1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Charles Altas does not keep books on a double-entry basis. He provided the following information. Charles Altas Statement of Financial Position at 1 January 2013 $ $ Non-current assets 60 000 Current assets Inventory 29 600 Trade receivables 33 000 Cash and cash equivalents 9 800 72 400 Total assets 132 400 Equity and liabilities Capital at 1 January 2013 108 600 Current liabilities Trade payables 18 200 Other payables 5 600 23 800 132 400 Additional information for the year ended 31 December 2013 $ Cheques received from credit customers 166 660 Discounts allowed 8 600 Cash takings banked 30 000 Cheques paid to credit suppliers 155 690 Discounts received 8 200 Expenses paid 26 100 Purchase of non-current assets 20 000 Returns inwards 4 200 Returns outwards 4 500 Bad debts 2 200 All cash takings were banked except for $29 000. Of this $10 000 was used to pay wages and the remainder kept for personal use. All other payments were made by cheque. On 31 December 2013 Charles Altas had the following assets and liabilities: $ Non-current assets 74 000 Trade receivables 20 832 Trade payables 14 930 Inventory 35 200 Other receivables 1 720 Cash and cash equivalents 4 670 No non-current assets were disposed of during 2013. All purchases were made on credit. REQUIRED Prepare the sales ledger control account for the year ended 31 December 2013. Prepare the purchases ledger control account for the year ended 31 December 2013. Calculate the total expenses for the year ended 31 December 2013. Prepare the income statement for the year ended 31 December 2013.
9706_s14_qp_22
THEORY
2014
Paper 2, Variant 2
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Meena did not keep full accounting records. She was advised to keep her books of account using the double entry system. REQUIRED State three benefits a business gains from maintaining a system of double entry book-keeping. Additional information Meena now uses the double entry system of book-keeping. At the end of January the total of the balances in the sales ledger was $34 524. However, the balance on the sales ledger control account was $33 205. On investigation she found the following errors: The sales journal had been undercast by $1649. A cheque received had been correctly entered in the cash book as $650 but was entered in the sales ledger as $560. An irrecoverable debt, $420, had been written off in the sales ledger but not entered in the control account. A credit note issued for $160 had been completely omitted from the books of account. REQUIRED Prepare a reconciliation between the sales ledger control account and the sales ledger balances at 31 January. Sales ledger control account Description Add ($) Less ($) Total ($) Opening balance 33 205 Sales ledger balances Description Add ($) Less ($) Total ($) Opening balance 34 524 State three reasons why there might be a credit balance on a customer’s account in the sales ledger. Additional information Meena is considering charging interest on the full account balances of her customers who do not pay promptly. REQUIRED Advise Meena whether or not she should take this course of action. Justify your answer.
9706_s17_qp_21
THEORY
2017
Paper 2, Variant 1
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Questions Discovered
1775