2012_nov_paper_11
2
November 2012 paper 11 1 B Insurance Op Balance 800 P + L (800 + half 2100) 1850 Bank 2100 Cl balance 1050 2 A The change in the provision is an expense (decreasing profit) and reduces the net accounts receivable 3 B Dividends Received P & L 8700 Balance 7500 Owing (receivable) 1200 8700 8700 4 D 5 D 6 D Profit = revenue – business expenses = 3000 – 1000 – 600 = $1400 7 A 8 C Bank Reconciliation Balance per statement (937) Unpresented cheques (214) Unlodged deposits 35 Balance per cash book (bank charges already on bank statement d=so are ignored) (1116) 9 A Purchases ledger control Discounts received 1 200 Balance 15 300 Balance 14 100 10 C 11 D Finished goods are in the trading account 12 C Correcting an over valuing of opening stock will reduce COGS and increase net profit. No change to closing inventory as this i s derived from a physical stock take. 13 B Partnership act entitles partners to 5 % on advances (loans) only. 14 A Profit appropriatio n Note – depreciation and interest on loan are both expenses i.e. deducted from the revenue before calculating net profit. Net profit 18 500 Add interest on drawings 900 Less Interest on capital (2400) Less salary (5000) Residual profit* 12 000 15 B 7 members @ (200 / 20) = $70 income for the current year. The remaining $1330 (1400 – 70) is a deferred income. 16 D 500 oldest goods are sold therefore COGS = (200 x 250 + 300 x 200) = 110000. Sales = 500 x 550 = 275 000 Profit = 275 – 110 = $165 000 17 C Cash sale recorded in cash book. General journal records all transactions that do not fit in one of the other journals (Credit sales/purchases, returns i n/out 18 A Vehicle 1 / 1 / 1 Bank/ Ac Pay 10 000 31/12/1 Depreciat ion 1000 31/12/2 Depreciation 1000 1/1/3 Disposal 8000 Disposal Vehicle . 8000 Bank 6500 Loss on sale 1500 19 B Profits decrease (interest). Net current assets increase (cash in from debenture) 20 B Equity increases by amount of shares x issue price (including premium) (5000 x 1.20) = 6000. Debentures are not equity so have no effect.
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Transcript of 2012_nov_paper_11
November 2012 paper 111BInsurance
Op Balance800P + L (800 + half 2100)1850
Bank2100Cl balance1050
2AThe change in the provision is an expense (decreasing profit) and reduces the net accounts receivable
3BDividends Received
P & L 8700Balance7500
Owing (receivable)1200
87008700
4D
5D
6DProfit = revenue business expenses = 3000 1000 600 = $1400
7A
8CBank Reconciliation
Balance per statement(937)
Unpresented cheques(214)
Unlodged deposits35
Balance per cash book (bank charges already on bank statement d=so are ignored)(1116)
9APurchases ledger control
Discounts received1 200Balance15 300
Balance14 100
10C
11DFinished goods are in the trading account
12CCorrecting an over valuing of opening stock will reduce COGS and increase net profit.No change to closing inventory as this is derived from a physical stock take.
13BPartnership act entitles partners to 5 % on advances (loans) only.
14AProfit appropriation
Note depreciation and interest on loan are both expenses i.e. deducted from the revenue before calculating net profit.
Net profit18 500
Add interest on drawings900
Less Interest on capital(2400)
Less salary(5000)
Residual profit*12 000
15B7 members @ (200 / 20) = $70 income for the current year. The remaining $1330 (1400 70) is a deferred income.
16D500 oldest goods are sold therefore COGS = (200 x 250 + 300 x 200) = 110000.Sales = 500 x 550 = 275 000Profit = 275 110 = $165 000
17CCash sale recorded in cash book. General journal records all transactions that do not fit in one of the other journals (Credit sales/purchases, returns in/out
18AVehicle
1 / 1 / 1Bank/ Ac Pay10 00031/12/1Depreciation1000
31/12/2Depreciation 1000
1/1/3Disposal8000
Disposal
Vehicle .8000Bank6500
Loss on sale1500
19BProfits decrease (interest). Net current assets increase (cash in from debenture)
20BEquity increases by amount of shares x issue price (including premium) (5000 x 1.20) = 6000.Debentures are not equity so have no effect.
21CA. Would require inventory turnoverB. A profitability ratio is requiredD. No ratio can be used to predict this
22BTrade payables turnover = TP / credit purchases x 365 = 40 / 320 = 45.65
23CROCE = operating profit / capital employed (equity + non-current liabilities) = 200 / 1000 = 20%
24C1. Has no effect.2. Would improve net (operating) profit3. Would improve other revenue and therefore net profit4. Would only improve gross profit
25BA graph of total costs starts where fixed cost intercepts the Y axis and slopes upwards to the right (the slope is = to variable cost)
26BIt is part fixed (salary) and part variable (commission)
27DContribution = 75% of sale price (20 x 75% )= $15Must sell sufficient units so that contribution covers fixed costs + desired profit(150 + 300) / 15 = 30000 units
28A
29AOverhead absorption rate = estimated overhead / estimated patient days = 11500000/(25000x10) = $46
30DAbsorption rate = budgeted overhead (150) / budgeted hours (10) = $15 per direct labour hourOverheads absorbed during year = Actual hours (9500) x absorption rate (15) = 142500Under applied = Absorbed (142 500) actual (160000) = $17500
