2010 Yr10 POA Answer

PRINCIPLES OF ACCOUNTS
Prepared by: Hajah Marhani & Hajah Harita

Year
10/11
1

EXERCISE A: MULTIPLE CHOICE QUESTIONS

1. a
2. b
3. a
4. a
5. b
6. c
7. d
8. d
9. b
10. d

EXERCISE B: ERRORS DO NOT AFFECT TRIAL BALANCE

General Journal
No. Particulars Debit Credit

$ $
a) Vanida 90
Sales 90

b) Motor Van Repairs 370
Motor Van 370

c) Purchases 100
Sales 100

d) Janet 320
Jenny 320

e) Purchases 780
Ekhwan Co. 780

f) Office Equipment 355
Purchases 355

g) Insurance 560
Advertising 560

h) Drawings 500
Wages 500

Topic 1: Correction of Errors

Year
10/11
2

a) Sales A/c b) Motor Van Repairs A/c
$ $ $ $
Error 780 Motor van 370
Vanida 90

Vanida A/c Motor Van A/c
$ $ $ $
Error 780 Error 370 Motor Van
Sales 90 repairs 370

c) Sales A/c d) Janet A/c
$ $ $ $
Purchases 100 Jenny 320

Purchases A/c Jenny A/c
$ $ $ $
Sales 100 Error 320 Janet 320

e) Purchases A/c f) Office Equipment A/c
$ $ $ $
Ekhwan Co. 780 Purchases 355

Ekhwan Co. A/c Purchases A/c
$ $ $ $
Purchases 780 Error 355 Office
Equipment 355

g) Insurance A/c h) Drawings A/c
$ $ $ $
Advertising 560 Wages 500

Advertising A/c Wages A/c
$ $ $ $
Error 560 Insurance 560 Error 500 Drawings 500


Year
10/11
3

EXERCISE C: ERRORS DO AFFECT TRIAL BALANCE

General Journal

$ $
a) Suspense 100
Bahrin 100

b) Saidatul 50
Suspense 50

c) Edora 30
Suspense 30

d) Suspense 3 000
Purchases 3 000

a) Bahrin A/c b) Saidatul A/c
$ $ $ $
Error 50 Suspense 100 Error 900
Suspense 50

Suspense A/c Suspense A/c
$ $ $ $
Bahrin 100 Saidatul 50

c) Edora A/c d) Purchases A/c
$ $ $ $
Suspense 30 Suspense 3 000

Suspense A/c Suspense A/c
$ $ $ $
Edora 30 Purchases 3 000


Year
10/11
4

EXERCISE D:

General Journal
$ $
a) Suspense 900
Adi 900
(Being correction of $1 000 received posted to
Adis Account as $100)

b) Suspense 3 000
Discount Allowed 1 500
Discount Received 1 500
(Being correction of discount received wrongly
debited to the Discount Allowed Account)

c) Suspense 600
Returns Outwards 600
(Being returns outwards not posted now posted)

d) Suspense 90
Isham 90
(Being correction of credit purchase of $760
posted to Isham account as $670)

e) Petty Cash 80
Suspense 80
(Being correction of $80 reimbursement had not
posted to the petty Cash Account)

Dr Suspense Account Cr
$ $
Adi 900 Balance b/d 4 510
Discount Allowed 1 500 Petty Cash 80
Discount Received 1 500
Isham 90
4 590 4 590


Year
10/11
5
EXERCISE E:

a) General Journal
2009
$ $
Mar 31
i) Purchases 550
Suspense 550
(Being correction of error: Purchases undercast)

ii) Suspense 140
Returns outwards 70
Returns Inwards 70
(Being correction of error: Returns Outwards
wrongly recorded as returns inwards)

General Journal
iii) Ekhwan 455
Ikhwana 455
Suspense 910
(Being correction of error: Sales to Ekhwan credited
in error to Ikhwanas Account)

iv) Discount Allowed 80
Hafiz 80
(Being correction of error: Discount Allowed to Hafiz
omitted from the books)

v) Motor vehicle expenses 235
Motor vehicles 235
(Being correction of error: Motor vehicles Expenses
wrongly debited to Motor Vehicles Account)


Year
10/11
6
(b) Suspense Account Cr
2009 $ 2009 $
Mar 31 Difference in books 1 320 Mar 31 Purchases 550
Returns outwards 70 Ekhwan 455
Returns Inwards 70 Ikhwana 455

1 460 1 460

(c) Statement of corrected Net Profit for the year ended 31 March 2009
$ $
Net Profit before correction of errors 23 456
Add: Returns outwards omitted 70
Returns inwards cancelled 70 140
23 596
Less: Purchases undercast 550
Discount allowed omitted 80
Motor vehicle expenses 235 865
CORRECTED NET PROFIT 22 731

EXERCISE F

(a) Suspense Account Cr
2009 $ 2009 $
Dec 31 Difference in books 440 Dec 31 Debtors 90
General Expenses 250 Returns Outwards 350
Sales 1 000 Returns inwards 350
Discount Allowed 100
Bank 800
1 690 1 690


Year
10/11
7
Trial Balance as at 31 December 2009
Debit
$
Credit
$
Capital 25 000
Drawings 1 632
Debtors 5 768
Creditors 5 420
Stock 17 400
Bank 8 690
Purchases 68 200
Sales 98 300
Office Equipment 25 500
General Expenses 1 230
Discount Received 150
128 870 128 870

EXERCISE G

a) Corrected Trial Balance as at 31 December 2009
Debit
$
Credit
$
Capital 30 000
Drawings 2 350
Purchases 65 785
Sales 81 685
Stock as at 1 January 2009 12 345
Motor Vehicles 35 000
Provision for Depreciation of Motor Vehicles 7 000
General Expenses 680
Provision for doubtful debts 480
Debtors 5 970
Creditors 2 800
Bank (overdraft) 1 600
Suspense Account 1 435
123 565 123 565

Year
10/11
8

b) General Journal
2009

$ $
Dec 31
i) Purchases 1 090
Suspense 1 090

ii) Returns Inwards 36
Suspense 36

iii) Drawings 300
Purchases 300

iv) Suspense 18
General Expenses 18

v) Drawings 900
Cash 900

vi) Shah 327
Suspense 327

(c) Suspense Account Cr
2009 $ 2009 $
Dec 31 Difference in books 1 435 Dec 31 Purchases 1 090
General Expenses 18 Returns Inwards 36
Shah 327

1 453 1 453


Year
10/11
9

EXERCISE H

ITEM GROSS PROFIT NET PROFIT
Increase
$
Decrease
$
Increase
$
Decrease
$
1 Bad debts written off $80 No effect No effect 80
2 Returns outwards, $100 100 100
3 Electricity expense, $400 No effect No effect 400
4 Unsold stock on balance day, $50 50 50
5 Insurance paid in advance, $68 No effect No effect 68

EXERCISE I
a) Suspense A/C
2010 $ 2010 $
Jan 31 Sundry Expenses 120 Jan 31 Difference in Trial Balance 460
Debtors - Violet 90 Sales 200
Bank 480 Drawings 100
Purchases 70

760 760

b) Corrected Trial Balance as at 31 January 2010
Debit
$
Credit
$
Capital 25 000
Drawings 11 300
Equipment 12 600
Debtors 11 810
Creditors 5 340
Stock 1 January 2006 9 900
Cash at bank 4 120
Sales 120 700
Purchases 94 230
Sundry Expenses 7 080
151 040 151 040


