This document contains information on the assets, liabilities, equity, and transactions of Sea Isle company for the year ending December 31, 2009. It provides details on the company's balance sheet accounts, changes to inventory balances, sales and cost of goods sold transactions, expenses, and required financial statements. It also includes several word problems involving cost accounting concepts like absorption and marginal costing, break-even analysis, inventory valuation, and overhead application.
This document contains an exam for the subject of financial accounting. It includes 5 questions covering topics such as creative accounting, lease accounting, accounting for property, plant and equipment, appropriate accounting treatments for different situations, and preparing financial statements for a company. The exam is 3 hours long and worth a total of 100 marks.
1. The document contains 11 examples of cost of production reports from various departments. Each example provides information on quantities, costs added, and how costs are accounted for units completed, work in process, and any abnormal losses or spoilage.
2. Key details in the reports include quantity schedules showing units received, completed, in process, and lost; costs charged by the department broken down by material, labor, overhead; and equivalent production calculations.
3. The examples demonstrate how to prepare cost of production reports and account for costs in different scenarios involving normal and abnormal losses, spoilage, and addition of materials.
Accounting 970643 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970643 paper 4 problem solving (supplementary topics) october november 2012
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
Accounting 970642 paper 4 problem solving (supplementary topics) october nove...alproelearning
This document consists of an exam paper with 3 questions regarding accounting topics. Question 1 involves preparing income statements and statements of financial position from limited information. Question 2 involves calculating variances for a company using standard costing with defective products. Question 3 involves calculating variances, explaining effects on a standard costing system, and identifying the best costing method for different situations. The document provides detailed information and calculations required to answer the questions.
This document contains information on the assets, liabilities, equity, and transactions of Sea Isle company for the year ending December 31, 2009. It provides details on the company's balance sheet accounts, changes to inventory balances, sales and cost of goods sold transactions, expenses, and required financial statements. It also includes several word problems involving cost accounting concepts like absorption and marginal costing, break-even analysis, inventory valuation, and overhead application.
This document contains an exam for the subject of financial accounting. It includes 5 questions covering topics such as creative accounting, lease accounting, accounting for property, plant and equipment, appropriate accounting treatments for different situations, and preparing financial statements for a company. The exam is 3 hours long and worth a total of 100 marks.
1. The document contains 11 examples of cost of production reports from various departments. Each example provides information on quantities, costs added, and how costs are accounted for units completed, work in process, and any abnormal losses or spoilage.
2. Key details in the reports include quantity schedules showing units received, completed, in process, and lost; costs charged by the department broken down by material, labor, overhead; and equivalent production calculations.
3. The examples demonstrate how to prepare cost of production reports and account for costs in different scenarios involving normal and abnormal losses, spoilage, and addition of materials.
Accounting 970643 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970643 paper 4 problem solving (supplementary topics) october november 2012
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
Accounting 970642 paper 4 problem solving (supplementary topics) october nove...alproelearning
This document consists of an exam paper with 3 questions regarding accounting topics. Question 1 involves preparing income statements and statements of financial position from limited information. Question 2 involves calculating variances for a company using standard costing with defective products. Question 3 involves calculating variances, explaining effects on a standard costing system, and identifying the best costing method for different situations. The document provides detailed information and calculations required to answer the questions.
Accounting 970641 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970641 paper 4 problem solving (supplementary topics) october november 2012
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
The document provides details on budgeting for Wahid Industries, a fan manufacturing company in Pakistan. It includes sales, production, material, labor, overhead, and cash budgets for the fiscal year. The sales budget forecasts 75,000 fans will be sold for total revenue of $262.5 million. The production budget sets the fan production needs. The cash budget tracks expected cash collections against planned expenditures to project ending cash balances each quarter.
The document describes key concepts in managerial and financial accounting. It defines the differences between managerial and financial accounting in terms of users, reports, purpose, and verification. It also defines cost concepts like direct/indirect costs, fixed/variable costs, product costs, and period costs. Finally, it illustrates how to prepare key accounting statements for a manufacturing business, including the statement of cost of goods manufactured, income statement, and balance sheet.
