FINANCIAL ACCOUNTING 1

Transcription

1 FINBUS2 NOVEMBE 2012 EXAMINATION DATE: 5 NOVEMBE 2012 TIME: 09H00 12H00 TOTAL: 100 MAKS DUATION: 3 HOUS PASS MAK: 40% (BUS-AC1) FINANCIAL ACCOUNTING 1 THIS EXAMINATION PAPE CONSISTS OF 4 QUESTIONS: ANSWE ALL THE QUESTIONS QUESTION 1: MANUFACTUING ACCOUNTS (34 MAKS) QUESTION 2: ATIOS (18 MAKS) QUESTION 3: BANK ECONCILIATION (25 MAKS) QUESTION 4: DEBTOS AND CEDITOS CONTOL ACCOUNTS (23 MAKS) INSTUCTIONS: 1. ead the following instructions carefully before answering the paper, as failure to act upon them will result in a loss of marks. 2. Write your answers in your answer book, which is provided in the exam. 3. Ensure that your name and student number are clearly indicated on your answer book. 4. Write your answers in either blue or black ink in your answer book. 5. ead each question very carefully before you answer it and number your answers exactly as the questions are numbered. 6. Begin with the question for which you think you will get the best marks. 7. Note the mark allocations for each question give enough facts to earn the marks allocated. Don't waste time by giving more information than required. 8. You are welcome to use diagrams to illustrate your answers. 9. Please write neatly we cannot mark illegible handwriting. 10. Any student caught cheating will have his or her examination paper and notes confiscated. The College will take disciplinary measures to protect the integrity of these examinations. 11. If there is something wrong with or missing from your exam paper or your answer book, please inform your invigilator immediately. If you do not inform your invigilator about a problem, the College will not be able to rectify it afterwards, and your marks cannot be adjusted to allow for the problem. 12. This paper may be removed from the examination hall after the examination has taken place. NOTE: YOU MAY USE A NON-POGAMMABLE CALCULATO. Examiner: A Poole DAMELIN COESPONDENCE COLLEGE NOVEMBE 2012 PAGE 1 OF 5

2 ANSWE ALL THE QUESTIONS (100 MAKS) QUESTION 1: MANUFACTUING ACCOUNTS The following items appear in the Trial Balance of a company at 30 June 2012: Stocks 1 January 2012 Finished goods tons Work-in-progress aw materials Processing chemicals 530 Purchases aw materials Processing chemicals Depreciation Plant Factory buildings 400 Lease of city office Factory wages Factory overheads Factory power Sales tons ailage outwards Salaries General expenses aw materials returned Cash discounts allowed Stocks 30 June 2012 Finished goods tons aw materials Work-in-progress Processing chemicals 760 Prepare the following for this company for the six months ended 30 June 2012: (a) Manufacturing Account (23) (b) Trading Account (4) (c) Income Statement (7) [34] DAMELIN COESPONDENCE COLLEGE NOVEMBE 2012 PAGE 2 OF 5

3 QUESTION 2: ATIOS The balance sheet of a Peter Plumber revealed the following position: Fixed Assets Equipment at cost less depreciation Fixed deposit Current Assets Stock Sundry debtors less bad debts written off Cash at bank = A Less: Current Liabilities Sundry creditors and accruals = L Owner's Interest Capital Profit for the year = 0 (a) (b) Calculate the current ratio. Comment on whether the ratio is satisfactory or not. (4) Calculate the acid test ratio and comment on its acceptability or not. (4) (c) Calculate the debt / equity ratio and comment on the result. (4) (d) Suggest three ways in which the cash flow situation can be improved. (3 2 = 6) [18] DAMELIN COESPONDENCE COLLEGE NOVEMBE 2012 PAGE 3 OF 5

4 QUESTION 3: BANK ECONCILIATION Ola Stores required their bank account in their general ledger and the balance according to the bank statement, for September 2010, to be reconciled. Information: Closing totals before adjustments of the Cash eceipts Journal and Cash Payments Journal, respectively: Total receipts: Total payments: Bank charges of 108 had not been recorded by the business. 2 Interest earned for the month amounted to The following cheques did not appear on the bank statement for the month: number 48 for 555 number 60 for A cheque deposited by J Cook, into our account on 15 August 2010, was returned by the bank marked 'refer to drawer', Cheque number 35 for 62 that appeared on the August 2010 reconciliation still did appear on the September 2010 bank statement. 6 A deposit of which appeared in the August 2010 bank reconciliation as an 'outstanding deposit', did not appear on the bank statement. 7 An amount of 200 was deposited directly into the business' bank account as a payment by a debtor, J Jay. Our records were not yet updated with this deposit. 8 The bank statement had a credit balance of as at 30 September The opening bank balance in the general ledger of the business as at 1 September 2010, was (a) Complete the supplementary Cash eceipts Journal and Cash Payments Journal, respectively. Close off the journals. (5 2 = 10) (b) Complete the Bank Account in the General Ledger. (8) (c) Complete the Bank econciliation Statement as at 30 September (7) [25] DAMELIN COESPONDENCE COLLEGE NOVEMBE 2012 PAGE 4 OF 5

5 QUESTION 4: DEBTOS AND CEDITOS CONTOL ACCOUNTS The books of P Day showed that on 1 July 2012 the total of debit balances in the debtors' ledger was and the total of credit balances in the creditors' ledger was The following is a summary of the transactions that took place during July: Cash received from debtors Discount allowed to debtors 130 Cash paid to creditors Discount received from creditors 175 Credit sales Credit purchases Sales returns 86 Purchases returns 48 The following transactions were entered in Day's journal: July 25 Day, the owner of the business, took goods for his own use at cost 50. July 30 One of Day's motor vehicles, book value 800, was taken over for by W Bosch, a creditor, in part payment of the amount due to him. Interest was charged on overdue accounts of debtors, 552. Equipment purchased by cheque for 2 500, was erroneously posted to the control account. Use the information above to draw up the debtors and creditors control accounts respectively. [23] [100] TOTAL: 100 MAKS DAMELIN COESPONDENCE COLLEGE NOVEMBE 2012 PAGE 5 OF 5