Year
10/11
10

Practice 1:

Dr Debtors Control Account Cr
2009 $ 2009 $
May 31 Sales 3,050 May 31 Bank 1,160
Discount Allowed 75
Sales Returns 120
Balance c/d 1,695
3,050 3,050
2009
June 1 Balance b/d 1,695

Practice 2:

Dr Creditors Control Account Cr
2009 $ 2009 $
Jan 31 Bank 3,500 Jan 1 Balance b/d 3,500
Discount Received 80 31 Purchases 4,800
Balance c/d 4,520
8,300 8,300

Feb 1 Balance b/d 4,520

Topic 2: Control Accounts

Year
10/11
11

EXERCISE A
Dr Sales Ledger Control Account Cr
2009 $ 2009 $
July 1 Balance b/d 8,880 July 31 Bank 15,000
31 Credit Sales 14,240 Returns Inwards 350
Interest Charges 170 Discount allowed 150
Refund 210 Bad debts 300
Balance c/d 7,700
23,500 23,500
Aug 1 Balance b/d 7,700

EXERCISE B
Dr Creditors Control Account Cr
$ $
May 31 Returns Outwards 600 May 1 Balance b/d 11,400
Bank 16,200 31 Purchases 17,180
Discount Received 700 Carriage charges 500
Balance c/d 11,580

29,080 29,080
Jun 1 Balance b/d 11,580

EXERCISE C: MULTIPLE-CHOICE QUESTIONS

1) c
2) d
3) b
4) d
5) c
6) a
7) d
8) b


Year
10/11
12

EXERCISE D

a) Sales Ledger Control Account
Date Particular $ Date Particular $
2009 2009
Mar 1 Balance b/d 5,040 Mar 31 Sales Returns 725
31 Sales 67,390 Discount allowed 512
Dishonoured cheque 167 Bad debts 580
Bank 60,300
Contra 265
Balance c/d 10,215
72,597 72,597
Apr 1 Balance b/d 10,215

b) Purchases Ledger Control Account
Date Particular $ Date Particular $
2009 2009
Mar 31 Purchases Returns 410 Mar 1 Balance b/d 4,820
Bank 41,550
Contra 265
Balance c/d 8,900
51,435 51,435
Balance b/d

EXERCISE E

Sales Ledger Control Account
2009 $ 2009 $
July 1 Balance b/d 5,875 July 31 Bank 20,985
31 Sales 23,465 Discount allowed 450
Dishonoured cheque 1,200 Sales Returns 880
Interest 150 Bad debts 550
Balance c/d 125 Contra 760
Balance c/d 7,190
30,815 30,815
Aug 1 Balance b/d 7,190 Aug 1 Balance b/d 125


Year
10/11
13

Purchases Ledger Control Account
2009 $ 2009 $
July 31 Bank 14,580 July 1 Balance b/d 7,435
Purchases Returns 690 Carriage Inwards 400
Contra 760 Balance c/d 180
Balance c/d 8,365
24,695 24,695
Aug 1 Balance b/d 180 Aug 1 Balance b/d 8,365

EXERCISE F

2010 $ 2010 $
Jan 1 Balance b/d 11 500 Jan 31 Bank 26 500
31 Sales 28 700 Discount allowed 300
Dishonoured cheque 1 400 Returns Inwards 700
Balance c/d 400 Bad debts 450
Contra 710
Balance c/d 13 340
42 000 42 000
Feb 1 Balance b/d 13 340 Feb 1 Balance b/d 400

2010 $ 2010 $
Jan 31 Bank 16 500 Jan 1 Balance b/d 8 760
Discount Received 760 31 Purchases 20 000
Contra 710 Balance c/d 330
Balance c/d 11 120

29 090 29 090
Feb 1 Balance b/d 330 Feb 1 Balance b/d 11 120


Year
10/11
14
EXERCISE G
(a) Danial
$ 2007 $
Apr 30 Purchases Returns 940 Apr 1 Balance b/d 4 120
Bank 28 100 30 Purchases 29 900
Discount Received 760 Interest Charges 10
Contra 90
Balance c/d 4 140
34 030 34 030
May 1 Balance b/d 4 140

(b) Danial
$ 2007 $
Apr 1 Balance b/d 7 190 Apr 30 Sales Returns 1 070
30 Sales 46 300 Bank 38 900
Interest Charges 20 Discount Allowed 1 060
Contra 90
Balance c/d 12 390
53 510 53 510
May 1 Balance b/d 12 390

EXERCISE H
Debtors Control Account
2009 $ 2009 $
Jan 1 Balance b/d 14,000 Dec 31 Bank 87,600
Dec 31 Sales 88,120 Discount allowed 3,400
Returns Inwards 1,770
Bad debts 800
Balance c/d 8,550
102,120 102,120
2010
Jan 1 Balance b/d 8,550

Creditors Control Account
2009 $ 2009 $
Dec 31 Bank 27,300 Jan 1 Balance b/d 8,500
Discount Received 1,850 Dec 31 Purchases 29,100
Returns outwards 580
Balance c/d 7,870
37,600 37,600
2010
Jan 1 Balance b/d 7,870


Year
10/11
15
EXERCISE I
Sales Ledger
Syahidatul A/c
2009 $ 2009 $
Jan 1 Balance b/d 2,500 Jan 11 Sales Returns 108
5 Sales 720 15 Bank 2,375
Discount allowed 125
31 Contra 612
3,220 3,220

Purchases Ledger
Syahidatul A/c
2009 $ 2009 $
Jan 18 Purchases Returns 80 Jan 1 Balance b/d 1,480
31 Contra 612 7 Purchases 600
Bank 1,388
2,080 2,080

EXERCISE A

$ $
Balance b/d 9 520 Cash / Bank 89 690
Sales (Credit) 91 200 Discount Allowed 400
Balance c/d 10 630

100 720 100 720

$ $
Cash / Bank 57 830 Balance b/d 6 950
Discount Received 760 Purchases (Credit) 58 470
Return Outwards 950
Balance c/d 5 880
65 420 65 420

Topic 3: Incomplete Records

Year
10/11
16
EXERCISE B

Afifahs Statement of Affairs as at 30 June 2010
$ $
Office furniture 19 500 Capital 76 000
Motor Vehicles 42 000 Creditors 28 100
Stock 6 600
Debtors 25 000
Cash at Bank 11 000
104 100 104 100

Statement of Profit or Loss for the year ended 30 June 2010
$
Capital, 30 June 2010 76 000
+ Drawings 2 000
78 000
- Capital, 1 July 2009 53 000
Net Profit 25 000

EXERCISE C

Ameezahs Statement of Affairs as at 31 December 2010
$ $
Fixed Assets 22 400 Capital 28 600
- Depreciation (2 000) Creditors 3 120
Stock 6 400 Loan from TAIB 4 000
Debtors 6 800
Cash at Bank 2 120
35 720 35 720

Statement of Profit or Loss for the year ended 31 December 2010
$
Capital, 31 December 2010 28 600
+ Drawings 10 000
38 600
- Additional Capital (4 000)
- Capital, 1 January 2010 (20 000)
Net Profit 14 600


Year
10/11
17
EXERCISE D

Capital = Total Assets - Total Liabilities
(31 December 2009) = $171 000 - $9 500
= $161 500

