3. Financial accounting (A Level)
A section of Accounting, 9706
Listing 10 of 734 questions
For Examiner's Use The following is the receipts and payments account of the Rumbledethumps Bowling Club for the year ended 30 September 2009. Receipts Payments $ $ Opening balances Greenkeeper's wages 25 000 Cash Insurance 3 450 Bank current account 12 150 Furniture for clubhouse 2 150 Bank deposit account 84 500 Secretary's honorarium 2 000 Subscriptions General expenses 8 950 Ordinary 31 200 Clubhouse repairs 3 540 Life 10 000 Band for dinner dance Café takings 94 320 Other dance expenses 4 730 Dinner dance 6 000 Café refreshments 43 500 Café wages 23 500 Clubhouse rates 4 500 Closing balances Cash Bank current account 10 980 Bank deposit account 105 690 239 020 239 020 The following information is also available: Other assets and liabilities of the club at 30 September $ $ Clubhouse 120 000 120 000 Café refreshment stock 9 500 10 500 Creditors for café refreshments 6 700 7 900 Insurance prepaid Rates accrued Furniture and fittings 26 200 25 400 Subscriptions prepaid 2 200 2 400 Subscriptions due and unpaid 2 800 2 600 Life membership was introduced on 1 October 2008 when five life members were admitted and paid $2000 each. It was decided that life membership should be accounted for separately and credited to ordinary revenue over twenty years, in equal amounts. Interest on the bank deposit account of $4500 for the year ended 30 September 2009 had not been taken into account at the year end. For Examiner's Use REQUIRED Prepare the café trading account for the year ended 30 September 2009. For Examiner's Use Prepare the club income and expenditure account for the year ended 30 September 2009. For Examiner's Use Prepare the club balance sheet at 30 September 2009. For Examiner's Use State two advantages and two disadvantages of using a receipts and payments account instead of an income and expenditure account, in a non-trading organisation.
9706_w09_qp_21
THEORY
2009
Paper 2, Variant 1
View
For Examiner's Use Alex's fixed asset accounts and provision for depreciation on fixed asset accounts for the year ended 30 April 2008 were as follows: Furniture and equipment account $000 $000 1 May Balance b/d 2 700 5 July Disposal 3 June Bank 30 April Balance c/d 2 970 3 420 3 420 1 May Balance b/d 2 970 Provision for depreciation on furniture and equipment account $000 $000 5 July Disposal 1 May Balance b/d 30 April Balance c/d 30 April Profit & loss 1 242 1 242 1 May Balance b/d Motor vehicles account $000 $000 1 May Balance b/d 1 560 3 Oct Disposal 3 Oct Bank 30 April Balance c/d 1 800 2 130 2 130 1 May Balance b/d 1 800 Provision for depreciation on motor vehicles account $000 $000 3 Oct Disposal 1 May Balance b/d 30 April Balance c/d 30 April Profit & loss 1 125 1 125 1 May Balance b/d For Examiner's Use REQUIRED Prepare the following accounts for the year ended 30 April 2009: Furniture and equipment Motor vehicles Provision for depreciation on furniture and equipment For Examiner's Use Provision for depreciation on motor vehicles Disposal of furniture and equipment Disposal of motor vehicles. For Examiner's Use Explain the term ‘depreciation’ and give one example.
9706_w09_qp_22
THEORY
2009
Paper 2, Variant 2
View
Iqbal runs a small trading business which has been in operation for several years. Iqbal pays all sales receipts into the business bank account. The following is a summary of the bank account for the year ended 31 March 2011. Bank account summary for the year ended 31 March 2011 $ $ Balance b/d 4 650 Trade payables 37 000 Trade receivables 85 000 Motor expenses 4 100 Cash sales 24 000 Rent 6 000 Capital 36 000 Rates 2 200 Loan 14 000 Wages 43 000 Fixtures and fittings 40 000 Additional information Discounts received from suppliers during the year ended 31 March 2011 were $500. Iqbal allowed his customers discounts of $1400 during the year ended 31 March 2011. Iqbal had taken goods at a cost price of $2400 for his personal use. The loan was received on 1 October 2010 and interest is payable at 10% per annum. The loan is due to be repaid in five years’ time. Iqbal has decided to create a provision for doubtful debts of 3% of the trade receivables outstanding at 31 March 2011. Included in the wages figure in the bank account summary are Iqbal’s drawings of $25 000. The remaining assets and liabilities of Iqbal were: 1 April 2010 31 March 2011 $ $ Inventory at cost 8 000 9 200 Fixtures and fittings (Net Book Value) 36 000 68 000 Delivery van (Net Book Value) 10 000 7 500 Trade receivables 7 200 8 300 Trade payables 3 400 3 700 Motor expenses owing – Rent prepaid Rates owing – Rates prepaid – REQUIRED Prepare the income statement (trading and profit and loss account) for Iqbal for the year ended 31 March 2011. Prepare the statement of financial position (balance sheet) for Iqbal at 31 March 2011. [Total 30]
9706_w11_qp_21
THEORY
2011
Paper 2, Variant 1
View
Questions Discovered
734