FSTP - LRP Assessment - Questions

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AAT Level 3 Prepare Final Accounts for Sole traders and Partnerships FSTP LRP Assessment Questions

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Transcript of FSTP - LRP Assessment - Questions

Page 1: FSTP - LRP Assessment - Questions

AAT

Level 3

Prepare Final Accounts for Sole traders and Partnerships

FSTP

LRP Assessment

Questions

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AAT - LEVEL 3 : PREPARE F I NA L ACCOUN TS FOR SOLE TRADERS AN D PARTNERS HIPS (FSTP)

2 KAPLAN PUB LISHING

© Kaplan Financial Limited, 2015

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any firm or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Kaplan Publishing.

The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties. Please consult your appropriate professional adviser as necessary. Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials.

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LRP A SS ESS MEN T Q UEST I ON S

KAPLAN PUBL ISHI NG 3

1.1 I.T. SOLUTIONS

I.T. Solutions is owned by Justin Long and started trading on 1 October 20X8. You have been provided with the following summarised bank account, and are required to assist in the preparation of the first set of accounts for the year ended 30 September 20X9.

Bank summary – year ended 30 September 20X9

£

£

Capital introduced 16,000 Rent of premises 8,000 Receipts from trade receivables 49,600 Payments to trade payables 18,160 Travel expenses 4,300 Administration expenses 3,270 Drawings 28,000 Balance c/d 3,870 –––––– –––––– 65,600 65,600 –––––– ––––––

Additional information: • Justin transferred his own vehicle into the business on 1 October 20X8. It was valued at

£4,000. • On 30 September 20X9, trade receivables owed £6,300. • On 30 September 20X9, trade payables were owed £2,500. • Total supplies during the year were £22,000. Answer the following questions. (a) Complete the following sales ledger control account showing clearly the credit sales as

the balancing figure

Sales ledger control account

£ £ –––––– –––––– Total Total –––––– ––––––

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AAT - LEVEL 3 : PREPARE F I NA L ACCOUN TS FOR SOLE TRADERS AN D PARTNERS HIPS (FSTP)

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(b) Complete the following purchases ledger control account showing clearly the discounts received as the balancing figure.

Purchase ledger control account

£ £ –––––– –––––– Total Total –––––– ––––––

(c) Prepare the opening capital account as at 1 October 20X8, showing clearly all the capital

introduced.

Capital account

£ £ –––––– –––––– Total Total –––––– ––––––

1.2 LUKE

Luke sells office equipment. He buys a photocopier for £900. Complete the following sentences. (a) If a 40% mark-up was applied, the selling price, excluding sales tax (VAT), would be

(b) If the sales margin was 40%, the selling price, excluding sales tax (VAT), would be

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LRP A SS ESS MEN T Q UEST I ON S

KAPLAN PUBL ISHI NG 5

1.3 CHURCHILL TRADING

You are required to prepare the statement of profit or loss for Churchill Trading for the year ended 31 August 20X5 based upon the following information. The partners are Aimee and Heather. All the necessary year-end adjustments have been made, except for the transfer of profit to the current accounts of the partners.

Churchill Trading Trial balance as at 31 August 20X5

Dr £

Cr £

Accruals 3,000

Bank 1,250

Capital 11,000

Closing inventory 10,000 10,000

Depreciation charge 1,250

Profit on disposal of non-current assets 1,800

Drawings 3,000

General expenses 14,495

Machinery at cost 21,250

Machinery accumulated depreciation 9,900

Opening inventory 11,725

Prepayments 5,400

Purchases 42,300

Purchase ledger control account 14,150

Rent 6,200

Revenue 95,000

Sales ledger control account 20,000

Sales tax 3,020

Wages 11,000

147,870 147,870

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AAT - LEVEL 3 : PREPARE F I NA L ACCOUN TS FOR SOLE TRADERS AN D PARTNERS HIPS (FSTP)