(31 December 2010) = $165 700 - $10 000
= $155 700

$
+ Drawings 39 000
194 700
Net Profit 33 200

EXERCISE E

(1 January 2011) = $509 300 - $159 000
= $350 300

(31 December 2011) = $491 000 - $178 000
= $313 000

$
+ Drawings 18 000
331 000
Net Loss (25 300)


Year
10/11
18

EXERCISE F

Capital at 1 May 2009 : Total Assets Total Liabilities
: 56 400 1 400
: $55 000

Fixtures and Fittings : 9 900 900
: $9 000

Motor Vehicles : 4 000 800
: $3 200

Debtors : 5 800 600 (Bad Debts)
: $5 200

Hariris Statement of Affairs as at 30 April 2010
$ $
Premises 27 000 Capital 61 500
Fixtures and Fittings 9 000 Creditors 800
Motor Vehicles 3 200
Stock in trade 14 400
Debtors 5 200
Cash at Bank 3 500
62 300 62 300

Statement of Profit or Loss for the year ended 30 April 2010
$
Capital, 30 April 2010 61 500
+ Drawings 9 000
70 500
- Capital, 1 May 2009 (55 000)
Net Profit 10 500

EXERCISE G

Arthurs Statement of Affairs as at 30 September 2010
$ $
Premises 21 000 Capital 34 300
Equipment 3 900 Bank Overdraft 2 450
Motor Vehicles 5 200 Creditors 1 750
Stock in trade 6 400
Debtors 2 000

38 500 38 500


Year
10/11
19

Statement of Profit or Loss for the year ended 30 September 2010
$
Capital, 30 September 2010 34 300
+ Drawings 4 900
39 200
- Capital, 1 October 2009 (29 200)
Net Profit 7 000

EXERCISE H:

$ $
Balance b/d 19 700 Bank 79 200
Sales (Credit) 67 080 Returns Inwards 460
Bad Debts 730
Balance c/d 5 760
86 780 86 780

Total Sales = Credit sales + Cash Sales
= 67 080 + 31 500
= $98 580

$ $
Bank 68 900 Balance b/d 18 300
Balance c/d 11 400 Purchases (Credit) 62 000
80 300 80 300

Total Purchases = Credit Purchases + Cash Purchases
= 62 000 + 2 300
= $64 300


Year
10/11
20

Azamie Company
Trading, Profit and Loss Account for the year ended 31 March 2011
$ $ $ $
Opening Stock 14 900 Sales 98 580
Purchases 64 300 Less Returns Inwards 460 98 120
79 200
Less Closing stock (15 800)
Cost of goods sold 63 400
Gross Profit c/d 34 720
98 120 98 120

Discount allowed 630 Gross Profit b/d 34 720
Bad Debts 730
Salaries and wages 21 700
Office Expenses 720
Advertising 3 100
Depreciation of Off. Furniture 1 200
28 080
Net Profit 6 640
34 720 34 720

Balance Sheet of Azamie as at 31 March 2011
$ $ $ $
Fixed Assets Owner's Equity
Office Furniture 12 500 Capital 31.03.2010 33 930
Add: Net Profit 6 640
Current Assets 40 570
Closing stock 15 800 Less: Drawings (2 700)
Debtors 5 760 Capital 31.03.2011 37 870
Cash at Bank 17 310 38 870
Current Liabilities
Creditors 11 400
Expenses Owing 2 100 13 500

51 370 51 370


Year
10/11
21
EXERCISE H: MULTIPLE CHOICE QUESTIONS

1. b
2. a
3. d
4. c
5. b
6. a
7. b
8. d

EXAMPLE:

Subscription Account
2008 $ 2008 $
Jan 1 Balance b/d A 1 100 Jan 1 Balance b/d P 450
Dec 31 Income & Expenditure 42 190 Dec 31 Bank/Cash 42 600
Balance c/d P 720 Balance c/d A 960
44 010 44 010

Income and Expenditure Account for the year ended 31 Dec 2008
$ $
Revenue Expenditure

Revenue Receipts
Subscription

42 190

Balance Sheet as at 31 Dec 2008
$ $
CURRENT ASSET
Subscription in Arrears

960

CURRENT LIABILITIES
Subscription in Advance

720

Topic 2: Non-Profit Making Organisation

Year
10/11
22

EXERCISE A

Transaction CLUB A
$
CLUB B
$
CLUB C
$
CLUB D
$
Subscriptions received during the year

6 800 10 500 12 000 12 345 ?
Accrued Subscriptions on 1 January.

Nil 360 200 765
Subscriptions received in advance on
1 January
Nil 480 435 345
Accrued Subscriptions on 31 December.

500 600 225 ? 425
Subscriptions received in advance on
31 December.
280 240 ? 120 675
Subscriptions transferred to Income and
Expenditure Account.
7 020 ? 10 980 12 340 11 675

EXERCISE B
2008 $ 2008 $
Jan 1 Balance b/d A 1100 Jan 1 Balance b/d P 370
34 550 34 550

EXERCISE C
2008 $ 2008 $
20 460 20 460

EXERCISES: SUBSCRIPTION ACCOUNT

Year
10/11
23

EXERCISE D

2008 $ 2008 $
36 470 36 470

Income and Expenditure Account for the year ended 31 December 2008
$ $
Revenue Expenses

Revenue Receipts
Subscription

35 670

Balance Sheet as at 31 December 2008
$ $
Current Asset
Subscription in Arrears

750
Current Liabilities
Subscription in Advance

200

Example:

STEP 1: DETERMINE TOTAL SALES (Total Sales = Credit Sales + Cash Sales)

Refreshment Debtor Account
2008 $ 2008 $
Jan 1 Balance b/d 400 Dec 31 Bank 6 000
Dec 31 Credit Sales 6 350 Balance c/d 750
6 750 6 750

Total Sales = Credit Sales + Cash Sales
= $6 350 + $18 400
= $24 750

Year
10/11
24
STEP 2: DETERMINE TOTAL PURCHASES (Total Purchases = Credit Purchases + Cash
Purchases)

Refreshment Creditors Account
2008 $ 2008 $
Dec 31 Bank 4 800 Jan 1 Balance b/d 800
Balance c/d 960 Dec 31 Credit Purchases 4 960
5 760 5 760

STEP 3: PREPARE TRADING ACCOUNT

Brunei Tennis Club
Refreshment Trading Account for the year ended 31 December 2008
$ $
+ Purchases 18 960
+ Refreshment Wages 3 600
24 660
- Closing Stock (1 800)
Cost of Refreshment Sold 22 860
Refreshment Profit 1 890
24 750 24 750

STEP 4: TRANSFER REFRESHMENT PROFIT IN INCOME AND EXPENDITURE A/C

Income and Expenditure Account for the year ended 31 December 2008
$ $

Refreshment Profit

1 890

Total Purchases = Credit Purchases + Cash Purchases
= $4 960 + $14 000
= $18 960

Year
10/11
25

EXERCISE A

Receipts and Payments account
2008 $ 2008 $
Jan 1 Balance b/d 12 500 Dec 31 PAYMENTS
Dec 31 RECEIPTS Sundry expenses 1 200
Subscriptions 46 000 Rates and rent 14 200
Entrance fees 8 500 Salary 28 000
Locker fees 4 800 Sports Equipment 11 700
Fun fair 28 400 Newspapers 1 600
Tennis balls 2 400
Maintenance 3 600
Balance c/d 37 500
100 200 100 200
2009
Jan 1 Balance b/d 37 500

