3. Financial accounting (A Level)
A section of Accounting, 9706
Listing 10 of 734 questions
The following trial balance was extracted from the Mighty Wholesale Company’s books at 30 April 2010. Dr $000 Cr $000 Revenue (Sales) Ordinary goods purchased (Purchases) Property (Buildings) at cost Warehouse fittings at cost Inventory (Stock) at 1 May 2009 Capital 12% loan repayable 2015 Wages Provisions for depreciation at 1 May 2009: Property (Buildings) Warehouse fittings Trade receivables (Debtors) Trade payables (Creditors) Cash and cash equivalents (Bank) Distribution expenses Business rates Insurance Advertising Drawings Loan interest Additional information: Inventory at 30 April 2010 cost $230 000. This includes inventory costing $20 000 which has a net realisable value of $9000. Warehouse fittings were sold during the year. The proceeds of $10 000 were debited to the bank account and credited to the property at cost account. No other entry has been made regarding this transaction. The fittings sold had cost $52 000 and the total depreciation charged to them by 1 May 2009 amounted to $41 000. No depreciation is charged in the year of disposal. Depreciation is to be provided for as follows: Property 2% on cost Warehouse fittings 25% reducing balance Other payables at 30 April 2010 are: Wages $12 000 Distribution expenses $5 000 Loan interest ? (The loan was taken out in 2005) Other receivable at 30 April 2010 is: Insurance $2000 REQUIRED Prepare the income statement (trading and profit and loss account) for the year ended 30 April 2010. Prepare the balance sheet at 30 April 2010.
9706_s10_qp_21
THEORY
2010
Paper 2, Variant 1
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Questions Discovered
734