3. Financial accounting (A Level)
A section of Accounting, 9706
Listing 10 of 734 questions
For Examiner's Use Amah Retto's ledger accounts for the year ended 30 April 2008 showed the following balances: $ Premises at cost 250 000 Machinery at cost 52 000 Provision for depreciation on machinery at 1 May 2007 15 600 Provision for doubtful debts at 1 May 2007 Sales 243 000 Purchases 184 000 Sales returns 2 040 Purchases returns 1 980 Carriage inwards Carriage outwards Rent received 2 420 Discount allowed 1 800 Discount received 1 300 Electricity 2 100 General expenses 9 340 Stock at 1 May 2007 13 500 Debtors 9 000 Creditors 11 460 Bank (Credit) 8 260 Cash Drawings 18 600 Long-term loan at 11 % per annum 60 000 Capital ? Additional information at 30 April 2008 Stock was valued at $15 100. No interest had been paid or provided for on the loan, which had been taken out on 1 November 2007. Amah Retto's tenant had paid only eleven months' rent; one month's rent was due and unpaid. Electricity prepaid amounted to $40. General expenses accrued amounted to $50. Debts of $200 were to be written off. Depreciation was to be provided on machinery at 40 % using the reducing balance method. Doubtful debts provision was to be 3 % of debtors at the end of the year. For Examiner's Use REQUIRED Prepare Amah Retto's trading and profit and loss account for the year ended 30 April 2008. For Examiner's Use Prepare Amah Retto's balance sheet at 30 April 2008. For Examiner's Use Use the answers to and to calculate the following ratios to two decimal places. Current ratio; Liquid ratio; Rate of stock turnover; Gross profit as a percentage of sales; Net profit as a percentage of sales. For Examiner's Use State two reasons for calculating ratios. State four user groups who might be interested in or make use of accounting ratios.
9706_s08_qp_2
THEORY
2008
Paper 2, Variant 0
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Questions Discovered
734