1 Total Marks:7

Assets 95000 Assets 65000

Liabilities 40000 b. Liabilities 25000
a. Owners equity 55000 Owners equity 40000
(Marks 1) (Marks 1)

2 Total Marks:5.5
Year 1 Year 2 Year 3 Year 4
Current Assets 113,624 90,442 85,124 69,090
Non current assets 410,976 198,014 162,011 151,021
Total assets 524,600 288456 247,135 220,111

Current liabilities 56,142 40,220 15,583 17,539

Non current liabilities 240,518 78,585 60,100 30,222
Paid in capital 214,155 173,295 170,000 170,000
Retained earnings 13,785 -3644 1,452 2,350
Total liabilities and Owners equity 524,600 288456 247,135 220,111

3 Total Marks: 7.5

a.Depreciation.Each year for the next five years depreciation(40,000/5=8,000 each for the 5 years) will be charge
(Marks:2)
b.No effect on income statement
(Marks:2)
c.Cost of goods sold.3500 charged to the current years expenses and 3500 charged to next years expenses.Sale o
6200 in the next year.
(Marks:2)
d.Subscription expenses.36 charges to current year.36 charged to the next year
(Marks:1.5)

4 Total Marks: 5
Sales 275000
Cost of goods sold 164000
Rent 3,300
Salaries 27,400
Taxes 1,375
Other 50,240
Revenue 275000 (Marks :1)
Expenses 246,315 (Marks :2)
Net income 28,685 (Marks :2)
 Current assets 25000 Current ratio 2.2:1
Liabilities 40000 Current assets 33000
Owners equity 55000 Non current assets 55000
c. Non current assets 70000 Current liabilities 15000
(Marks 1) d. Owners equity 73000
(Marks 2) e.

ch for the 5 years) will be charged to income statement

ed to next years expenses.Sale of 6000 recorded as income in the current year and and
Non current assets 60000
Total assets 95000
Owners equity 70000
Current liability 25000
Current assets 35000
Current ratio 1.4
(Marks 2)
 1 Total Marks: 5.5
Year 1 Year 2 Year 3
Sales 12,011 11,968 11,545
Cost of goods sold 3,011 2,992 2,886
Gross margin 9,000 8,976 8,659
Other expenses 6,201 6,429 6,296
Profit before taxes 2,799 2,547 2,363
Tax expenses 1,120 1,019 945
Net income 1,679 1,528 1,418

2 Total Marks:7
Assets 100000 Assets
Liabilities 40000 Liabilities
b. Owners equity 60000 a. Owners equity
(Marks:1) (Marks:1)

3 Total Marks:5
Amount
Purchase for the period 78,000
Beginning Inventory 27,000
Ending Inventory 31,000
Cost of goods sold 74,000

4 Total Marks:7.5
Current liabilities , ending balance 50,000
current ratio, ending 1.6:1
Owners equity, beginning balance 120,000
Inventory, beginning balance 35,000
Purchases during the period 40,000
Inventory, ending balance 30,000
Gross margin percentage 45%
Profit margin 10%
Long term debt, ending balance 40,000
Answer
Cost of goods sold 45,000 Total assets
Sales 81818 Current assets
Gross profit 36,818 Non current assets
Net income 8182

Current assets 80000 Current Liab 50,000

Non current assets 138,182 Long term 40,000
 Total Liabili 90,000

Owners equ 128,182

Total Assets 218,182 Total Liabil 218,182
 Year 4
6840
2500
4340
2170
2170
870
1300

55000 Current assets 25000 Current ratio 2:01

40000 Liabilities 50000 Current assets 33000
15000 Owners equity 55000 Non current assets 55000
c. Non current assets 80000 Current liabilities 16500
(Marks:1) e. Owners equity 71500
(Marks:2) d.