Danial Softball Club
Income and Expenditure account for the year ended 31 December 2008
EXPENDITURE $ INCOME: $
Sundry expenses 1 200 Subscriptions 46 000
Rates and rent 14 200 Entrance fees 8 500
Salary 28 000 Locker fees 4 800
Newspapers 1 600 59 300
Tennis balls 2 400
Maintenance 3 600
51 000
Surplus 8 300
59 300 59 300


Year
10/11
26

EXERCISE B
2007 $ 2007 $
Oct 1 Balance b/d A 270 Oct 1 Balance b/d P -
2008 2008
Sept 30 Income & Expenditure 4 910 Sept 30 Bank/Cash 4 900
Balance c/d P - Balance c/d A 280
5 180 5 180

Pantai Tungku Sports Club
Refreshment Trading account for the year ended 30 September 2008
$ $
Opening Stock 210 Sales 3 500
+ Purchases 2 100
2 310
- Closing Stock 320
1 990
3 500 3 500

Pantai Tungku Sports Club
Income and Expenditure account for the year ended 30 September 2008
EXPENDITURE: $ INCOME: $
Stage show expenses 2 200 Gross Profit 1 510
Wages 1 800 Subscription 4 910
Newspapers 500 Stage Show 2 800
Rent 2 600 Entrance Fees 1 000
Stationery 170 10 220
Cleaning Expenses 240
Depreciation of Sports Equipment 800
8 310
Surplus 1 910
10 220 10 220


Year
10/11
27

EXERCISE C

2007 $ 2007 $
July 1 Balance b/d A 105 July 1 Balance b/d P 230
2008 2008
June 30 Income & Expenditure 3 260 June 30 Bank/Cash 3 100
3 505 3 505

Refreshment Creditors Account
$ $
Bank 7 750 Balance b/d 290
Balance c/d 470 Credit Purchases 7 930
8 220 8 220

Prado Racer Club
Bar Trading account for the year ended 30 June 2008
$ $
+ Purchases 7 930
Barmans wages 2 310
12 380
- Closing Stock 2 570
9 810
Bar Profit 3 690
13 500 13 500


Year
10/11
28

Prado Racer Club
Income and Expenditure account for the year ended 30 June 2008
EXPENDITURE: $ INCOME: $
Secretarys honorarium 600 Bar Profit 3 690
General Expenses 1 100 Subscriptions 3 260
Rent 900 Entrance fees 230
Insurance 160 Interest 70
Depreciation of Sports Equipment 85 Donations 400
2 845 7 650
Surplus 4 805
7 650 7 650

EXERCISE D:
2008 $ 2008 $
Jan 1 Balance b/d A 320 Jan 1 Balance b/d P -
Dec 31 Income & Expenditure 12 460 Dec 31 Bank 12 900
13 020 13 020

Seri Lambak Community Club
Refreshment Trading account for the year ended 31 March 2008
$ $
+ Purchases 3 100
5 830
3 190
7 500 7 500


Year
10/11
29

Income and Expenditure account for the year ended 31 March 2008
$ $
Wages 11 350 Refreshment Profit 4 310
Rates 1 200 Entrance fees 1 200
Insurance 710 Competition fees 600
Sundry Expenses 390 Subscriptions 12 460
Postage 90
Electricity 2 900
Stationery 750
17 390 18 570
Surplus 1 180
18 570 18 570

Balance Sheet as at 31 March 2008
FIXED ASSETS $ ACCUMULATED FUND $
Clubhouse 57 000 Opening 66 710
Furniture 6 900 Add: Surplus 1 180
63 900 67 890
CURRENT ASSETS
Stock 2 640 CURRENT LIABILITIES
Cash at bank 1 710 Wages Owing 310
Insurance Prepaid 70 Subscription in advance 240 550
Subscription owing 120 4 540

68 440 68 440


Year
10/11
30

EXERCISE E:

2007 $ 2007 $
April 1 Balance b/d A 580 April 1 Balance b/d P 790
2008 2008
Mar 31 Income & Expenditure 32 940 Mar 31 Bank 32 200
33 520 33 520

Intan Kejora Social Club
Refreshment Trading account for the year ended 31 March 2008
$ $
+ Purchases 16 500
Refreshment wages 2 070
31 770
22 020
33 040 33 040

Income and Expenditure account for the year ended 31 March 2008
$ $
Dance expenses 2 300 Refreshment Profit 11 020
Wages 20 450 Subscriptions 32 940
General Expenses 1 870 Donations 300
Depreciation of Equipment 3 000 Dance Receipts 3 400
27 620 47 660
Surplus 20 040
47 660 47 660


Year
10/11
31

Clubhouse 90 000 Opening 86 540
Equipment 27 000 Add: Surplus 20 040
117 000 106 580
CURRENT ASSETS LONG-TERM LIABILITIES
Stock 9 750 Mortgage 48 000
Subscriptions in arrears 530 CURRENT LIABILITIES
Cash at bank 27 600 Wages Owing 300
37 880
154 880 154 880

EXERCISE F:
2008 $ 2008 $
Dec 31 Income & Expenditure 1 565 Dec 31 Bank 1 525
1 605 1 605

Equipment Account
2008 $ 2008 $
Jan 1 Balance b/d 610 Dec 31 Depreciation 200
Dec 31 Bank 560 Balance c/d 970
1 170 1 170

Creditors Account
2008 $ 2008 $
Dec 31 Bank 490 Jan 1 Balance b/d 95
Balance c/d 120 Dec 31 Purchases 515
610 610


Year
10/11
32
Sunshine Tennis Club
Refreshment Trading account for the year ended 31 December 2008
$ $
Opening Stock 65 Sales 975
+ Purchases 515
580
- Closing Stock 70
510
Refreshment Profit 465
975 975

$ $
Rent 1 090 Refreshment Profit 465
Miscellaneous expenses 345 Subscriptions 1 565
Staff Salary 320 Entrance fees 250
Depreciation of Equipment 200
1 955 2 280
Surplus 325
2 280 2 280

Equipment 970 Opening 1 215
Add: Surplus 325
CURRENT ASSETS Add: Donations 8 000
Stock 70 9 540
Subscriptions in arrears 55
Cash at bank 8 565 CURRENT LIABILITIES
Creditors 120

9 660 9 660


Year
10/11
33

EXERCISE G

Refreshment Creditors A/c
$ $
Bank 375 Bal b/d 120
Bal c/d Nil Purchases 255
375 375

Subscriptions A/c
$ $
Bal b/d Nil Bal b/d 20
I & E 1,600 Bank 1,540
Bal c/d Nil Bal c/d 40
1,600 1,600

a)
Zombies Softball Club
Refreshment Trading account for the year ended 31 December 2010
$ $
Opening Stock 90 Sales of refreshment 745
+ Purchases 255
Wages for preparation 200
545
- Closing Stock (80)
465
Refreshment Profit 280
745 745

b)
EXPENDITURE $ INCOME $
Rent 900 Subscriptions 1 600
Wages for ground upkeep 400 Refreshment Profits 280
Sundry Expenses 245 Collection from matches 485
Depreciation on Equipment 196 2 365
1 741
Surplus 624
2 365 2 365


Year
10/11
34

c)
Equipment 980 Opening 840
(-) Prov. For Depre (196) 784 Add: Surplus 624
Closing 1 464
CURRENT ASSETS
Stock of Refreshment 80
Cash at Bank 520
Cash In Hand 40
Subscription In Arrears 40 680

1 464 1 464

EXERCISE H: MULTIPLE-CHOICE QUESTIONS

1. b
2. d
3. c
4. a
5. b
6. a
7. d
8. c
9. c
10. b


Year
10/11
35

EXERCISE A

a) 140 000 6% $1 Preference Shares fully paid.

