3. Financial accounting (A Level)
A section of Accounting, 9706
Listing 10 of 734 questions
Asif operates a delivery service and does not keep proper accounting records. He provided the following information for the year ended 30 June 2014. $ Cash in hand at 1July 2013 3 270 Cash in hand at 30 June 2014 2 349 Cash receipts and payments: Vehicle repairs 2 400 Fuel payments for vehicles 14 301 Driver’s wages 4 748 Rent of a garage 1 600 Sundry expenses 2 972 Drawings 11 450 Receipts from sale of old vehicle 1 300 Cash stolen by Asif’s driver Cash received from customers ? REQUIRED Prepare Asif’s cash account for the year ended 30 June 2014. Additional information $ Trade receivables at 1 July 2013 Trade receivables at 30 June 2014 Bad debts written off during the year ended 30 June 2014 REQUIRED Calculate Asif’s revenue figure for the year ended 30 June 2014. Additional information The vehicle which had been sold was purchased in May 2012 for $6200. Asif’s policy is to depreciate the vehicles at 50% per annum using the reducing balance method. A full year’s depreciation is charged in the year of acquisition. No depreciation is charged in the year of disposal. At 30 June 2014 driver’s wages of $200 were owing and garage rent of $400 was prepaid. Question 1is on the next page. REQUIRED Prepare Asif’s income statement for the year ended 30 June 2014. Additional information Asif is considering introducing a system of credit control. REQUIRED Explain the benefits this may bring to the business. State two ratios that Asif could use to measure the profitability of his business.
9706_w14_qp_23
THEORY
2014
Paper 2, Variant 3
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Questions Discovered
734