Beruflich Dokumente
Kultur Dokumente
JANUARY 1994
SECTION I
5.
(a)
(i)
The worksheet of Columbus Company was started but not finished. You are required
to complete it on December 31, 1989 using the answer sheet provided. ( 15 marks)
(ii)
How would you interpret EACH of the following entries taken from the Adjustments
Column of the worksheet?
Entry
(b)
( 4 marks)
(iii)
What does the total Provision for Depreciation shown on the worksheet represent?
( 1 mark)
(i)
(ii)
Company XYZ, manufacturing toys, made a net profit (after taxation) of $78 500 for
the year ended December 31, 1989. There were retained profits of $21 500 from the
previous year.
( 2 marks)
$10 000
5 000
10 000
7 500
Final
17 500
Prepare the XYZ Companys Appropriation of Profit Account and show the amount
of the profit to be carried forward to the next year.
( 8 marks)
6.
(a)
(i)
Prepare the Balance Sheet for Kismo Hardware Co. as at December 31, 1989 using
the balances given below.
(Note: Set out the Balance Sheet using appropriate headings and subsections.)
Capital, January 1, 1989
Cash in hand
Creditors
Furniture and Fittings
Stock, December 31, 1989
1990/adjustments
$
57 000
600
54 000
86 000
42 000
Drawings
Bank Overdraft
Debtors
Land and Buildings
Provision for Depreciation on Furniture and Fittings
Prepaid Insurance
Net Profit for the year
Mortgage Loan
12% Debentures
(ii)
(b)
(a)
7 000
31 000
63 000
190 000
15 900
2 000
2 700
110 000
120 000
( 7 marks)
( 6 marks)
Prepare the Trading and Profit and Loss Account of P. Higgs for the year ending June 30, 1989
from the following balances and additional information:
Balances:
$
9
10% Loan (due 1994)
Purchases
Sales
Carriage Inwards
Carriage Outwards
Bad Debts
Commission Received
80 000
13 200
16 000
26 500
96 760
1 200
3 300
2 160
970
$
Purchases
Returns
and
Allowances
Sales Returns and Allowances
Wages and Salaries
Discounts Received
Discounts Allowed
Rent and Rates
4 100
5 000
37 000
2 930
1 800
19 600
Additional Information:
1.
2.
3.
4.
5.
6.
(b)
(a)
( 16 marks)
Calculate:
(i)
(ii)
(iii)
(v)
7.
Average Stock
Rate of Stock Turnover
Gross Profit percentage on Sales
Gross Profit percentage on Cost of Goods Sold.
( 4 marks)
The following information was extracted from the books of Tom Johnson, a sole trader, who
does not maintain a double entry accounting system:
April 1, 1989
Stock
$ 990
$1 080
Debtors
3 625
4 040
Creditors
2 070
2 815
250
Tom passes all payments and receipts through the bank. The following is a summary of his
bank transactions for the year ended March 31, 1990.
1990/adjustments
Bank Summary
$ 8 000
Payment to Creditors
Balance b/d
Cash Received from Debtors
Cash Sales
11 000
600
General Expenses
Drawings
$8 595
3 600
500
The following information was also available for the year ended March 31, 1990:
Bad Debts written off
Discounts Allowed
335
Discount Received
235
Purchases Returns
150
(i)
(b)
$205
( 16 marks)
(ii)
( 1 mark)
(iii)
Prepare the Trading Account for the year ended March 31, 1990
(iv)
How would you interpret the balancing figure in the General Expenses Account?
( 1 mark)
( 7 marks)
Arrange the following steps in the Accounting Cycle in their correct sequence by numbering
the correct first step 1, the correct second step 2 and so on in the spaces on the answer
sheet provided.
Prepare trial balance
Prepare post-closing trial balance
Prepare Trading and Profit and Loss Account
Journalise
Journalise and post closing entries
Complete the worksheet
Journalise and post adjusting entries
Analyze source documents
Prepare balance sheet
Post to the ledger
1990/adjustments
( 5 marks)