| (> 0668 | British Division BRITISH | December Exam Accounting OL Dr. Ramy Name:... Hagel Flaw ae lttt pea eecalee tnt teeters C152. reece SOE Men cece C4, aA DbQuestion 1; Multiple-choice questions, circle the correct answer. 1. Amina lists her currents assets in order of liquidity. In which order will the current assets appear? A. Bank, cash, inventory, trade receivables , bank, trade receivables, inventory ventory, trade receivables, bank, cash . Trade receivables, inventory, bank, cash 2. Why should a sole trader record all the financial information about her business? se she is required to do so by law cause she needs to pay her creditors on time ‘0 that she can prepare final accounts . So that she knows how much her debtors owe her 3. What is an income statement? A. A list of all the assets and liabilities of a business at a particular date B. A list of all the balances in the ledger accounts of a business at a particular date A statement of receipts and payments of a business during sa particular period summary of income and expenditure of a business luring a particular period | e4. The following information is provided. $ Revenue 220,000 Purchases : 130,000 Opening inventory _ | 10,000 Closing inventory 12,000 What is the cost of goods sold? A, 90,000 B, 92,000 © 128,000 D. 132,000 5. Which is revenue expenditure? A. Building an extension t B. Legal costs of buyin; ctory premises 6. Which item isa capital receipt for a food store? eee, A. Discount received for a prompt payment Interest received on bank deposit account Receipt from sale of shelving at book value . Receipt from sale of food products ellis 47. Which external user would be interested in the financial ————. statements of a business? A)Creditor . Employees C. Manager D. Owner A The table shows information relating to two businesses trading in the same type of goods. Which statement is correct? Business Rate of inventory Quick ratio turnover x 3 times a year Lol 9 times ayear _ 0.7:1 ji Business Y has a good rate of inventory turnover but poor liquidity - Business Y has poor rate of inventory turnover and has poor liquidity Business Z has a good rate of inventory turnover ptt has poor liquidity D. Business Z has a poor rate of inventory turno¢er and has poor liquidity9. A trader took goods costing $100 for his own use. How is this recorded in the ledger? A. Debit drawings, credit inventory @® Debit drawings, credit purchases C. Debit inventory, credit drawings D. Debit purchases, credit drawings | 10. Where are the accounts of credit customers found? A. Purchases journal B. Purchases ledger C. Sales journal © Sales ledger8 ‘QL Prince makes engine pars. His financial year ends on 30 September. The following items remained on Prince's books after the preparation of the incof statement for the year ended 30 September 2012. / Bank in Or’ Bank loan (repayable 2018) 2800 ¢ Capital 6800 / "/Ecuipment at cost 3600 ‘/inventory: 3300— Motor vehicle at cost 4500 — {, Other payables 900 / | Proven for depreciation ~ equement 00/ rovision for depreciation — motor vehicle 1000'/ «Trade payables 2700 + 7, Trade receivables 3000 7 REQUIRED (a) Prepare Prince's ay sheet at 30 — 2012 on the. en page. Non aut Assets Hator vow HS 00 (ooe) 5 00 Lo “Yy h aseo |(600) (2400 CunnbkAssals l6hoo | Livowkory | - 2,300 trode aeceinb, e080 Bonk PR ; | 13200 Capel 300 — Cyuwlibiatén = | OK oY loom | | 2 800 Cycek Labbe | — = | jade pafelts | 2700 | Other payadrbir =F 100Question 3: Prepare Ramy’s Income Statement for the year ended 31 May 2010 Sales revenue 300,000 — —Speninginventory 40,000_.~ L€losing inventory 80,000 -— Carriage inwards 300" Carriage outwards 1,000. Returns inwards 10,000 ~~ Returns outwards 5,000 Purchases 110,000 Rent 4,000-—~ “Commission received 300 ~ Ublectricity 400 \ Wages and salaries 18,000 -~ Sundry expenses 100 — Depreciation expense 36,000 /Ra Sobobesonve nKR ie. . 