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:
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£dr
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£cr
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£1 Ordinary share capital
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100,000
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Profit and loss account (01/03/15)
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186,000
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Long-term bank loan
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180,000
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Sales
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1,830,000
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Purchases
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1,240,000
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Inventory (01/03/15)
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36,000
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Accounts receivable
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81,000
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Prov. for doubtful debts
(01/03/15)
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2,000
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Accounts payable
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74,000
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Business rates
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44,000
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Insurances
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37,000
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Energy costs
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59,000
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Communication expenses
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33,000
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Audit fee
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10,000
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Advertising
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62,000
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Loan interest paid
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9,000
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Payroll costs
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182,000
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Premises at cost
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440,000
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Equipment at cost
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220,000
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Equipment depreciation (01/03/15)
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80,000
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Bank
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2,000
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Cash
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1,000
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------------
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2,454,000
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2,454,000
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Notes at 29 February 2016:
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•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
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29 February 2016.
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[13]
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b)
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Prepare the position statement
(balance sheet) as at 29 February 2016.
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[12]
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c)
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Explain the principal features of
the following sources of finance:
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i
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Ordinary shares
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ii
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Leasing
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iii
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Debentures
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[5
each]
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Continued overleaf
2. a) The
following information relates to the time sheet of Abdul Manof:
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Basic
time
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Overtime
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Monday
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7
hours
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1.0
hours
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Tuesday
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7
hours
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2.0
hours
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Wednesday
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7
hours
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2.0
hours
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Thursday
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7
hours
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1.5
hours
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Friday
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7
hours
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nil
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Saturday
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nil
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4
hours
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Abdul earns a basic rate of pay of
£10 per hour and is paid overtime at time and a quarter.
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Income tax is payable at the rate
of 20% on gross earnings.
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National Insurance is payable at
the rate of 10% on gross earnings.
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TASKS
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Calculate:
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i
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Abdul’s gross pay.
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[2]
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ii
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Abdul’s net pay.
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[2]
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b)
The budgeted data as
regards a potential new product is as follows:
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£
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Proposed selling price per unit
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70
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Budgeted variable cost per unit
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40
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Fixed costs associated with the
product
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360,000
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