Solutions Manual for Managerial Accounting 4th Edition by Braunriven020
This document provides solutions to exercises from Chapter 2 of the textbook "Managerial Accounting 4th Edition by Braun". It includes classification of costs into relevant categories such as direct materials, direct labor, manufacturing overhead and period costs. There are also calculations of inventoriable product costs, prime costs and conversion costs. Short answer and multiple choice questions from the chapter are provided along with explanations and solutions.
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
This document contains information and questions for the ACCT 505 Entire Course. It includes discussion questions, exams, quizzes, case studies and course projects for each week of the course. It also provides 3 sets of final exam questions, sample exams, and tutorials for external review.
This document provides information and questions for the ACCT 505 Entire Course. It includes tutorials, discussion questions, exams, quizzes, case studies and course projects covering topics like job order and process costing systems, measuring performance, segment reporting, relevant costs, capital budgeting, and absorption costing. The document also provides 3 sets of final exam questions testing understanding of topics like cost of goods manufactured, break-even analysis, flexible budgeting, and make-or-buy analysis.
1. The document contains accounting problems related to cost of goods manufactured, cost of goods sold, break-even analysis, and capital budgeting.
2. One problem involves calculating predetermined overhead rate and preparing a cash budget. Another requires constructing a flexible budget performance report.
3. The last problem asks the student to calculate net present value of a new product investment and determine if the company should proceed based on the NPV.
1. Various master data such as cost elements, activity types, cost centers, overhead keys, overhead groups, calculation bases, costing sheets, and costing variants are created to enable product costing.
2. Materials for raw materials and finished goods are created along with their associated data such as BOM, routings, and cost components.
3. Planning is done for cost centers, machine hours, and overhead rates.
4. The document provides steps to set up product costing in SAP including creating necessary master data, materials, BOM, routings and planning.
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
The document discusses cost accounting concepts and classifications. It defines different types of costs such as product costs, period costs, expenses, direct materials, direct labor, manufacturing overhead. It also discusses how these costs are classified on financial statements and how they flow through the manufacturing process. Schedules for calculating cost of goods manufactured and sold are presented with examples.
Solution Manual Cost Accounting Planning and Control by Matz.Hammer and Usry ...Bushra Sultana Malik
This Solution manual Cost Accounting Planning and Control.
Chapter 3 is not Complete.But The Complete chapter is Uploaded See my other Uploads,Chapter 3 Problems are Available.
This document discusses lattice energy and related concepts:
1) It defines lattice energy as the enthalpy change when one mole of an ionic solid forms from its gaseous ions, and explains how it depends on ion charge and radius.
2) Born-Haber cycles allow calculation of lattice energy by considering standard enthalpy changes in the step-wise formation of an ionic solid from its elements.
3) Ion polarization occurs when cation charge density and anion size lead to distortion of the anion electron cloud, influencing thermal stability.
This document discusses the properties and reactions of Group II elements and their compounds. It describes how atomic radius and ionization energy increase down the group, while electronegativity decreases. Group II elements react vigorously with oxygen and water to form oxides and hydroxides. Their oxides are basic and react with acids, while hydroxides are sparingly soluble bases. Thermal decomposition stability increases down the group for nitrates and carbonates. Important uses include magnesium oxide as a refractory and calcium compounds to make cement and treat acidic soil.
Chemistry zimsec chapter 8 chemical equilibriaalproelearning
(1) This document discusses chemical equilibria, including reversible reactions, factors that affect equilibrium, and acid-base theories.
(2) It describes how reversible reactions reach equilibrium when the rates of the forward and reverse reactions are equal. Le Chatelier's principle states that if a stress is applied to a system at equilibrium, it will shift in a way to counteract the stress.
(3) Equilibrium constants Kc and Kp are introduced, which do not depend on concentration or pressure changes. The Brønsted-Lowry acid-base theory defines acids as proton donors and bases as proton acceptors.
