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JUNE 2013

1. a)
ConEct
Income Statement for the year ended 31 January 2012
Income
Sales commissions received 115 500
Add sales commissions outstanding 14 100
129 00
Less Expenses
!ent 13 300
Add !ent o"ing 3 000 1 300
#nsurance $ 100
%ess insurance &re&aid '1 (00 ) 5300
)eliver* e+&enses 11 500
Salesmen,s "ages 4 $00
%oan interest 5 500
)e&reciation '0 000-12 000 . 4( 000 / 200) 900
'94 900)
Net 1ro2it 34 $00
1. 3)
ConEct
Classified Balance Sheet as at 31 January 2012
Fixed Assets
)eliver* van at cost 0 000
%ess accumulated de&reciation '12 000 4 900) '21 00)
3( 400
Current Assets
5an6 121 400
Sales commissions outstanding 14 100
#nsurance &re&aid 1 (00
13$ 300
Less Current Liabiities
!ent o"ing '3 000)
7or6ing 8a&ital 134 300
1$2 $00
Financed !y
8a&ital (( 000
Add Net 1ro2it 34 $00
122 $00
Lon" #erm iabiities
5-*ear 3an6 loan 50 000
1$2 $00
2. $a% 9:e ta3le 3elo" s:o"s sources o2 t:e )e3tors, 8ontrol Accounts.
Source of Information !oo& of 'ri"ina Entry
9otal re2und to de3tors Cash Book
9otal dis:onored c:e;ues 8as: 5oo6
9otal credit sales Sales Journal
9otal returns in"ards !eturns #n"ards Journal
!ecei&ts 2rom de3tors 8as: 5oo6
9otal discounts allo"ed 8as: 5oo6
9otal 3ad de3t <eneral Journal
2. $b%
%. Somerset
1urc:ases %edger 8ontrol Account 2or 2or t:e mont: o2 =cto3er
5alance 3>d 1 450 5alance 3>d 25 400
!eturns =ut"ards 1 200 1urc:ases 123 900
1a*ments to creditors 100 300 !e2und 1 1(0
)iscount received 2 500 8:e;ue returned 3 300
Set o22 20 !eceived 2rom creditor 2(4
5alance c>d 4$ 994
154 04 154 04
2( $c%
<eneral Journal
? ?
i E;ui&ment 2 100
1urc:ases 2 10
8orrection o2 error ":ere 3* E;ui&ment
"as de3ited to 1urc:ases Account
ii 5an6 Account 2$0
Sus&ense Account 2$0
1a*ment to creditors overstated 3* 2$0 in
5an6 Account
3( $a%
i.
current asset ?12 000 2
current lia3ilities + . 1
current assets as at June 2011 . ? 000
ii.
current asset ?0 000 4
current lia3ilities + 1
current lia3ilities as at June 2012 . ?15 000
$b%
i. Average stoc6 . =&ening Stoc6 4 8losing Stoc6 . (00 4 4 400
2 2 . ?500
ii. Stoc6 turn . cost o2 good sold ?122 (00
average stoc6 . ?500 . 21.9 times
iii. <ross &ro2it &ercentage . <ross 1ro2it 100 ?131 00
Sales @ 1 . ?250 000
. ?0.524 @ 100 . 52.40
'c)
5alance s:eet 2or !eisse Aolding as at 30 June 2012.
? ? ? ?
Bi+ed assets 125 000 8a&ital $1 00
Add Net 1ro2it 9 900
8urrent assets 0 000 %ess )ra"ings '23 900)
11$ 00
9otal lia3ilities $ 400
1(5 000 1(5 000
'd) return on ca&ital em&lo*ed . Net &ro2it
8a&ital em&lo*ed (total assets current liabilities) .
?9 900 100
?1$0 000 '$185 000 $15 000) @ 1
. 41.120
'e)
9:e rate o2 stoc6 turnover 2or t:is com&an* "as 22 times t:is means t:at stoc6
is used or sold out and re&laced 22 times a *ear.
Bor !eisse Aolding 41.120 o2 sales is le2t over a2ter &a*ing cost o2 goods sold
s:o"s :o" e22ectivel* assets are &er2orming ":ile ta6ing into consideration
long-term 2inancing.
) a
Statement s:o"ing 8ost o2 material consumed
? ? ?
#nventor* 3>2 '300 + 19) 5 $00
1urc:ases o2 ra" material
4 500 metres at 19 - (5 500
2 150 metres at 24 C 51 00 13$ 100
%essD- !eturns out"ards o2 ra" material
100 metres at ?24 &er metre
'2400)
AddD- 8arriage on ra" material 3 400 13( 100
143 (00
%ess #nventor* c>2 '340 + 24) '(10)
8ost o2 material consumed 13540
)b
Statement s:o"ing cost o2 direct material
)irect la3our'"ages)
8utters '4 500 +15 )
Stitc:ers '4 120 + 12)
1ressers'4 000 + 5 )
$ 500
49 440
20 000
13 940
)c
Eanu2acturing Account 2or t:e *ear ended 31 )ecem3er 2012
? ? ?
8ost o2 material consumed 135 40
8ost o2 direct material 13 940
)irect E+&enses ( 900
1rime 8ost 2(1 4(0
Factory overhead
Salar* o2 2actor* manager 3( 050
Bactor* &o"er ( 400
<eneral 2actor* e+&enses 1( 050
Annual de&reciation on &lant and mac:iner* 1 00
100
Add 7i& 3>2 2 010
Less 7i& c>2 '3 $90)
'1 $(0)
8ost o2 &roduction 345 (00
*a
<ross 1a*
Ear6 ?30 + 2$ ( 10
Jones ?30 + 40
?30 + 1.5 +
1200
2$0 14$0
*b
A 5 8 ) E
Em&lo*ees <ross 1a* 5>2
?
Social
Securit*
?
9a+a3le 1a*
?
#ncome 9a+
?
Net 1a*
?
Ear6 ( 10 40.50 $9.50 $.95 92.55
Jo:n 14$0 $3.50 139.50 139.5 125.(5
orkin!
Social Securit*
mar6 (10 + 50 . 40.50
Jo:n 14$0 + 50 . $3.50
#ncome 9a+
Ear6 $9.50 + 100 . $.95
Jo:n 139.50 + 100 .
139.5
+i Bixed Assets of Sautec Credit Union