General Certificates of Education Advanced Level Examination Revision Question Paper. Accounting

Transcription

1 General Certificates of Education Advanced Level Examination 2012 Revision Question Paper Accounting Prepared by Ministry of Education Model answers and the Marking Scheme II 01.(a) PILOT PLC Income statement for the year ending 31 st of March 2012 Rs'000 Sales Cost of sales Gross profit Other income Distribution cost Administration expense Other expense Finance expense Profit before tax Income tax Profit for the year ^1 625& ^260& ^960& ^40& ^140& Accounting notes for the year ending 31 st march 2012(000) Note 01 Note02 Note 03 Sales Electric item Textile other income Interest 135 Other expenses Stock written down 10 Stoke issue expenses 30 40

2 Note 04 Note 05 Financial expenses Debenture interest 120 Lease interest Income tax Free from income tax. Note 06 profit before tax has been calculated after deducting following expenses Rs. depreciation 240 Auditing chargers 60 Provision for warranties ^ & 20 Directors chargers 210 (b) Statement for the changes in equity for the years ending Building revaluation Shares issue Profit for the year Paid dividends Ordinary shares Evaluation General Rejoined total reserves reserves earnings ^200& ^200& ^40& ^40& Transaction No(ix) Relevant standards a Provisions, Contingent, Assets and Liabilities SLAS 36 / LKAS 37 A probable obligation Value cannot be measured reliably No need to make a provision and should make a disclose.

3 Transaction No(x) Relevant standard Provisions contingent asset & liabilities Have a present obligation as a result of past transaction Can be measured reliably since provisions should be made in financial statements (c) Property, plant & equipment Rs. 000 Assets /revaluation/ cost revaluation Added $disposal Land and building Computers Leasing assets Photocopy machine Depreciation Computers Photocopy machine Net value 02. ^a&1. (i) ^ 200 & ^ 200 & Year Machine 1 Machine 2 Net cash flow Net cash flow Net cash flow Net cash flow ^ & ^ & ^ & ^ & 0 ^ & ^ & ^ & ^90 000& Machine 1 Machine2 Payback period in 3 years Payback period in 2 years 9 month x

4 (ii) years Discount factor Machine 1 Machine 1 Cash flow Net present value Cash flow Net present value ^ & ^ & ^ & ^ & NPV As per payback period 2 nd machine is suitable According to the NPV 2 nd machine is suitable According to above calculation machine number 2 is recommended, Especially second machine has more profit than the 1 st machine. Since selecting second is more profitable. Have no risk due to selecting 2 nd machine as profit and future risk already have been considered. wd 1. Fixed cost = = unit Contribution 500 = Rs Value = x 1000 = Rs Margin of safety in unit = Expected sales sales of BEP = = unit Value of margin of safety = unit x = Rs Expected annual profit or loss Total contribution Fixed cost = = Rs ^ Have No of alternative method &

5 4. to earn profit, Fixed cost+expected profit Unit contribution = =unit to earn Rs profit giving100/ discount Fixed cost + expected profit Unit contribution = = Unit if annual salaries and sales price were increased the no of units to be produced at BEP 03 ^w& Fixed cost unit cost = = unit Net profit correction statement Rs 000 Profit before correction Add:Salary correction Drawing Deduct:Rent Motor vehicle damage loss 2 Profit & loss appropriation (corrected) RS ^190& Net profit Interest on capital Kumudu Vijaya Saliya Salaries Profit shares kumudu Vijaya Saliya ^1000& ^380& ^320&

6 3 Current Account Rs 000 Drawings Drawings Salaries Kumudu Vijaya Saliya Kumudu Vijaya Saliya B/B/F Interest capital Salaries Profit shares Rent Capital Accounts Rs. 000 Kumudu Vijaya Saliya Kumudu Vijaya Saliya B/B/F Motor Vehicle ^b&1metirial month8 x x 10 = Unit usage month4 x x 10 = month 8 x 500x2= month4 x 1000x2 = x 10 Production cost direct materials = direct labored Royalties Overhead cost Produces no of Units = up to December 500 x 8 = Unit cost up to March 1000 x 4 = = Rs. 40/= ^04& a' dividends Bank Account B/B/F Bank chargers B/B/F Bank reconciliation statement for the month of march 2012 Bank overdraft as per Bank accounts Added Unrealized cheque less unrealized cheque overdraft as per bank statement ^& 7 000