This document summarizes atomic structure and isotopes. It defines protons, neutrons, and electrons, and describes their relative masses and charges. It explains that the nucleus contains protons and neutrons, which make up most of an atom's mass. The document also discusses how subatomic particles behave in electric fields based on their charge. It defines nucleon number and proton number, and how they relate to the composition of atoms and ions. Finally, it defines isotopes as atoms of the same element with different numbers of neutrons, and notes they have similar chemical properties but different physical properties like mass.
Chemistry zimsec chapter 9 chemical periodicityalproelearning
This document summarizes key concepts about chemical periodicity, including the various blocks and periods in the periodic table. It describes trends in atomic properties like atomic radius, ionization energy, and electronegativity across periods and down groups. These trends are explained by factors like nuclear charge, atomic size, and shielding effects. Common reactions of representative elements like formation of oxides and chlorides from the third period are presented, along with equations. Structures and bonding of these compounds are discussed as well as their reactions with water.
Chemistry zimsec chapter 6 chemical energeticsalproelearning
1) The document discusses chemical energetics, specifically enthalpy changes, standard enthalpy changes, and Hess' law.
2) It defines exothermic and endothermic reactions, and explains how to calculate enthalpy changes from experimental temperature change data using standard formulas.
3) Standard enthalpy changes are discussed for various types of reactions including formation, combustion, neutralization, and others. Hess' law is introduced which states that the total enthalpy change is independent of reaction path as long as initial and final states are the same.
1) Alcohols undergo several characteristic reactions including combustion producing carbon dioxide and water, dehydration producing alkenes, reaction with sodium producing alkoxides and hydrogen gas, and oxidation producing different products depending on whether the alcohol is primary, secondary, or tertiary.
2) Alcohols can be classified as primary, secondary, or tertiary depending on whether the carbon attached to the hydroxyl group has zero, one, or two alkyl groups respectively, and this classification determines how the alcohol will react during oxidation.
3) Esterification involves heating an alcohol and a carboxylic acid together with a catalyst such as sulfuric acid to produce an ester, with the general form of R
Accounting 970641 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970641 paper 4 problem solving (supplementary topics) october november 2012
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
The document provides details on budgeting for Wahid Industries, a fan manufacturing company in Pakistan. It includes sales, production, material, labor, overhead, and cash budgets for the fiscal year. The sales budget forecasts 75,000 fans will be sold for total revenue of $262.5 million. The production budget sets the fan production needs. The cash budget tracks expected cash collections against planned expenditures to project ending cash balances each quarter.
The document describes key concepts in managerial and financial accounting. It defines the differences between managerial and financial accounting in terms of users, reports, purpose, and verification. It also defines cost concepts like direct/indirect costs, fixed/variable costs, product costs, and period costs. Finally, it illustrates how to prepare key accounting statements for a manufacturing business, including the statement of cost of goods manufactured, income statement, and balance sheet.
Solutions Manual for Managerial Accounting 4th Edition by Braunriven020
This document provides solutions to exercises from Chapter 2 of the textbook "Managerial Accounting 4th Edition by Braun". It includes classification of costs into relevant categories such as direct materials, direct labor, manufacturing overhead and period costs. There are also calculations of inventoriable product costs, prime costs and conversion costs. Short answer and multiple choice questions from the chapter are provided along with explanations and solutions.
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
This document contains information and questions for the ACCT 505 Entire Course. It includes discussion questions, exams, quizzes, case studies and course projects for each week of the course. It also provides 3 sets of final exam questions, sample exams, and tutorials for external review.
This document provides information and questions for the ACCT 505 Entire Course. It includes tutorials, discussion questions, exams, quizzes, case studies and course projects covering topics like job order and process costing systems, measuring performance, segment reporting, relevant costs, capital budgeting, and absorption costing. The document also provides 3 sets of final exam questions testing understanding of topics like cost of goods manufactured, break-even analysis, flexible budgeting, and make-or-buy analysis.
1. The document contains accounting problems related to cost of goods manufactured, cost of goods sold, break-even analysis, and capital budgeting.
2. One problem involves calculating predetermined overhead rate and preparing a cash budget. Another requires constructing a flexible budget performance report.
3. The last problem asks the student to calculate net present value of a new product investment and determine if the company should proceed based on the NPV.
