 2% of the trade receivables outstanding at 31 December 2011. General expenses in the bank account summary include an amount of $660 which relates to the payment of Shaun’s private house insurance. Shaun had taken goods at a cost price of $3700 for his personal use. For Examiner's Use REQUIRED Calculate the value of Shaun’s sales and ordinary goods purchased for the year ended 31 December 2011. Sales Ordinary goods purchased For Examiner's Use Prepare Shaun’s income statement for the year ended 31 December 2011. For Examiner's Use Prepare Shaun's statement of financial position at 31 December 2011.
9706_s12_qp_23
THEORY
2012
Paper 2, Variant 3
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The treasurer of the Ocean Fishing Club has prepared the following receipts and payments account for the year ended 31 March 2014. Receipts Payments $ $ Balance at 1 April 2013 6 570 Payments to trade payables 2 974 Subscriptions received 7 400 Shop wages 3 670 Donations 1 450 Administration expenses 2 790 Receipts from annual family day 2 300 New equipment 5 600 Shop takings 7 690 Repairs to equipment 2 500 Transfer to deposit account 7 000 _____ Balance c/d 25 410 25 410 1 April 2013 31 March 2014 $ $ Shop inventory Trade payables for shop Deposit account 6 000 13 000 Equipment at cost 9 800 ? Provision for depreciation 2 940 ? Repairs to equipment owing Shop wages due Shop fittings at net book value Additional information The donations are to be capitalised. There are 350 members who pay an annual subscription of $20. At 1 April 2013, 30 members had paid in advance for the coming year but 24 members had not yet paid for the year ended 31 March 2013. At 31 March 2014, 10 members had yet to pay and some members had paid in advance but the treasurer has not yet calculated how many. Interest of 5% per annum is credited to the deposit account by the bank on 31 March each year. This has not yet been entered in the books. The transfer of $7000 to the deposit account was made on the 31 March 2014. Equipment is depreciated at 15% per annum using the reducing balance method. A full year’s depreciation is charged in the year of purchase. REQUIRED Prepare the shop trading account for the year ended 31 March 2014. Prepare the income and expenditure account for the year ended 31 March 2014. Prepare the statement of financial position at 31 March 2014. Additional information The club wishes to buy a new boat for use by members. It will cost $12 500. REQUIRED Suggest three ways the club could raise the finance to purchase the new boat. State one advantage and one disadvantage of each method you have suggested. 1 Advantage Disadvantage
9706_s14_qp_23
THEORY
2014
Paper 2, Variant 3
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Questions Discovered
734