Preference share capital = 140 000 shares x $1
= $140 000

Dividend payable = $140 000 x 6%
= $8 400

b) 80 000 8% $2 Preference Shares fully paid.

Preference share capital = 80 000 shares x $2
= $160 000

= $12 800

c) 12% on 100 000 $0.50 Ordinary Shares fully paid.

Ordinary share capital = 100 000 shares x $0.50
= $50 000

= $6 000

d) 8% on 300 000 $2 Ordinary Shares fully paid.

Ordinary share capital = 300 000 shares x $2
= $600 000

= $48 000

CALCULATE THE DIVIDENDS PAID ON SHARES
Topic 5: Limited Companies

Year
10/11
36

EXERCISE B

i) Preference Share dividend payable.

Preference share capital = 300 000 shares x $0.80
= $240 000

= $16 800

ii) Ordinary Share dividend payable

= $600 000

= $90 000

iii) Debenture interest payable.

Debenture = 100 000 x $2.00
= $200 000

Interest payable = $200 000 x 8%
= $16 000

EXERCISE C

a) The interim and final dividend paid to Preference shareholders.

Preference share capital = 100 000 shares x $2.00
= $200 000

Interim Dividend = $200 000 x 3%
= $6 000

Final Dividend = $200 000 x 3%
= $6 000

b) The interim and final dividend paid to Ordinary Shareholders.

= $300 000

Interim Dividend = $300 000 x 5%
= $15 000

Final Dividend = $300 000 x 10%
= $30 000


Year
10/11
37

EXERCISE D

Profit and Loss Appropriation Account for the year ended 31 December 2009
$ $
Transfer to General Reserves 40 000 Net Profit b/d 140 000
Dividends: Unappropriated Profit b/f -
Preference Shares 15 000
Ordinary Shares 60 000

Unappropriated Profit c/d 25 000
140 000 140 000

EXERCISE E

$ $
Dividends: Unappropriated Profit b/f 12 000

32 000 32 000


Year
10/11
38

Naadirah Company Limited
$ $
AUTHORISED SHARE CAPITAL
80 000 Preference Shares 8% $1 80 000
50 000 $2.00 Ordinary Shares 100 000
180 000
ISSUED SHARE CAPITAL
50 000 8% $1 Preference Shares 50 000
30 000 $2 Ordinary Shares 60 000
110 000
RESERVES
General Reserves 28 000
Unappropriated Profit 9 000 37 000
TOTAL SHAREHOLDERS FUND 147 000

CURRENT LIABILITIES
Dividends: Preference Shares 4 000
Dividends: Ordinary Shares 9 000 13 000

160 000

EXERCISE F

$ $

40 300 40 300


Year
10/11
39

Waie Limited
$ $
80 000 6% 80 Preference Shares 64 000
150 000 $1.20 Ordinary Shares 180 000
244 000
50 000 6% 80 Preference Shares 40 000
100 000 $1.20 Ordinary Shares 120 000
160 000
RESERVES

EXERCISE G

Profit and Loss Appropriation Account for the year ended 31 March 2009
$ $
Dividends: Unappropriated Profit b/f -

28 570 28 570


Year
10/11
40
Ramadhan Enterprise
$ $ $ $
FIXED ASSETS AUTHORISED SHARE CAPITAL
Premises 174550
50000 8% $1.50 Preference Shares
75000
Machinery 37000 100000 $2 Ordinary Shares 200000
(-) Prov. for depreciation (7000) 30000 275000
Fixtures 7500 ISSUED SHARE CAPITAL
(-) Prov. for depreciation (500) 7000
30000 8% $1.50 Preference Shares
45000
211550 80000 $2 Ordinary Shares 160000 205000
CURRENT ASSETS
Debtors 8000 RESERVES
Bank 4600 General Reserves 5000
Cash 320 Unappropriated Profit 3970 8970
Closing Stock 15000 27920
TOTAL SHAREHOLDERS FUND
213970

CURRENT LIABILITIES
Dividends: Preference Shares 3600
Dividends: Ordinary Shares 16000
Creditors 5900 25500
239470 239470

EXERCISE H

Profit and Loss Appropriation Account for the year ended 31 March 2009
$ $
Transfer to General Reserves 10 000 Net Profit b/d (212500-40000) 172 500

177 700 177 700


Year
10/11
41

EXERCISE I

$
Preference Shares
Interim Dividend 12000
Final Dividend 12000 24 000
Ordinary Shares
254 500 254 500

EXERCISE J


Transfer to General Reserves 50 000 Net Profit b/d (128000 -18000) 110 000
Preference Shares
Ordinary Shares
156 000 156 000


Year
10/11
42
Hadyan Ltd
Extracted Balance Sheet as at 31 December 2009

800 000 Ordinary Shares of 50p each 400 000
300 000 10% Preference Shares of 1 300 000
700 000
600 000 Ordinary Shares of 50p each 300 000
250 000 10% Preference Shares of 1 250 000
550 000
RESERVES


Year
10/11
43

Example 3:

Capital Account
2008 Vince Linda
$ $
Jan 1 Balance b/d 30,000 20,000

$ $ $ $
Share of profits Net profit b/d 7,500
Vince 4,500
Linda 3,000
7,500 7,500

Current Account
Vince Linda Vince Linda
$ $ $ $
Drawings 3,000 2,000 Share of profits 4,500 3,000
Balance c/d 1,500 1,000
4,500 3,000 4,500 3,000

Exercise A

Ratio Mike Steve
Equal share $18,000 $18,000
Mike 5 : Steve 4 $20,000 $16,000
Mike 2/5, Steve 3/5 $14,400 $21,600
Mike 60%, Steve 40% $21,600 $14,400
Mike , Steve $27,000 $9,000

Exercise B

$ $ $ $
Share of profits Net profit b/d 30,000
Kaer 18,000
Nurul 12,000
30,000 30,000

Topic 6: Partnership Accounts

Year
10/11
44
Current Account
Kaer Nurul Kaer Nurul
$ $ $ $
Drawings 3,000 2,000 Share of Profits 18,000 12,000
Balance c/d 15,000 10,000

18,000 12,000 18,000 12,000
Balance b/d 15,000 10,000

Exercise C
$ $ $ $
Share of profits: Net Profit 12,000
Nora 6,000
Awie 4,000
Siti 2,000
12,000 12,000

Current Account
Nora Awie Siti Nora Awie Siti
$ $ $ $ $ $
Balance b/d - - 1,500 Balance b/d 2,000 1,000 -
Drawings 1,500 1,000 1,000 Share of profits 6,000 4,000 2,000
Balance c/d 6,500 4,000 - Balance c/d - - 500
8,000 5,000 2,500 8,000 5,000 2,500
Balance b/d - - 500 Balance b/d 6,500 4,000 -