300,000 exc | jooB | __ APT OFES Iselin hocolefsole: Opamg Froselers ho, ove Puerchara 4A0;c00 +Carriyge Enweels - Closes Trvewtory ( Bee 20,000 = Veh Se (40/842) Gross profit : \ Rok i Blectwicly a pas 13,008 CPenren ao 4,992 (arniage akweds ( Orercr On naielod 20h / pepracr otis exp pe 5 4H a ©.www. dynamicpapers.com 6 Sophia is a food wholesaler. Her recsipts and payments during the financial year ended 31 March 2018 included both capital and revenue items. REQUIRED (a) State the meaning of each of the following terms and give an example of each. Capital expenditure uesning 24, the. uprhees dadia.. Sf SER SAQA. .nleatorntack Le: Exempt ft KA Abe Amat aX QgL. Capital receipt Meaning 2) Revenue expenditure Meany anncole tuts. te, cox petanacact hat bot Hey eh Alarne..6tBAbrmeck Example eng Revenue receipt Meaning .. die. necuphs.. _ DAL... ockw Aves, 2 walesR&venue exefenditys Q) On 31 March 2015 Akhtar Hussain discovered thal an item of revenue expenditure had been recorded as capital expenditure. : REQUIRED (6) Complete the following table by putting a tick (Y) in the correct column to indicate the effect ofthis error on the non-current assets and the profit for the year. \ —C is overstated | Ainderstated bd | non-current assets at 31 March 2015 Lo | proft forthe year ended 31 March 2015 a Pace] ra) [Fotal: 24) ov oucies ans wwweoyoligstucentroomcom {Tum over18 5} Maria Knumalo is a trader. Her financial year ends on 31 March, She provided the following summary of her assets and liabilities on 31 March 2014, $ s Capital 145,000 9) Profit for the year son) < “480 000 Fosetonde ae sem) of Bank overdraft 12200! Uw ‘Short term loan 5.000! 734.000 Non-current assets 175.000 Inventory 21500 Patty cash 400 Trade receivables 37400 234000 For the year ended $1 March 2014: $ Revenue 450 000 Cost of sales 310.000 Expenses 105 000 Maria Khumalo wishes to compare the performance of her business for the year ended 31 March 2074 with that of the previous financial year. REQUIRED (2) Complete the table below to show the ratios for Meria Khumalo's business for the year ended 31 March 2014. Calculations should be correct to two decimal places. ‘You may use the space on the following page for your workings. Year ended 31 March Ratio 2013 2014 percentage of gross profit to revenue (sales) 28.10% percentage of profit for the year to revenue (eles) 10.25% current ratio 1.95:1 Quick ratio 0.90: 4 Cpu? 175 7 D\/ a oucies 2014 casarzanains egyptigstudentroom.comWorkings pp= 1 201000 - 34,080 = 140 902 (b) Suggest two reasons for the change in the percentage pfGross profit to revenue (sales) + poaky with deos 2 LA, sei Prac (c) State the year in which Maria Khumalo had fetter control ov Give a reason for your answer. a iet expenses. Year ended 31 March 9 © [ Reason | Peecentoy Head Wes 412, 2522's Urbs Doth Way 3h f a Question 6{d) and (e) are on the next page. sara (Turn over egyptigstudentroom.com20 (a) Complete the following table by placing a tick (“’) in the correct column to show how each of the following transactions would affect the current ratio. The first one has been completed as an example. Increase | Decrease | No effect Receipt of long term loan v Cheque paid to credt supplier ZF oo Goods taken for own use we a Purchase of non-current asset ve on credit Peal Be 8] {e) State whether Maria Khumalo would be saffsfied with the change in her liquidity position. Give a reason for your answer. sates? AJ oat «9 rs 8 {[Total: 19] Pai recen s wht paty owned mall peed by copy dues has toon sought ed cared whe parla. Evey ‘Stone fea fas ata rt ye pe (CLES) ace apy hae buy ens requog erence Pav ring been chs Pe ‘icer stb passa maka sangeet pssib epernly. ‘Canty aeration Examietin prot tm Cans Asean’ Groep, Cartas Assess he band rama fUniaey ct Canbige Loca lomtutore Scie UCLES) wine tt Soprano Urs Canoe, euctes 2014 osama egyptigstudentroom.comG Question: Enter the following transactions into their accounts and balance off the accounts. | _/dan 1: The owner invested $10,000 cash into the business. dan 5: Bought motor van for $5,000 on credit from Khaled. c—dan 8: Bought equipment for $3000 cash. c-dan 12: Sold motor van for $2,500 on credit to Ahmed. an 17: Withdrew $2,000 cash and deposited them at the bank. _%an 21: Paid Khaled $8,000 by cheque. _ Jan 28: Ahmed paid us $2,500 cash. cap. to2 faul cash (0,00° 1Ge0e Fel Orbe bid 9,000 co Mob Janri Banh s,007] Tin S molwy Coco pail SeooBlank lage | ov Eee. eer = See i Bo ald Jonl3 @sh See py” 2Se0 jv {aou4 cv Jontt Cash 2, Jone: Kibo! 5,000 3| palace cl Bove om S:Q0°) febt blol 3000