Answer
218,182 (Marks:2.5)
80000 (Marks:2.5)
138,182 (Marks:2.5)
Non current assets 50000
Total assets 105000
Owners equity 70000
Current liability 35000
Current assets 55000
Current ratio 1.57
1 Total Marks: 5
Sales 300000
Cost of goods sold 170000
Rent 2,700
Salaries 30,400
Taxes 1,275
Other 49,240
Revenue 300000 (Marks :1)
Expenses 253,615 (Marks :2)
Net income 46,385 (Marks :2)

2 Total Marks:5.5
Year 1 Year 2
Current Assets 113,624 90442
Non current assets 410976 198,014
Total assets 524,600 288456

Current liabilities 56,142 40,220

Non current liabilities 240518 78585
Paid in capital 214,155 173,295
Retained earnings 13,785 -3644
Total liabilities and Owners equity 524,600 288456

3 Total Marks:7.5
Current liabilities , ending balance 40,000
current ratio, ending 2:01
Owners equity, beginning balance 150,000
Inventory, beginning balance 40,000
Purchases during the period 35,000
Inventory, ending balance 25,000
Gross margin percentage 50%
Profit margin 12%
Long term debt, ending balance 35,000

Cost of goods sold 50,000

Sales 100000
Gross profit 50000
Net income 12000

Current assets 80000 Current Liability

Non current assets 157000 Long term debt
 Total Liabilities

Owners equity
Total Assets 237000 Total Liabilitues and equity

4 Total Marks:7
Assets 120000
Liabilities 60000 c.
b. Owners equity 60000
(Marks:1)
Year 3 Year 4
85,124 69090
162,011 151,021
247135 220,111

15583 17539
60,100 30,222
170,000 170,000
1,452 2,350
247135 220,111

Answer
Total assets 237000 (Marks:2.5)
Current assets 80000 (Marks:2.5)
Non current assets 157000 (Marks:2.5)

40,000
35,000
 75,000

162,000
237000

Assets 65000 Current assets 25000

Liabilities 25000 Liabilities 40000
Owners equity 40000 Owners equity 55000
(Marks:1) a. Non current assets 70000
(Marks:1) d.
Current ratio 2:01 Non current assets 65000
Current assets 30000 Total assets 90000
Non current assets 52000 Owners equity 65000
Current liabilities 15000 Current liability 25000
Owners equity 67000 Current assets 25000
(Marks:2) e. Current ratio 1
(Marks:2)
 1 Total Marks:5
Amount
Purchase for the period 80,000
Opening Inventory 25,000
Closing Inventory 30,000
Cost of goods sold 75,000

2 Total Marks:7.5

a.Wages and salaries charged as an expense side on the income statament

(Marks:0.75)
b.Cost of goods sold. 4000 charged to the current years expense and 4000 charged to next years expens
current year and 6200 in the next year.
(Marks:2)
c.Subscription expenses.30 charges to current year.30 charged to the next year on the income statemen
(Marks:0.75)
d. Depreciation.Each year for the next four years depreciation(50000/4=12500) will be charged to incom
(Marks: 2)
e.No effect on income statement .
(Marks: 2)

3 Total Marks:5.5
Year 1 Year 2 Year 3 Year 4
Current Assets 113,624 90442 85,124 69090
Non current assets 410976 198,014 162,011 151,021
Total assets 524,600 288456 247135 220,111

Current liabilities 56,142 40,220 15583 17539

Non current liabilities 240518 78585 60,100 30,222
Paid in capital 214,155 173,295 170,000 170,000
Retained earnings 13,785 -3644 1,452 2,350
Total liabilities and Owners equity 524,600 288456 247135 220,111

4 Total Marks:7
Assets 95000 Assets 65000
Liabilities 40000 b. Liabilities 25000
a. Owners equity 55000 Owners eq 40000
(Marks 1) (Marks 1) c.
t

charged to next years expense.Sale of 6500 recorded as income in the

year on the income statement

2500) will be charged to income statement

Current as 25000 Current rat2.2:1 Non curren 60000

Liabilities 40000 Current as 33000 Total asset 95000
Owners eq 55000 Non curren 55000 Owners eq 70000
Non curren 70000 Current liab 15000 Current lia 25000
(Marks 1) d. Owners eq 73000 Current as 35000
(Marks 2) e. Current rat 1.4
(Marks 2)
 1 Total Marks:7.5

a.No effect on income statement .