Exercise D
$ $ $ $
Interest on Capital Net Profit 29,400
Misha 2,500
Anuar 2,000 Interest on Drawings
Zamani 1,500 6,000 Misha 640
Anuar 400
Salary Zamani 400 1,440
Anuar 7,000
Zamani 5,000 12,000

Share of profits
Misha 5,350
Anuar 4,280
Zamani 3,210 12,840

30,840 30,840


Year
10/11
45
Current Account
Misha Anuar Zamani Misha Anuar Zamani
$ $ $ $ $ $
Drawings 8,000 5,000 5,000 Interest on Capital 2,500 2,000 1,500
Interest on Drawings 640 400 400 Salary - 7,000 5,000
Balance c/d - 7,880 4,310 Share of Profit 5,350 4,280 3,210
Balance c/d 790 -
8,640 13,280 9,710 8,640 13,280 9,710
Balance b/d 790 - - Balance b/d - 7,880 4,310

Example: Interest on Loan

Current Account
Ria Riza Ria Riza
$ $ $ $

Interest on Loan 750 -

Exercise E

Profit and Loss Appropriation Account for the year ended 30 September 2004
$ $ $ $
Amin 400
Ang 800 1,200 Interest on Drawings
Ang 105
Salary: Amin 8,000

Share of Profit
Amin 9,890
Ang 19,780 29,670
38,870 38,870

Current Account
Amin Ang Amin Ang
$ $ $ $
Balance b/d 1,200 - Balance b/d - 2,345
Drawings - 2,100 Interest on Capital 400 800
Interest on Drawings - 105 Salary (unpaid) 3, 500 -
Balance c/d 12,590 20,720 Share of Profit 9,890 19,780

13,790 22,925 13,790 22,925
Balance b/d 12,590 20,720


Year
10/11
46

Exercise F
a)
Comic Partners
Trading, Profit and Loss Account for the year ended 31 December 2010
$ $ $ $
Opening Stock 8,000 Sales 59,600
Purchases (42200-300) 41,900
49,900
Less Closing stock (10,000)
Cost of Sales 39,900
Gross Profit c/d 19,700
59,600 59,600

Discount allowed 2100 Gross Profit b/d 19,700
Rent Expenses 9,800 Discount Received 3,500
General Expenses 3,450 23,200
Depreciation of Fixtures
And Fittings 1,730
Bank Charges 20
17,100
NET PROFIT 6,100
23,200 23,200

Balance Sheet as at 30 September 2004
FIXED ASSET $ $ $ $
Premises 55,000 CAPITAL
Furniture 15,000 70,000 Amin 20,000
Ang 40,000 60,000
CURRENT ASSETS
Stock 28,800 CURRENT ACCOUNT
Debtors 4,855 33,655 Amin 12,590
Ang 20,720 33,310

CURRENT LIABILITIES
Bank overdraft 3,545
Creditors 6,800
10,345

103,655 103,655

Year
10/11
47

$ $ $ $
Salary: Edward 1,200 Net Profit 6,100

Share of Profits Interest on Drawings
Giselle (
2
5
x 5,185)
2,074 Giselle (5% x 2400) 120
Edward (
3
5
x 5,185)
3,111 5,185 Edward (5% x 3300) 165 285

6,385 6,385

Current Account
Giselle Edward Giselle Edward
$ $ $ $
Balance b/d 50 Balance b/d 100
Drawings 2,400 3,300 Salary (unpaid) 1,200
Interest on Drawings 120 165 Share of Profits 2,074 3,111
Balance c/d 946 Balance c/d 496
2,570 4,411 2,570 4,411

b)

**Typing Error
Cash = $2,300

Comic Partners
FIXED ASSET $ $ $ $
Fixtures and Fittings 17,300 CAPITAL
(-) Prov. For Depre (1,730) 15,570 Giselle 10,000
Edward 15,000 25,000
CURRENT ASSETS
Stock 10,000 CURRENT ACCOUNT
Debtors 1,400 Giselle (496)
Cash** 2,300 Edward 946 450
Prepaid Expenses 200 13,900
CURRENT LIABILITIES
Creditors 3,000 4,020

29,470 29,470


Year
10/11
48

Exercise G
a)
Chantek and Chinta
Trading, Profit and Loss Account for the year ended 30 September 2010
$ $ $ $
Purchases (119600+1620) 121,220
131,520
227,300 227,300

Wages and Salaries 37,910 Gross Profit b/d 105,680
Rent, Rates and insurance 16,540
General Expenses 21,350
Depre of Fixtures & Fittings 4,300
Prov. For Doubtful Debts 555 80,655
Net Profit 25,025
105,680 105,680

Profit and Loss Appropriation Account for the year ended 30 September 2010
$ $ $ $
Share of Profit Net Profit 25,025
Chantek (
3
5
x 25025)
15,015
Chinta (
2
5
x 25025)
10,010
25,025
25,025 25,025

Current Account
Chantek Chinta Chantek Chinta
$ $ $ $
Drawings 17,130 16,240 Balance b/d 14,300 12,600
29,315 22,610 29,315 22,610
Balance b/d 12,185 6,370


Year
10/11
49

Exercise H
a)
WE Partners
$ $ $ $
Ekhwan 2,000
Wazeef 3,000 5,000 Interest on Drawings
Ekhwan 90
Salary: Wazeef 2,000 Wazeef 100 190

Share of Profit
Ekhwan (
2
5
x 7390)
2,956
Wazeef (
3
5
x 7390)
4,434 7,390
14,390 14,390

WORKINGS: INTEREST ON DRAWINGS
Ekhwan Wazeef
01.04.2010 = $2000 x
9
12
x 5% = 75
30.09.2010 = $1200 x
3
12
x 5% = 15
Total = 90

01.04.2010 = $2000 x
9
12
x 5% = 75
30.09.2010 = $2000 x
3
12
x 5% = 25
Total = 100

b) Chantek and Chinta
Balance Sheet as at 30 September 2010
FIXED ASSET $ $ $ $
Land & Buildings 52,100 CAPITAL
Fixtures and Fittings 21,500 Chantek 33,000
(-) Prov. For Depreciation
(17,200) 4,300 Chinta 22,000 55,000
56,400
CURRENT ACCOUNT
CURRENT ASSETS Chantek 12,185
Stock 9,900 Chinta 6,370 18,555
Debtors 18,500
(-) Prov for Doubtful Debt (555)
Expenses Prepaid 1,120 CURRENT LIABILITIES
Cash at Bank 2,480 31,445 Creditors (9140+1620) 10,760
Expenses Owing 3,530 14,290

87,845 87,845

Year
10/11
50
Current Account
Ekhwan Wazeef Ekhwan Wazeef
$ $ $ $
Balance b/d 2,250 Balance b/d 7,500
Drawings 3,200 4,000 Interest on Capital 2,000 3,000
Interest on Drawings 90 100 Salary 2,000
12,456 9,434 12,456 9,434
Balance b/d 9,166 3,084

b) WE Partners
FIXED ASSET $ $ $ $
Machinery 48,000 CAPITAL
(-) Prov. For Depreciation (18,000) 30,000 Ekhwan 40,000
Premises 80,000 Wazeef 60,000 100,000
110,000
CURRENT ACCOUNT
CURRENT ASSETS Ekhwan 9,166
Stock 9,700 Wazeef 3,084 12,250
Debtors 17,450
Prepaid Insurance 600 27,750 CURRENT LIABILITIES
Accrued Salaries 2,000
Creditors 8,500 15,500