7 alternative ^1& as per Bank A/C Add issued Un presented cheque Loss unrealized cheque Over draft as per Bank Statement Bank reconciliation statement ^& 0 ^7 000& ^7 000& Alternative ^2& Over draft as per bank Statement Add Un presented cheque Bank reconciliation statement Less unrealized cheque Over draft as per bank Alternative^3& Over draft as per bank Account Addunrealized Cheque Less unpresented Bank reconciliation statement ^7 000& ^7 000& ^& Over draft as per bank Account ^& ^04& ^a& 01' Income and Expenditure A/C Misplace sports equipment M/V/Depreciation Balding rent Telephone charges Salaries and Wages Sundry expenses Members subscription Profit of musical show Donation Deficit

8 Working musical show A/C Dancing group Ticket printing Stage arrangement Income & expenditure A/C From sponsors sales of tickets sheet as at 31 st of March 2012 Non current Assets Sports equipment Motor vehicle Non Current Assets cash Accumulated fund Motor vehicle Donation deficit of the year current AccruedStage assessment ExpencesTelephone chargers Salaries/wages ^300& (a) Overhead distribution report Item Apportioned base Total Value Production dept Service dept Rs Rs Rs Indirect salaries Number of employee 5: 5: Power of machine Machine hours 4: Lighting Electricity Land area 7: 7: Rent and rates Land area 7: 7: Machine depreciation Machine Value 7: Distribution of O.H. of service department Machinery hours 4: (28 000) (b) S e r i a l No Name earnings losses Total Basic salary O.T. Total salary EPF empl Festival advance Housing loan Advan ce deduct ion oyee Net salary EPF employ ee 1 Yapa Mapa

9 2 Salaries and Wages Control A/C Paid E.T.F Festival Advance Housing loan Salary advance Cash Salary Salaries and wages control A/C Salaries and wages A/C P/L EPF Expenditure Paid EPF P/L Salary Advance S.W. Control A/C 3000 Festival Advance A/C S.W. Control Paid EPF A/C / S.W. Control EPF Expense Housing loan S.W. Control 1 000

10 01 ^a& Remain Stock Value Lost unit 1000 Remain unit 400 Value 0f remain stock= 400 x ^ 02 Marks & ^b& Cost of sold goods 200 x 6 = x 6 = x 10= ^ 02 Marks & ^c& gross profit Sales income 1000 x () cost of sales (7200) gross profit ^ 02 Marks & ^06& ^a& Thilakawardana LTD Cash flow statement for the years ending 31'30'2012 Oparating Activites Profit befor tax Adgesment Depreciation Profit of land sale Interest expense Oparating profit before working captal changes Deduction of debtors Deduction of creditors and accrued expenses Inventory increase Paid interest Paid tax Net cash genarated from oparating activities re" ^50& ^265& ^50& 755 ^60& ^150& re' Investment activities Sales of land Purches of motor vehicals Net cash genarated from Investment activities Finance activities Share issue Obtain loans repayment of loan paid devidends Net cash genarated from finance activities Increases of cash and cash equivalants of the year 250 ^800& ^800& ^75& ^550&

11 Workings ( Calculating profit before tax 3$31 retained earnings 800 Paid dividends 75 4$1 retained earnings ^500& Profit for the year 375 Income tax 180 Profit before tax 555 ^a& Kapugedara PLC 4 Creditors A/C De Capital A/C ^ being lossede of not recording cash paid by the owner to creditors & 6 Machinary A/C De Purchahse A/C ( Being corrected reording a machine purchese in purchese A/C) Machine depreciation A/C De Provition for depreciation A/C ^ being corrected ommission of machine depriciation & 7 Suspense A/C De Creditor (Saratha& ^ being corrected crediting received cash from a debitor to suspense A/C & Suspense A/C Deference trial balance Purchase Sales Debtors A/C Errors in trial

12 ^07& ^a&i. Debtors control A/C sales B/B/F Cash Returned inword Bad debt Discount allowed Creditors control ii. Amals A/C sales Cash Returned inwords Bad debt B/B/F Sales Sales Discount allowance Sunils A/C Cash Discount allowed B/B/F Kamals A/C Sales cash return inward B/B/F

13 Chamilas A/C Return inward A/C Discount allowed Creditors control Vipulas A/C Cash B/B/F iii. debtors list as at 30th of June 2011 ^b& ^i& 6/1 Amila Sunil Kamal Vipula ^5 000& Income Expenses Capital Liability Assets ^Rent& ^cash& ^prepaid rent& 6/ ^Stock) creditors& 6/ ^Cash& (furniture& 6/ ^Sales& ^Cost of sales& ^stocks) ^cash& 6/ ^office equpment) 6/30 + (Electricity) + (Accsued Electricity) (ii) Windan business Equity Capital = Income = Expense = (68 000)