1. Various master data such as cost elements, activity types, cost centers, overhead keys, overhead groups, calculation bases, costing sheets, and costing variants are created to enable product costing.
2. Materials for raw materials and finished goods are created along with their associated data such as BOM, routings, and cost components.
3. Planning is done for cost centers, machine hours, and overhead rates.
4. The document provides steps to set up product costing in SAP including creating necessary master data, materials, BOM, routings and planning.
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
For more course tutorials visit
www.acct505.com
ACCT 505 Week 1-7 All Discussion Questions
ACCT 505 Week 1 Case Study
ACCT 505 Week 2 Quiz Job Order and Process Costing Systems
ACCT 505 Week 2 Quiz Set 2
The document discusses cost accounting concepts and classifications. It defines different types of costs such as product costs, period costs, expenses, direct materials, direct labor, manufacturing overhead. It also discusses how these costs are classified on financial statements and how they flow through the manufacturing process. Schedules for calculating cost of goods manufactured and sold are presented with examples.
Solution Manual Cost Accounting Planning and Control by Matz.Hammer and Usry ...Bushra Sultana Malik
This Solution manual Cost Accounting Planning and Control.
Chapter 3 is not Complete.But The Complete chapter is Uploaded See my other Uploads,Chapter 3 Problems are Available.
This document discusses lattice energy and related concepts:
1) It defines lattice energy as the enthalpy change when one mole of an ionic solid forms from its gaseous ions, and explains how it depends on ion charge and radius.
2) Born-Haber cycles allow calculation of lattice energy by considering standard enthalpy changes in the step-wise formation of an ionic solid from its elements.
3) Ion polarization occurs when cation charge density and anion size lead to distortion of the anion electron cloud, influencing thermal stability.
This document discusses the properties and reactions of Group II elements and their compounds. It describes how atomic radius and ionization energy increase down the group, while electronegativity decreases. Group II elements react vigorously with oxygen and water to form oxides and hydroxides. Their oxides are basic and react with acids, while hydroxides are sparingly soluble bases. Thermal decomposition stability increases down the group for nitrates and carbonates. Important uses include magnesium oxide as a refractory and calcium compounds to make cement and treat acidic soil.
Chemistry zimsec chapter 8 chemical equilibriaalproelearning
(1) This document discusses chemical equilibria, including reversible reactions, factors that affect equilibrium, and acid-base theories.
(2) It describes how reversible reactions reach equilibrium when the rates of the forward and reverse reactions are equal. Le Chatelier's principle states that if a stress is applied to a system at equilibrium, it will shift in a way to counteract the stress.
(3) Equilibrium constants Kc and Kp are introduced, which do not depend on concentration or pressure changes. The Brønsted-Lowry acid-base theory defines acids as proton donors and bases as proton acceptors.
This document summarizes atomic structure and isotopes. It defines protons, neutrons, and electrons, and describes their relative masses and charges. It explains that the nucleus contains protons and neutrons, which make up most of an atom's mass. The document also discusses how subatomic particles behave in electric fields based on their charge. It defines nucleon number and proton number, and how they relate to the composition of atoms and ions. Finally, it defines isotopes as atoms of the same element with different numbers of neutrons, and notes they have similar chemical properties but different physical properties like mass.
Chemistry zimsec chapter 9 chemical periodicityalproelearning
This document summarizes key concepts about chemical periodicity, including the various blocks and periods in the periodic table. It describes trends in atomic properties like atomic radius, ionization energy, and electronegativity across periods and down groups. These trends are explained by factors like nuclear charge, atomic size, and shielding effects. Common reactions of representative elements like formation of oxides and chlorides from the third period are presented, along with equations. Structures and bonding of these compounds are discussed as well as their reactions with water.
Chemistry zimsec chapter 6 chemical energeticsalproelearning
1) The document discusses chemical energetics, specifically enthalpy changes, standard enthalpy changes, and Hess' law.
2) It defines exothermic and endothermic reactions, and explains how to calculate enthalpy changes from experimental temperature change data using standard formulas.