LONG-TERM LIABILITIES

Loan from BIBD 10,000

137,750 137,750

Year
10/11
51
Exercise I
a) HB Partners
Trading, Profit and Loss Account for the year ended 31 December 2010
$ $ $ $
Purchases 113,000 Less Returns Inwards (2,100) 175,400
Less: Returns Outwards (1,400)
111,600
Add: Carriage on Purchases 1,350 112,950
122,750
175,400 175,400

Carriage on Sales 900 Gross Profit b/d 60,850
Discount Allowed 700 Discount Received 830
Electricity 2,545 Commission Received 4,800 66,480
Insurance 1,800
Rent 10,000
Bad Debts (2450+705) 3,155
Prov. For Doubtful Debts 200
Depreciation of M. Vehicles 2,500
Depreciation of Furniture & Fit. 600 22,400
Net Profit 44,080
66,480 66,480

$ $ $ $
Hanani 2,000
Bazeelah 2,500 4,500

Salary: Bazeelah 6,000

Share of Profit
Hanani (
1
2
x 33,580)
16,790
Bazeelah (
1
2
x 33,580)
16,790 33,580
44,080 44,080


Year
10/11
52

Current Account
Hanani Bazeelah Hanani Bazeelah
$ $ $ $
Drawings 6,000 8,000 Interest on Capital 2,000 2,500
Balance c/d 13,590 16,790 Salary 6,000
Share of Profit 16,790 16,790

19,590 25,290 19,590 25,290
Balance b/d 13,590 16,790

b)

**Typing Error
Petty Cash = $40

HB Partners
FIXED ASSET $ $ CAPITAL $ $
Freehold Land & Buiding 110,000 Hanani 40,000
Motor Vehicles 25,000 Bazeelah 50,000 90,000
(-) Prov. For Depreciation (9,500) 15,500
Furniture and Fittings 15,000 CURRENT ACCOUNT
(-) Prov. For Depreciation (5,600) 9,400 Hanani 13,590
134,900 Bazeelah 16,790 30,380
CURRENT ASSETS
Stock 8,200 CURRENT LIABILITIES
Debtors (20,705 705) 20,000 Bank overdraft 210
(-) Prov. For Doubtful Debts (600) Creditors 11,300
Petty Cash** 40 27,640 Prepaid Revenue 500
Expenses Owing 150 12,160

LONG TERM LIABILITIES

Loan from Baiduri Finance 30,000

162,540 162,540

Year
10/11
53

Exercise A

Premium Account
2008 $ 2008 $
April 1 Capital Account: April 1 Bank 5,000
Bony 2,500
Elly 2,500
5,000 5,000

Goodwill Account
2008 $ 2008 $
April 1 Capital Account:
Bony 5,000
Elly 5,000

Bank
2008 $ 2008 $
Premium - Aspirit 5,000 Balance b/d 8,000
Capital - Aspirit 20,000 Balance c/d 17,000
25,000 25,000
Balance b/d 17,000

Capital Account
2008 Bony Elly Aspirit 2008 Bony Elly Aspirit
April1 Balance c/d 57,500 37,500 20,000 April 1 Balance b/d 50,000 30,000 -
Premium 2,500 2,500 -
Goodwill 5,000 5,000 -
Bank - - 20,000
57,500 37,500 20,000 57,500 37,500 20,000
Balance b/d 57,500 37,500 20,000

Topic 7: Admission Of Partners

Year
10/11
54

Balance Sheet as at 1 April 2008
$ $ $ $
INTANGIBLE ASSETS CAPITAL
Goodwilll 10,000 Bony 57,500
Elly 37,500
FIXED ASSETS Aspirit 20,000 115,000
Premises 30,000
Machinery 35,000
CURRENT LIABILITIES

Motor Van 13,000 Creditors 22,000
Furniture 12,000 90,000

CURRENT ASSETS
Stock 17,000
Debtors 3,000
Bank 17,000 37,000
137,000 137,000

Exercise B

Premium Account Tweety
2008 $ 2008 $
July 31 Capital Account: July 31 Cash 4,200
Tom 2,940
Jerry 1,260
4,200 4,200

Goodwill Account
2008 $ 2008 $
July 31 Capital Account:
Tom 4,900
Jerry 2,100


Year
10/11
55

Revaluation Account
2008 $ 2008 $
July 31 Debtors 800 July 31 Premises 5,000
Stock 3,500
Capital account:
Tom 490
Jerry 210 700
5,000 5,000

Capital Account
2008 Tom Jerry Tweety 2008 Tom Jerry Tweety
July 31 Current a/c 18,330 - - July 31 Balance b/d 35,000 15,000 -
Balance c/d 25,000 25,000 25,000 Premium 2,940 1,260 -
Goodwill 4,900 2,100 -
Revaluation 490 210 -
Bank - - 25,000
Bank - 6,430 -
43,300 25,000 25,000 43,300 25,000 25,000
Balance b/d 25,000 25,000 25,000

Current Account
2008 Tom Jerry Tweety 2008 Tom Jerry Tweety
July 31 Balance c/d 19,830 2,500 - July 31 Balance b/d 1,500 2,500 -
Capital Account 18,330
19,830 2,500 - 19,830 2,500 -
Aug 1 Balance b/d 19,830 2,500 -

Year
10/11
56

Balance Sheet as at 31 July 2008
$ $ $ $
Goodwilll 7,000 Tom 25,000
Jerry 25,000
FIXED ASSETS Tweety 25,000 75,000
Premises 30,000
Motor Vehicles 13,000 CURRENTA/C:
Furniture 6,000 49,000 Tom 19,830
Jerry 2,500 22,330
CURRENT ASSETS
Stock 21,000 CURRENT LIABILITIES
Debtors 12,700 Creditors 16,700
Cash 4,200
Bank 20,130 58,030
114,030 114,030

Exercise C

Premium Account Uzma
2008 $ 2008 $
Oct 1 Capital Account: Oct 1 Cash 5,000
Adly 2,500
Eddy 2,500
5,000 5,000

Goodwill Account
2008 $ 2008 $
Oct 1 Capital Account:
Adly 5,000
Eddy 5,000


Year
10/11
57
Revaluation Account
2008 $ 2008 $
Oct 1 Machinery 7,000 Oct 1 Preminses 20,000
Motor Van 2,000
Provision for Doubtful Debts 500
Capital account:
Adly 5,250
Eddy 5,250 10,500
20,000 20,000

Capital Account
2008 Adly Eddy Uzma 2008 Adly Eddy Uzma
Oct 1 Balance c/d 62,750 42,750 75,000 Oct 1 Balance b/d 50,000 30,000 -
Premium 2,500 2,500 -
Goodwill 5,000 5,000 -
Revaluation 5,250 5,250
Bank - - 75,000
62,750 42,750 75,000 62,750 42,750 75,000
Balance b/d 62,750 42,750 75,000


Year
10/11
58

Balance Sheet as at 1 October 2008
$ $ $ $ $
Goodwilll 10,000 Adly 62,750
Eddy 42,750
FIXED ASSETS Uzma 75,000 180,500
Premises 50,000
Machinery 28,000
Motor Van 10,000 CURRENT LIABILITIES
Furniture 13,000 101,000 Creditors 22,000

CURRENT ASSETS
Stock 17,000
Debtors 3,000
(-) Provision for D.Debts 500 2,500
Cash 5,000
Bank 67,000 91,500
202,500 202,500


