Business Finance and Management Accounting
BUSINESS FINANCE AND MANAGEMENT ACCOUNTING
Unit short code : BUSFINACC
REFERRAL CW1 , JULY 2012
QUESTION 1 Adjustments | | | | | | | Closing stock = £111 317 | | | | | | Ordinary shares = 300 000 | | Preference shares = 50 000 | | nominal value = £0.5 | | | nominal value = £1 | | | share capital = 300 000* 0.5 = £150 000 | | share capital = £ 50 000 | | ordinary share dividend = 18% | | preference share dividend = 12% | | ordinary dividend = 150 000 * 0.18 = £27 000 | | preference dividend = 50 000 * 0.12 = £6 000 | | Total accrued dividends = 33 000 | | | | | Accrued rent = £802 | | | | | | | Accrued directors' remuneration = £6 000 | | | | | Debenture interest | | | | | | | 8% Debenture = £40 000 | | | | | Debenture interest = 40 000 x 0.08 = £3 200 | | | | Accrued interest (1/2) = 3 200 : 2 = £1 600 | | | | | Equipment cost = £225 000 | | | | r = 20% | | | | | | | | Motor vehicle cost = £57 200 | | r = 25%Accumulated depreciation = £14 300 | | | | | | Profit and Loss Account = £10 000 | | | | | | Reserves = £10 000 | | | | | |
PROFIT AND LOSS ACCOUNT Sales | 880 426 | | (Return inwards) | -18 400 | | Net Sales | 862 026 | 862 026 | Cost of Sales: | | | Opening stock | 102 994 | | Purchases | 419 211 | | Carriage inwards | 1 452 | | (Closing stock) | -111 317 | | COGS | 412 340 | | Gross profit | | 449 686 | Less expenses: | | | Interest | 3200 | | Rent, rate and ins. | 17 042 | | Discount allowed | 3 415 | | Directors' rem. | 88 400 | | Depreciation | 59 300 | | Wages and salaries | 123 289 | | Total expenses | 294 646 | | Net Profit | | 155 040 | (Dividends) | | -33 000 | Retained Profit | | 122 040 | Profit brought f/d | | 12 411 | (Tranfer to Reserves) | | -10 000 | Profit carried f/d | | 124 451 |
BALANCE SHEET NCA: | |
Unit short code : BUSFINACC
REFERRAL CW1 , JULY 2012
QUESTION 1 Adjustments | | | | | | | Closing stock = £111 317 | | | | | | Ordinary shares = 300 000 | | Preference shares = 50 000 | | nominal value = £0.5 | | | nominal value = £1 | | | share capital = 300 000* 0.5 = £150 000 | | share capital = £ 50 000 | | ordinary share dividend = 18% | | preference share dividend = 12% | | ordinary dividend = 150 000 * 0.18 = £27 000 | | preference dividend = 50 000 * 0.12 = £6 000 | | Total accrued dividends = 33 000 | | | | | Accrued rent = £802 | | | | | | | Accrued directors' remuneration = £6 000 | | | | | Debenture interest | | | | | | | 8% Debenture = £40 000 | | | | | Debenture interest = 40 000 x 0.08 = £3 200 | | | | Accrued interest (1/2) = 3 200 : 2 = £1 600 | | | | | Equipment cost = £225 000 | | | | r = 20% | | | | | | | | Motor vehicle cost = £57 200 | | r = 25%Accumulated depreciation = £14 300 | | | | | | Profit and Loss Account = £10 000 | | | | | | Reserves = £10 000 | | | | | |
PROFIT AND LOSS ACCOUNT Sales | 880 426 | | (Return inwards) | -18 400 | | Net Sales | 862 026 | 862 026 | Cost of Sales: | | | Opening stock | 102 994 | | Purchases | 419 211 | | Carriage inwards | 1 452 | | (Closing stock) | -111 317 | | COGS | 412 340 | | Gross profit | | 449 686 | Less expenses: | | | Interest | 3200 | | Rent, rate and ins. | 17 042 | | Discount allowed | 3 415 | | Directors' rem. | 88 400 | | Depreciation | 59 300 | | Wages and salaries | 123 289 | | Total expenses | 294 646 | | Net Profit | | 155 040 | (Dividends) | | -33 000 | Retained Profit | | 122 040 | Profit brought f/d | | 12 411 | (Tranfer to Reserves) | | -10 000 | Profit carried f/d | | 124 451 |
BALANCE SHEET NCA: | |