1 (a) Debtors
$ $
Balance b/d 9 300 Bank 112 070 (1)
Sales 113 000 (1) Balance c/d 10 230 (1)
122 300 122 300 [3]
(b) Creditors
$ $
Bank 95 400 (1) Balance b/d 8 700
Balance c/d 9 570 (1) Purchases 96 270 (1)
104 970 104 970 [3]
(c) (i) Working capital calculation at 30 September 2007
$ $
Stock 14 300
Debtors 9 300
Cash at bank 6 400
30 000 (1)
Creditors 8 700 (1)
Working capital 21 300 (1) [3]
(ii) Working capital calculation at 30 September 2007
$ $
Stock 15 730 (1 of)
Debtors 10 230 (1 of)
25 960
Creditors 9 570 (1 of)
Bank Overdraft 11 530 (1) 21 100
Working capital 4 860 (1 of) [5]
2 (a) Sales Ledger Control account
$ $
Balance b/d 33 200 (1) Bank 135 000 (1)
Sales 163 100 Bad debts 5 500 (1)
Discount allowed 7 200 (1)
Balance c/d 48 600 (1)
196 300 196 300
Sales on credit 163 100
Cash sales 56 000 (1)
219 100 (1of)
Accept any format
(b) Gross profit 40% × $219 100 (of) = $87 640 (1of)
Net profit 5% × $219 100 (of) = $10 955 (1of)
3 (a) (i) Assets $ $
Office equipment 16 000
Trade receivables (debtors) 14 200
Other receivables (prepaid expenses) 100
Cash (bank) 3 500
33 800 (1)
Liabilities
Non-current liabilities (6% Loan) 10 000
Other payables (accrued rent) 400
10 400 (1)
Capital 23 400 (1) [3]
(ii) $
Receipts of consultancy fees 74 000 (1)
Trade receivables (debtors) at 31 March 2010 11 000 (1)
85 000
Trade receivables (debtors) at 1 April 2009 14 200 (1)
Consultancy fees for the year 70 800 [3]
(b) Indira – Income statement (profit and loss account) for the year ended 31 March 2010
$ $
Consultancy fees 70 800 (1)of
less
Depreciation on equipment 3 250
Wages 23 600
Finance costs (loan interest) 600 (1)
General expenses (12 900 + 100 – 500) 12 500 (2)
Rent (9 000 – 400 + 600) 9 200 (2)
49 150
Profit for the year (net profit) 21 650 (1)of [7]
(c) Balance of assets, liabilities, trade receivables (debtors), trade payables (creditors) can
readily be obtained.
Individual transactions will be recorded and can be located easily.
Accuracy of the accounts can be checked at regular intervals.
Profit can be calculated at points in the accounting year.
The accounts can be presented to the bank in order to obtain a loan or overdraft facility.
2 marks per advantage × 2 [4]
4 (a)
$ $
Bank received 60 500 Bank payments 34 900
Trade receivables 30 April 8 400 Trade payables 30 April 9 300
68 900 44 200
Trade receivables 1 May 9 750 Trade payables 1 May 10 500
Sales 59 150 (3) Purchases 33 700 (3) [6]
(b)
Tanvir
Income Statement for the year ended 30 April 2011
$ $
Revenue (sales) 59 150 (1of)
Less Cost of sales
Opening inventory 5 250
Add purchases 33 700 (1of)
38 950
Less closing inventory (11 000)
Cost of sales (27 950)
Gross profit 31 200 (1of)
Less
Wages 15 000
Light & heat 3 350 (1)
General expenses 6 000
Loan interest 1 200 (1)
Loss on sale 250 (1)
Depreciation 5 000 (2)
(30 800)
Profit for the year 400 (1of) [9]
(c)
Balance Sheet at 30 April 2011
$ $
Non-current assets 42 000
Current assets
Inventory 11 000
Trade receivables 8 400 (1)
19 400
Current Liabilities
Trade payables 9 300
Accruals 1 450 (1)
Bank overdraft 10 250
21 000
Net Current Assets (1 600)
40 400
Long term liabilities
6% Bank loan (20 000) (1)
20 400
Capital 1 May 2010 25 000
Add Profit for the year 400 (1of)
25 400
Less Drawings ( 5 000) (1)
20400 [5]
5 (a) Individual accounts of e.g. trade receivables, maintained
Balances available at all times
Each transaction recorded for ease of reference
Other valid reasons
(b) Leong
Statement of Affairs at 30 September 2012
$ $
Non-current assets
Motor vehicle 7 700 (1)
Current assets
Inventory 11 600
Trade receivables (6 500 – 500) 6 000 (2)
Other receivables (350 + 100) 450 (2)
Bank deposit 2 600
Cash 50
20 700 (1)
Current liabilities
Trade payables 8 100
Other payables 900
9 000 (1)
Net current assets 11 700
19 400
Non current liabilities
Loan (9 000) (1)
10 400
Capital 10 400 (2 or 1 of) [10]
(c) $
Opening capital 6 000 (1)
Profit for the year 13 200 (1 of)
19 200
Drawings (8 800) (1)
Closing capital 10 400 (1 of) Accept alternative formats [4]
