(Total: 15 marks)
KAPLAN PUBLISHING
511
PRACTICE ANSWERS
Chapter
24
PRACTICE ANSWERS
512
KAPLAN PUBLISHING
Section A: Answers to Objective Test Questions
The regulatory and conceptual framework
1
D
2
D
3
A
4
A
5
D
The other three options contain items which are not considered to
contribute towards reliability.
6
D
Double entry bookkeeping
7
D
8
D
9
C
10
B
11
C
Sales tax
12
$1,260
Sales tax
$
$
Purchases
2,100
Sales
3,500
(17.5% × 12,000)
23,500 × 17.5/117.5
Expenses
140
(17.5% × 800)
––––––
Bal c/f
1,260
3,500
––––––
––––––
Bal b/f
1,260
13
B
Chapter 24
KAPLAN PUBLISHING
513
14
B
Sales tax
$
$
Purchases
3,150.00
Sales
4,112.50
(17.5 % × 18,000)
27,612.50 × 17.5/117.5
Bal c/f
962.50
––––––
––––––
4,112.50
4,112.50
––––––
––––––
Bal b/f
962.50
15
D
$
$
Assets
Cash (1,000 + 1,175)
2,175
Inventory
400
–––––
2,575
Liabilities
Payables (800 × 1.175)
940
Sales tax (175 – 140)
35
–––––
(975)
–––––
1,600
–––––
Capital Share
capital
1,000
Profit (1,000 – 400)
600
–––––
1,600
–––––
PRACTICE ANSWERS
514
KAPLAN PUBLISHING
Inventory
16
$550
A B C
Total
$
$
$
$
Cost
7
10
19
NRV
13
8
14
Lower of cost or NRV
7
8
14
× Number of units
20
25
15
–––
–––
–––
Valuation 140
200
210
550
–––
–––
–––
17
A
(35 × $15) + (30 × $20) = $1,125
18
C
19
Selection
Carriage outwards
Depreciation of factory plant
Correct
Carriage inwards
Correct
General admin overheads
20
$122,900
400 items
$
Cost
400 × $4
1,600
NRV
(400 × $3) – $200
1,000
Therefore use NRV.
200 items
$
Cost
200 × $30
6,000
NRV
(200 × $35) – $1,200 – $300
5,500
Therefore use NRV.
Total inventory figure = $116,400 + $1,000 + $5,500 = $122,900.
Chapter 24
KAPLAN PUBLISHING
515
Non-current assets
21
$3,291
$
Assets held all year ($15,000 – 8,000) × 25%
1,750
Asset disposed of $8,000 × 25% × 8/12
1,333
Asset acquired $10,000 × 25% × 1/12
208
––––––
Total depreciation
3,291
––––––
22
D
23
$28.80 loss
$
Proceeds of sale
1,200.00
CA at disposal (2,400 – 480 – 384 – 307.20)
(1,228.80)
––––––––
Loss on disposal
(28.80)
––––––––
Depreciation to disposal
Yr 1: $2,400 × 20% = $480
Yr 2: $(2,400 – 480) × 20% = $384
Yr 3: $(2,400 – 480 – 384) × 20% = $307.20
24
$112,000
$100,000 + $7,000 + $5,000 = $112,000
25
$540
$
Assets held all year (5,000 – 300 – 600) × 10%
410
Disposals
$300 × 10% × 2/12
5
$600 × 10% × 10/12
50
Acquisition $1,000 × 10% × 9/12
75
–––––
Depreciation charge for the year
540
–––––
PRACTICE ANSWERS
516
KAPLAN PUBLISHING
26
$2,500
$30,000 – $6,000
4
×
5
12
=
$2,500
Accruals and prepayments
27
$150 and $1,525
Electricity
$
$
Bank
400 Bal b/f
250
Bank
350
Bank
425 Profit or loss (balancing
figure)
1,525
Bank
450
Bal c/f (1/3 × 450)
150
–––––
–––––
1,775
1,775
–––––
–––––
28
$1,300 and $75 accrual
Electricity
$
$
Bal b/f
25 Bal b/f
Bank (12 × 100)
1,200
Profit or loss
1,300
(350 + 375 + 275 + 300)
Bal c/f (ß)
75
–––––
–––––
1,775
1,300
–––––
–––––
Bal b/f
75
Chapter 24
KAPLAN PUBLISHING
517
29
$1,200
Rent
$
$
Bal b/f
200
Bank
1,200 Profit or loss (ß)
1,200
Bal c/f
200
–––––
–––––
1,400
1,400
–––––
–––––
Bal b/f (2/12 × 1,200)
200
30
$1,160
Light and heat
$
$
Bank (240 + 10)
250 Bal b/f
240
Bank
260
Bank
220
Bank
210 Profit or loss (ß)
1,160
Bank
230
Bank c/f
230
–––––
–––––
1,400
1,400
–––––
–––––
Bal b/f
230
(last quarter’s bill)
31
$1,340
Stationery
$
$
Bal b/f
80
Bank
1,350 Expense to P&L (ß)
1,340
Bal c/f
70
200
–––––
–––––
1,420
1,420
–––––
–––––
Bal b/f
70
PRACTICE ANSWERS
518
KAPLAN PUBLISHING
Irrecoverable debts and allowances for receivables
32
$46,550
$50,000 – $1,000 – $2,450 = $46,550
33
$3,700 and $76,500
Receivables
$
$
Bal b/f
82,500 Irrecoverable debts
4,750
Bal c/f
77,750
––––––
––––––
82,500
82,500
––––––
––––––
Bal b/f
77,750
Irrecoverable debts expense
$
$
Receivables
4,750 Decrease in allowance
750
(1000 + 500 + 3250)
Cash receipt from debt
previously written off
300
Profit or loss account
3,700
–––––
–––––
4,750
4,750
–––––
–––––
$
Allowance required at 31 March
1,250
Opening allowance
2,000
–––––
Movement in allowance balance
750 decrease
Net receivables = $77,750 – $1,250 = $76,500
Chapter 24
KAPLAN PUBLISHING
519
34
$260
Allowance for receivables
$
$
Bal b/f
700
Irrecoverable debts (ß)
360
Bal c/f
340
–––––
–––––
700
700
–––––
–––––
Bal b/f
340
Irrecoverable debts
$
$
Receivables
450 Decrease in allowance
360
Receivables
170 Profit or loss account (ß)
260
–––––
–––––
620
620
–––––
–––––
35
$400
Receivables
$
$
Bal b/f
47,800 Bank
150
Irrecoverable
debts
150
Bal c/f
47,500
––––––
––––––
47,800
47,800
––––––
––––––
Bal b/f
47,800
PRACTICE ANSWERS
520
KAPLAN PUBLISHING
Irrecoverable debt expense
$
$
Increase in allowance
250 Profit or loss expense
400
Receivables
150
–––––
–––––
400
400
–––––
–––––
36
$99,500 and $3,035
Receivables
$
$
Bal b/f
100,000 Bank
500
Bal c/f
99,500
––––––
––––––
100,000
100,000
––––––
––––––
Bal b/f
99,500
Do'stlaringiz bilan baham: |