This paper concentrates on the primary theme of a)Prepare the income statement (trading and profit and loss account) for the year ended 29 February 2016. [13] b) Prepare the position statement (balance sheet) as at 29 February 2016. [12] c) Explain the principal features of the following sources of f in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
ACCOUNTING
Instructions to candidates:
a) Time allowed: Three hours (plus an extra ten minutes’ reading
time at the start – do not write anything during this time)
b) Answer Question 1 and
any THREE other questions
c) Question 1 carries 40% of the marks, all other questions carry
20% of the marks. Marks for each question are shown in [ ]
d) Non-programmable calculators
are permitted in this examination
1. You work as the
accountant of a company called SLR Ltd, and have just taken out the trial
balance as at 29 February 2016:
|
£dr
|
£cr
|
£1 Ordinary share capital
|
|
100,000
|
Profit and loss account (01/03/15)
|
|
186,000
|
Long-term bank loan
|
|
180,000
|
Sales
|
|
1,830,000
|
Purchases
|
1,240,000
|
|
Inventory (01/03/15)
|
36,000
|
|
Accounts receivable
|
81,000
|
|
Prov. for doubtful debts
(01/03/15)
|
|
2,000
|
Accounts payable
|
|
74,000
|
Business rates
|
44,000
|
|
Insurances
|
37,000
|
|
Energy costs
|
59,000
|
|
Communication expenses
|
33,000
|
|
Audit fee
|
10,000
|
|
Advertising
|
62,000
|
|
Loan interest paid
|
9,000
|
|
Payroll costs
|
182,000
|
|
Premises at cost
|
440,000
|
|
Equipment at cost
|
220,000
|
|
Equipment depreciation (01/03/15)
|
|
80,000
|
Bank
|
|
2,000
|
Cash
|
1,000
|
|
|
------------
|
------------
|
|
2,454,000
|
2,454,000
|
Notes at 29 February 2016:
|
=======
|
=======
|
|
|
•Inventory was valued at £39,000
•Business rates prepaid amounted to £4,000
•Advertising expenses owing amounted to £6,000
•The directors have decided to adjust the
provision for doubtful debts to £5,000
•The equipment is to be depreciated by 20% on
cost
•The directors wish to provide £20,000 for
taxation
•The directors have declared a dividend of 12p
per share
TASKS
a)
Prepare the income
statement (trading and profit and loss account) for the year ended
|
29 February 2016.
|
[13]
|
b)
|
Prepare the position statement
(balance sheet) as at 29 February 2016.
|
[12]
|
c)
|
Explain the principal features of
the following sources of finance:
|
|
|
i
|
Ordinary shares
|
|
|
ii
|
Leasing
|
|
|
iii
|
Debentures
|
[5
each]
|
Continued overleaf
2. a) The
following information relates to the time sheet of Abdul Manof:
|
|
Basic
time
|
Overtime
|
Monday
|
7
hours
|
1.0
hours
|
Tuesday
|
7
hours
|
2.0
hours
|
Wednesday
|
7
hours
|
2.0
hours
|
Thursday
|
7
hours
|
1.5
hours
|
Friday
|
|
7
hours
|
nil
|
Saturday
|
nil
|
4
hours
|
Abdul earns a basic rate of pay of
£10 per hour and is paid overtime at time and a quarter.
|
Income tax is payable at the rate
of 20% on gross earnings.
|
National Insurance is payable at
the rate of 10% on gross earnings.
|
TASKS
|
|
|
Calculate:
|
|
|
i
|
Abdul’s gross pay.
|
[2]
|
ii
|
Abdul’s net pay.
|
[2]
|
b)
The budgeted data as
regards a potential new product is as follows:
|
£
|
Proposed selling price per unit
|
70
|
Budgeted variable cost per unit
|
40
|
Fixed costs associated with the
product
|
360,000
|
|
=======
|