3) Standard enthalpy changes are discussed for various types of reactions including formation, combustion, neutralization, and others. Hess' law is introduced which states that the total enthalpy change is independent of reaction path as long as initial and final states are the same.
1) Alcohols undergo several characteristic reactions including combustion producing carbon dioxide and water, dehydration producing alkenes, reaction with sodium producing alkoxides and hydrogen gas, and oxidation producing different products depending on whether the alcohol is primary, secondary, or tertiary.
2) Alcohols can be classified as primary, secondary, or tertiary depending on whether the carbon attached to the hydroxyl group has zero, one, or two alkyl groups respectively, and this classification determines how the alcohol will react during oxidation.
3) Esterification involves heating an alcohol and a carboxylic acid together with a catalyst such as sulfuric acid to produce an ester, with the general form of R
1. Electrochemistry involves redox reactions where one element is oxidized and another is reduced. Oxidation is the loss of electrons and an increase in oxidation number, while reduction is the gain of electrons and a decrease in oxidation number.
2. Electrolysis is the passage of an electric current through an ionic substance to cause a non-spontaneous redox reaction. Oxidation occurs at the anode and reduction at the cathode.
3. Aluminum is extracted from bauxite via electrolysis. Bauxite is dissolved in molten cryolite to lower its melting point, then electrolysis separates aluminum ions at the cathode.
The document discusses the physical and chemical properties of Group IV elements and their compounds. It covers:
1) The variation in properties like melting point, electrical conductivity down the group due to changes in bonding and structure.
2) The tetrachlorides of Group IV elements which are volatile liquids that hydrolyze in water, with reactivity increasing down the group.
3) The two types of oxides formed - monoxides and dioxides. Their structures, acid-base properties and thermal stability are explained.
4) The relative stability of the +2 and +4 oxidation states decreases and increases down the group respectively. This affects the redox behavior of the elements.
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Chemistry zimsec chapter 2 atoms, molecules and stoichiometryalproelearning
This document provides an overview of Chapter 2 in a chemistry textbook, which covers topics including:
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- Using a mass spectrometer to determine relative isotopic masses and abundances
- The mole concept and amount of substance in relation to mass, volume of gases, and concentration of solutions
- Calculating empirical formulas from combustion data or elemental composition by mass and deducing molecular formulas
- Stoichiometry, including writing balanced chemical equations and ionic equations
This document summarizes key information about halogenoalkanes:
- Halogenoalkanes undergo nucleophilic substitution reactions like hydrolysis and reactions with cyanide ions or ammonia via SN1 or SN2 mechanisms. Tertiary halogenoalkanes favor SN1 while primary favor SN2.
- Chlorofluorocarbons (CFCs) were widely used but deplete the ozone layer. Their alternatives like HCFCs are less damaging but still pose issues.
- Other uses of halogenoalkanes include their inertness making fluoroalkanes useful as refrigerants and propellants, though concerns about ozone depletion drove a search for replacements like propane
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1) Transition elements have variable oxidation states due to their similar energy 4s and 3d electron levels. They can gain or lose electrons to form stable ions.
2) Transition elements form colored complexes when surrounded by ligands via coordinate bonding. Ligand exchange reactions can replace one ligand for another.
3) The shapes and colors of transition metal complexes are determined by the ligands present and the splitting of d orbitals. Different ligands cause different color changes through electron movement between d orbitals.
This document discusses reaction kinetics including:
1) Rate equations relate the rate of reaction to reactant concentrations and can be determined experimentally. The orders of reaction indicate how changing concentrations affect rate.
2) Reaction mechanisms involve multiple steps, with the rate determined by the slowest step. Molecularity refers to the number of species involved in a step.
3) Catalysts increase reaction rates by providing alternative reaction pathways. Heterogeneous catalysts involve different phases while homogeneous catalysts are the same phase as reactants. Common examples are discussed.
This document provides an overview of Chapter 22 from a chemistry textbook, which covers topics related to ionic equilibria including:
- pH, Ka, pKa and Kw values and their use in calculations involving strong and weak acids and bases.