Year
10/11
59

PRACTICE: AMALGAMATION OF BUSINESSES

Balance Sheet as at 1 January 2010
$ $ $ $
Goodwilll 4,000 Peter 40,800
Jane 28,480 69,280
FIXED ASSETS
Premises 22,000 CURRENT LIABILITIES
Furniture 17,000 39,000 Creditors 9,000

CURRENT ASSETS
Stock 11,600
Debtors 14,400
(-) Prov. For Doubt. Debt (720)
Bank 10,000 35,280
78,280 78,280

Multiple-choice Questions
1) B
2) D
3) A
4) C
5) B

Topic 8: Amalgamation of businesses

Year
10/11
60
EXERCISE A
** typing error in the book

Bazeelah
Balance Sheet as at 30 June 2009
FIXED ASSET $ $ $ $
Premises 170,000 Capital 153,300
Machinery 15,000
(99000+10000-3000

Furniture 8,000 193,000
-200+47500

CURRENT ASSETS CURRENT LIABILITIES
Stock 4,200 Accrued Expenses 42,000
Debtors 4,800 Creditors** 6,500 48,500
(-) Prov. For Doubtful Debts (200) 8,800

201,800 201,800
Uzma
FIXED ASSET $ $ $ $
Premises 100,000 Capital 85,500
Machinery 23,000
(**52000**+34000-500)

Furniture 10,500 133,500
CURRENT LIABILITIES
CURRENT ASSETS Creditors 64,100
Stock 3,000 Bank Overdraft 8,900 73,000
Debtors 19,000
(-) Prov. For Doubtful Debts (500)
Bank 3,500 25,000

158,500 158,500
Bazeelah and Uzma
FIXED ASSET $ $ CAPITAL: $ $
Premises 270,000 Bazeelah 153,300
Machinery 38,000 Uzma 85,500 238,800
Furniture 18,500 326,500

Stock 7,200 Creditors 70,600
Debtors 23,800 Bank Overdraft 8,900
(-) Prov. For Doubtful Debts (700) Accrued Expenses 42,000 121,500
Bank 3,500
33,800
360,300 360,300

Year
10/11
61
EXERCISE B
CAPITAL:
Wazeef: 99,000-11000+15000-210 = $102,790
Wazeen: 88,800-6000+8000-206 = $90,594

EXERCISE C
** typing error in the book
Debtors $18,700
Capital Akmal $57,660

CAPITAL:
Nor Khayra: $100,000+$35,000-$6,400-$940+$800 = $128,460
Akmal: $57,660+$61,500-$16,420-$935-$2,410 = $99,395
Wazeef and Wazeen
Balance Sheet as at 30 April 2009
Machinery 107,000 Wazeef 102,790
Fixtures 47,500 154,500 Wazeen 90,594 193,384

Stock 49,000 Creditors 30,500
Debtors 20,800
(-) Prov. For Doubtful Debts (416) 69,384

223,884 223,884
Nor Khayra and Akmal
Balance Sheet as at 31 July 2009
Plant & Machinery 114,100 Nor Khayra 128,460
Motor Vehicles 52,300 Akmal 99,395 227,855
(-) Prov. For Depreciation (22,820)
Furniture 15,600 159,180 CURRENT LIABILITIES
Creditors 38,030
CURRENT ASSETS Accrued Expenses 780 38,810
Stock 53,000
Debtors 37,500
(-) Prov. For Doubtful Debts (1,875)
Prepaid Expenses 1,000
Cash at Bank 17,340
Cash in Hand 520 107,485

266,665 266,665

Year
10/11
62

WORKED EXAMPLES
A) Workings:
1. Gross profit $60,000 x 30% = $18,000
2. COGS = $60,000 - $18,000 = $42,000 (70% of GP)

B) Workings:
1. Gross profit: $60,000 x 25/ 100+25= $60,000 x 25/125 = $12,000
2. COGS= $60,000 - $12,000 = $48,000
Or
100/125 x $60,000 = $48,000

MULTIPLE CHOICE
1) A
2) D
3) D
4) A
5) B

Exercise A
Trading account for the year ended 31 December 2008
$ $
Stock 1,600 Sales 24,000
Add: Purchases 20,800
22,400
Less: Closing stock 2,400
20,000
Gross Profit 4,000
24,000 24,000

Topic 9: Interpretation and Analysis of Final Accounts

Year
10/11
63
Answer:
a) Turn over = Cost of goods sold + Gross Profit
= $20,000 + 20% x $20,000
= $20,000 + $4,000
= $24,000

b) Gross Profit = $24,000 - $ $20,000
= $4,000

c) Average Stock = $1,600 + $2,400
2
= $2,000

d) Rate of stockturn = Cost of goods sold
Average Stock
= $ 20,000
$2,000
= 10 times

e) Margin = Gross Profit x 100
Sales
= $4,000 x 100
$24,000
= 16.67 %

f) Markup = Gross Profit x 100
Cost of goods Sold
= $4,000 x 100
$20,000
= 20 %


Year
10/11
64
Exercise B
Workings:
Trading and Profit and Loss account
$ $
Stock 45,000 Sales 375,000
325,000
300,000
Gross Profit 75,000
375,000 375,000
Expenses 30,000 Gross Profit b/d 75,000
Net Profit 45,000

Answer:
a) Margin = Gross Profit x 100
Sales
= $75,000 x 100
$375,000
= 20 %

b) Markup = Gross Profit x 100
Cost of goods Sold
= $ 75,000 x 100
$300,000
= 25 %

c) Rate of stockturn = Cost of goods sold
Average Stock
= $ 300,000
$35,000
= 8.57 times


Year
10/11
65
d) ROCE = Net Profit x 100%
Capital Employed
= $45,000 x 100%
$180,000
= 25%
Exercise C.
Workings:
a) Margin = Gross Profit x 100
Sales
= Gross Profit x 100
$120,000
= 25 %
Therefore; GP = 25% x $120,000
= $30,000

b) Expenses/ Sales = 10%
Therefore; Expenses = $120,000 x 10%
= $12,000

c) Quick Assets = $35,000
Therefore; = Current Assets Closing Stock = $35,000
= Current Assets - $20,000 = $35,000
Current Assets = $55,000

d) Working Capital = $30,000
Therefore = Current Assets Current Liabilities
= $55,000 Current Liabilities = $30,000
Current Liabilities = $25,000


Year
10/11
66
Answers:
Trading and Profit and Loss account for the year ended 31 December 2008
$ $
Stock 15,000 Sales 120,000
110,000
Cost of goods sold 90,000
Gross Profit 30,000
120,000 120,000
Expenses 12,000 Gross Profit b/d 30,000
Net Profit 18,000
30,000 30,000

$ $
Fixed Assets 142,000 Capital 127,000
(+) Net Profit 18,000
145,000
Current Assets 55,000 Long Term Liabilities Loan 27,000

Current Liabilities 25,000

197,000 197,000
a) ROCE = Net Profit x 100%
Capital Employed
= $18,000 x 100%
$172,000
= 10.47%

b) Current ratio = Current Assets
Current Liabilities
= $ 55,000
$25,000
= 2.2 : 1

2010 Yr10 POA Answer

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2010 Yr10 POA Answer

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PRINCIPLES OF ACCOUNTS

Prepared by: Hajah Marhani & Hajah Harita

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