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Churchill Trading Statement of profit or loss for the year ended 31 August 20X5

£ £

Revenue

Cost of goods sold

Gross profit

Plus:

Less:

Total expenses

Profit for the year

1.4 JOHN, JACKIE AND TEGAN

John, Jackie and Tegan are in partnership, producing accounts to the year ended 30 June. You are given the following information: • Partners’ annual salaries

– John £11,000 – Jackie £16,500 – Tegan nil

• Partners’ capital account balances as at 30 June 2008

– John £47,500 – Jackie £56,000 – Tegan £56,000

• Interest on capital is charged at 4% per annum on the capital account balance at the end of the financial year.

• The partners share the remaining profit of £75,000 as follows: – John 35% – Jackie 45% – Tegan 20%

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LRP A SS ESS MEN T Q UEST I ON S

KAPLAN PUBL ISHI NG 7

• Partners’ drawings for the year – John £18,000 – Jackie £35,000 – Tegan £12,750

Complete the following current accounts for the partners for the year ended 30 June 20X8. Show clearly the balances carried down.

Current accounts

John £

Jackie£

Tegan £

John £

Jackie £

Tegan £

Balance b/d 750 Balance b/d 1,900 600

–––––– –––––– –––––– –––––– –––––– ––––––

–––––– –––––– –––––– –––––– –––––– ––––––

1.5 OSMOND PARTNERSHIP

(a) You are preparing the statement of financial position for the Osmond partnership for the year ended 31 March 20X1. The partners are Aimee and Heather. All the necessary year-end adjustments have been made, except for the transfer of profit to the current accounts of the partners. Before sharing profits the balances of the partners’ current accounts are: • Aimee £1,000 credit • Heather £ 400 debit Each partner is entitled to £7,500 profit share.

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AAT - LEVEL 3 : PREPARE F I NA L ACCOUN TS FOR SOLE TRADERS AN D PARTNERS HIPS (FSTP)

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Calculate the balance of each partner's current account after sharing profits.

(i) Current account balance: Aimee £

(ii) Current account balance: Heather £

Note: These balances will need to be transferred into the statement of financial position

of the partnership in part (b). (b) You have been provided with the following trial balance.

All the necessary year-end adjustments have been made. Osmond Partnership Trial Balance as at 31 March 20X1

Dr

£ Cr £

Accruals 2,500 Administration expenses 40,000 Bank 4,100 Capital – Aimee 29,500 Capital – Heather 42,890 Cash 670 Closing inventory 20,000 20,000 Current account – Aimee 1,000 Current account – Heather 400 Depreciation charge 3,600 Disposal of non-current asset 3,500 Motor vehicles – cost 39,000 Motor vehicles – accumulated depreciation 18,500 Opening inventory 25,400 Allowance for doubtful debts 1,200 Allowance for doubtful debt adjustment 110 Purchases 83,300 Trade payables 28,500 Sales revenue 156,800 Trade receivables 78,920 Selling expenses 5,890 Sales tax (VAT) 4,000 ––––––– ––––––– Total 304,890 304,890 ––––––– –––––––

Complete the following statement of financial position for the partnership as at 31 March 20X1. You need to use the partners' current account balances that you have just calculated in part (a).

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LRP A SS ESS MEN T Q UEST I ON S

KAPLAN PUBL ISHI NG 9

Osmond Partnership Statement of financial position as at 31 March 20X1

£ £ £ Cost Depreciation Carrying

amount Non-current assets: ––––––– ––––––– Current assets: ––––––– Current liabilities: ––––––– ––––––– Net current assets ––––––– Net assets ––––––– Financed by: Aimee Heather

Total

Capital account Current account ––––––– ––––––– ––––––– ––––––– ––––––– –––––––

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AAT - LEVEL 3 : PREPARE F I NA L ACCOUN TS FOR SOLE TRADERS AN D PARTNERS HIPS (FSTP)

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