- Acid-base titration curves and how they differ for strong-strong, strong-weak, weak-strong, and weak-weak acid-base titrations.
- How acid-base indicators work and their use in determining the endpoint of a titration.
It also lists learning outcomes for understanding these concepts and performing related calculations.
Zimbabwe Schools Examinations Council Accounting November 2005 Paper 2 Zimsec
1. ACCN2
M/SEM/102993/Jun14/E5
(JUN14ACCN201)
General Certificate of Education
Advanced Subsidiary Examination
June 2014
Accounting ACCN2
Unit 2 Financial and Management Accounting
Thursday 22 May 2014 1.30 pm to 3.00 pm
For this paper you must have:
a calculator.
Time allowed
1 hour 30 minutes
Instructions
Use black ink or black ball-point pen.
Fill in the boxes at the top of this page.
Answer all questions.
You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
All workings must be shown and clearly labelled; otherwise marks for
method may be lost.
Do all rough work in this book. Cross through any work you do not want
to be marked.
Information
The marks for questions are shown in brackets.
The maximum mark for this paper is 80.
Four of these marks will be awarded for:
– using good English
– organising information clearly
– using specialist vocabulary where appropriate.
Centre Number Candidate Number
Surname
Other Names
Candidate Signature
For Examiner’s Use
Examiner’s Initials
Question Mark
1
2
3
4
TOTAL
A
2. 2
(02)
M/Jun14/ACCN2
Do not write
outside the
box
Answer all questions in the spaces provided.
1 Total for this question: 24 marks
Mo is concerned about the cash flow of his business. He is able to provide the following
information to assist in the preparation of a cash budget.
May
2014
June
2014
July
2014
August
2014
September
2014
£ £ £ £ £
Sales 12 000 15 000 18 000 15 000 12 000
Purchases of goods for resale 6 000 7 000 8 000 8 500 9 000
Overheads 6 500 6 800 7 100 7 500 8 240
All sales are on credit. It is expected that 40% of customers will take advantage
of the cash discount of 2.5% that Mo offers and will pay in the month of sale. Of
the remaining 60%, it is expected that half will pay in the month after sale and the
remainder will pay two months after sale.
One supplier of Mo’s purchases of goods for resale demands that he pay cash
immediately. This supplier accounts for 10% of purchases. The other suppliers are
paid one month after the purchase has taken place.
Overheads are paid in the month they are incurred.
Mo intends to pay for non-current assets costing £10 800 in September 2014.
Mo will take cash drawings from the business equal to 10% of the total cash received
that month. However, this will never be less than £1500.
He expects his bank balance to be £6860 on 30 June 2014.
3. 3
(03)
M/Jun14/ACCN2
Do not write
outside the
box
Turn over
1 Prepare a cash budget for Mo’s business for each of the three months July, August and
September 2014. (A space for workings is provided on page 4.)
[24 marks]
Cash Budget for Mo for each of the 3 months ending 30 September 2014
July August September
£ £ £
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5. 5
M/Jun14/ACCN2
Do not write
outside the
box
Turn over
(05)
Turn over for the next question
DO NOT WRITE ON THIS PAGE
ANSWER IN THE SPACES PROVIDED
6. 6
(06)
M/Jun14/ACCN2
Do not write
outside the
box
2 Total for this question: 23 marks
The accountant of Weirwolf plc has begun preparing the financial statements for the year
ended 30 April 2014. However, she is absent from work due to illness and you have
been asked to complete the income statement on page 7 and the statement of changes in
equity on page 9.
The balances remaining in the books of account at 30 April 2014, following the
preparation of the first part of the income statement, are shown below.
£
6% Debentures 2024–26 600 000
Cash at bank 6 840
Debenture interest 36 000
Depreciation charge for the year 257 780
Directors’ remuneration 240 000
Interim dividend paid on 31 July 2013 120 000
Inventory 98 240
Non-current assets at cost 1 478 000
Ordinary shares of 20p each 1 200 000
Provision for depreciation 446 880
Retained earnings 876 590
Share premium 300 000
Taxation for the year ended 30 April 2014 107 788
Trade payables 89 309
Trade receivables 238 000
Additional information
The following have not been recorded in the books of account.