(Marks:2)
b.Subscription expenses.41 charges to current year.41 charged to the next year on the income stateme
(Marks:1.5)
c.Cost of goods sold. 4500 charged to the current years expenses and 4500 charged to next years expe
the current year and 6800 for the next year.
(Marks:2)
c. Depreciation.Each year for the next eight years depreciation(95000/8=11875) will be charged to inc
(Marks:2)

2 Total Marks:7
Assets 100000 Assets 55000
Liabilities 40000 Liabilities 40000
b. Owners equity 60000 a. Owners equity 15000
(Marks 1) (Marks 1)

3 Total Marks: 5
Sales 325000
Cost of goods sold 175,000
Rent 3,700
Salaries 31,200
Taxes 1,500
Other 55,230
Revenue 325000 (Marks :1)
Expenses 266,630 (Marks :2)
Net income 58,370 (Marks :2)

4 Total Marks:5.5
Year 1 Year 2 Year 3 Year 4
Current Assets 113,624 90442 85,124 69090
Non current assets 410976 198,014 162,011 151,021
Total assets 524,600 288456 247135 220,111

Current liabilities 56,142 40,220 15583 17539

Non current liabilities 240518 78585 60,100 30,222
Paid in capital 214,155 173,295 170,000 170,000
Retained earnings 13,785 -3644 1,452 2,350
Total liabilities and Owners equity 524,600 288456 247135 220,111
t year on the income statement
00 charged to next years expenses.Sale of 7000 recorded as income in

=11875) will be charged to income statement

Current assets 25000 Current ratio 2:01

Liabilities 50000 Current assets 33000
Owners equity 55000 Non current assets 55000
c. Non current assets 80000 Current liabilities 16500
(Marks 1) e. Owners equity 71500
(Marks 2) d.
Non current assets 50000
Total assets 105000
Owners equity 70000
Current liability 35000
Current assets 55000
Current ratio 1.57
(Marks 2)
1 Total Marks:5
Amount
Purchase for the period 88,000
Beginning Inventory 36,000
Ending Inventory 28,000
Cost of goods sold 96,000

2 Total Marks:7.5
Current liabilities , ending balance 45,000
current ratio, ending 1.5:1
Owners equity, beginning balance 135,000
Inventory, beginning balance 45,000
Purchases during the period 37,500
Inventory, ending balance 32,000
Gross margin percentage 43%
Profit margin 14%
Long term debt, ending balance 47,000

Cost of goods sold 50,500

Sales 88596
Gross profit 38096
Net income 12404

Current assets 67500 Current Liability

Non current assets 171903.5 Long term debt
Total Liabilities

Owners equity
Total Assets 239403.5 Total Liabilitues and equity

3 Total Marks: 5.5

Year 1 Year 2
Sales 12,011 11968
Cost of goods sold 3,011 2,992
Gross margin 9000 8,976
Other expenses 6,201 6,429
Profit before taxes 2,799 2547
Tax expenses 1120 1,019
Net income 1,679 1,528

4 Total Marks:7
 Assets 120000
Liabilities 60000 c.
b. Owners equity 60000
(Marks 1)
 Answer
Total assets 239403.5 (Marks:2.5)
Current assets 67500 (Marks:2.5)
Non current assets 171903.5 (Marks:2.5)

45,000
47,000
92,000

147,404
239,404

Year 3 Year 4
11,545 6840
2886 2500
8,659 4340
6296 2170
2,363 2170
945 870
1,418 1300
Assets 65000 Current as 25000 Current rat 2:01
Liabilities 25000 Liabilities 40000 Current as 30000
Owners equity 40000 Owners eq 55000 Non curren 52000
(Marks 1) a. Non curren 70000 Current liab 15000
(Marks 1) d. Owners eq 67000
(Marks 2) e.
Non current assets 65000
Total assets 90000
Owners equity 65000
Current liability 25000
Current assets 25000
Current ratio 1
(Marks 2)