On 1 April, the Directors made a rights issue of ordinary shares. The issue was made
on the basis of 1 new share for every 3 existing shares held, at a price of 35p per share.
The issue was fully subscribed.
On 30 April, the Directors paid the final dividend of 2p per share. The dividend was paid
on all shares in issue at that date.
7. 7
(07)
M/Jun14/ACCN2
Do not write
outside the
box
Turn over
2 (a) Complete the income statement, showing clearly the profit for the year after tax.
(A space for workings is provided on page 8.)
[7 marks]
Income Statement for Weirwolf plc year ended 30 April 2014
£ £
Revenue 2 856 000
Cost of sales 1 142 400
Gross profit 1 713 600
Less expenses
Marketing 335 600
Administration 236 780
Distribution 68 500
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9. 9
(09)
M/Jun14/ACCN2
Do not write
outside the
box
Turn over
2 (b) Prepare the statement of changes in equity for the year ended 30 April 2014, using the
table below.
[16 marks]
[includes 2 marks for quality of presentation]
Statement of changes in equity for the year ended 30 April 2014
Issued share
capital
Share premium
Retained
earnings
Total
Workings.............................................................................................................................
............................................................................................................................................
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____
23
10. 10 Do not write
outside the
box
M/Jun14/ACCN2
(10)
3 Total for this question: 16 marks
Andy is the owner of a removal business called Murraymovers. The business owns
several motor vans that are used to move furniture.
Extract from the balance sheet of Murraymovers at 31 December 2012
Cost Depreciation Net book
to date value
£ £ £
Motor vans 90 000 30 000 60 000
During the year ended 31 December 2013 Andy purchased three motor vans in a
part-exchange arrangement agreed with Robson Motors. The details are as follows.
Andy purchased three new motor vans at a total cost of £45 000.
He part-exchanged three old motor vans that had originally cost £27 000 in total and
had a net book value of £12 000.
He paid the balance owing for the new motor vans with a cheque for £35 000.
It is Andy’s policy to provide a full year’s depreciation in the year of acquisition and none
in the year of disposal. Depreciation is provided at the rate of 33
1
3 % per annum using the
reducing-balance method.
3 (a) Prepare the motor vans at cost, provision for depreciation of motor vans, and the
disposal of motor vans accounts, as they would appear after the preparation of the
financial statements at 31 December 2013.
[15 marks]
Dr Motor vans at cost Cr
Details £ Details £
11. 11
Do not write
outside the
box
Turn over
M/Jun14/ACCN2
(11)
Dr Provision for depreciation of motor vans Cr
Details £ Details £
Dr Disposal of motor vans Cr
Details £ Details £
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12. 12 Do not write
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M/Jun14/ACCN2
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3 (b) Tick one box to show which of the concepts shown below is being applied in the
treatment of depreciation in the financial statement of Murraymovers.
[1 mark]
Concept
Accruals
Business entity
Realisation
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16
13. 13
M/Jun14/ACCN2
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(13)
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14. 14 Do not write
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M/Jun14/ACCN2
(14)
4 Total for this question: 17 marks
The Directors of Pendgard Ltd are concerned that their business is not performing as well
as others in their industry. In particular, they believe that the business is not as profitable
as its competitors. They have decided to carry out a performance appraisal using financial
ratios. They have obtained the industry average ratios which are based on financial
statements up to and including the year ended 31 December 2013. They have also
calculated the comparable ratios for Pendgard Ltd based on the financial statements for
the year ended 31 March 2014.
Ratio Pendgard Ltd Industry
average
Gross profit margin 20% 25%
Profit in relation to turnover 5% 7.5%
Return on capital employed 2.5% 4%
4 (a) Assess, using only the ratios given, whether the Directors are correct in their belief that
Pendgard Ltd is less profitable than its competitors.
[3 marks]
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15. 15
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M/Jun14/ACCN2
(15)
4 (b) Explain three limitations of using ratios to assess business performance.
[14 marks]
[includes 2 marks for quality of written communication]
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