General Certificates of Education Advanced Level ... · PDF fileGeneral Certificates of...
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General Certificates of Education Advanced Level Examination- 2012
Revision Question Paper
Accounting II
Prepared by Ministry of Education
Model answers and the Marking Scheme
01.(a) PILOT PLC
Income statement for the year ending 31st of March 2012
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
Rs'000
01
02
03
04
05
06
3 400
^1 625&
1 775
135
^260&
^960&
^40&
^140&
510
-
510
Accounting notes for the year ending 31st march 2012(000)
Note 01 - Sales
Electric item 2 400
Textile 1 000
3 400
Note02 - other income
Interest 135
Note 03 - Other expenses
Stock written down 10
Stoke issue expenses 30
40
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Note 04 - Financial expenses
Debenture interest 120
Lease interest 20
140
Note 05 - 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 ^ 120-100& 20
Directors chargers 210
(b) Statement for the changes in equity for the years ending 31.3.2012
2011 04 01Balance
Building revaluation
Shares issue
Profit for the year
Paid dividends
Ordinary
shares
Evaluation
reserves
General
reserves
Rejoined
earnings
total
2 000
-
600
-
-
400
^200&
-
-
-
200
-
-
-
-
520
-
-
550
^40&
3 120
^200&
600
550
^40&
2 600 200 200 1 030 4 030
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.
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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 2011 03 31
Balance/revaluation/
cost
revaluation Added
$disposal
Balance
Land and building
Computers
Leasing assets
Photocopy machine
1 600
800
400
^ 200 &
-
-
-
-
-
1 400
800
400
3 800 ^ 200 & - 2 600
Depreciation
Computers
Photocopy machine
Net value
2011 04 01 2012 03
31
280
-
-
-
160
80
440
80
520
2 080
02. ^a&1. (i)
Year Machine - 1 Machine- 2
Net cash flow Net cash flow Net cash flow Net cash flow
0
1
2
3
4
5
^250 000&
65 000
75 000
110 000
60 000
30 000
^250 000&
^185 000&
^110 000&
0
-
-
^250 000&
70 000
90 000
120 000
80 000
60 000
^250 000&
^180 000&
^90 000&
-
-
-
Machine- 1 Payback period in 3 years
Machine-2 Payback period in 2 years 9 month
2 + 90 000 x 12
120 000
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(ii)
years
Discount
factor
Machine- 1 Machine- 1
Cash flow Net present
value
Cash flow Net present
value
0
1
2
3
4
5
1
9.0
0.8
0.7
0.6
0.5
^250 000&
65 000
75 000
110 000
60 000
30 000
^250 000&
58 500
60 000
77 000
36 000
15 000
^250 000&
70 000
90 000
120 000
80 000
60 000
^250 000&
63 000
72 000
84 000
48 000
30 000
NPV - 3 500 + 47 000
2. As per payback period -2nd
machine is suitable
According to the NPV- 2nd
machine is suitable
According to above calculation machine number 2 is recommended ,
Especially second machine has more profit than the 1st machine. Since selecting second is more
profitable. Have no risk due to selecting 2nd
machine as profit and future risk already have been
considered.
wd 1. Fixed cost = 6000000 = unit 12 000 Contribution 500 = Rs..12 000 000
Value = 12 000 x 1000 = Rs. 12 000 000 2. Margin of safety in unit = Expected sales – sales of BEP = 30 000 – 12 000
= unit18 000 Value of margin of safety
= unit18 000 x 1 000
= Rs.18 000 000 3. Expected annual profit or loss
Total contribution- Fixed cost
= 15 000 000 - 6 000 000
= Rs9 000 000 ^ Have No of alternative method &
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4. to earn 10000000 profit,
Fixed cost+expected profit
Unit contribution
= 6 000 000 + 10 000 000
500
=unit 32 000 5. to earn Rs 10000000 profit giving100/- discount
Fixed cost + expected profit Unit contribution = 6 000 000 + 10 000 000
400
= Unit40 000 6. if annual salaries and sales price were increased the no of units to be produced at BEP
Fixed cost
unit cost = 6 900 000
600
= unit11 500 03 ^w&
1 Net profit correction statement Rs’ 000
Profit before correction
Add:-Salary correction Drawing Deduct:-Rent
Motor vehicle damage loss
100 110
15
175
1 680
210 1890
^190& 1 700
2 Profit & loss appropriation (corrected) RS.’ 000
Net profit
Interest on capital –Kumudu
Vijaya
Saliya
Salaries
Profit shares -kumudu Vijaya
Saliya
200 400 400
160 80 80
1 700
^1000& ^380&
^320&
-
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3 Current Account Rs’ 000
Drawings
Drawings
Salaries B/C/D
Kumudu Vijaya Saliya B/B/F
Interest capital
Salaries
Profit shares
Rent
Kumudu Vijaya Saliya 100
55
-
465
100
55
-
520
100
-
100
660
245
202
-
160
15
19
403
-
80
-
-
295
380
80
-
620 675 860 620 675 860
Capital Accounts Rs.’ 000
B/C/D
Kumudu Vijaya Saliya B/B/F
Motor Vehicle
Kumudu Vijaya Saliya
2 000
4 000
4 000
2 000
4 000
3 000
1 000
2 020 4 030 4 000 2 020 4 030 4 000
^b&1metirial month8 x 2 000 x 10 = 160 000 Unit usage month4 x 3 000 x 10 = 120 000 month 8 x 500x2= 8 000
month4 x 1000x2 = 8 000
16 000 x 10
Production cost - direct materials 160 000 = 160 000
direct labored 80 000
Royalties 48 000 Overhead cost 32 000 Produces no of Units
= 320 000 up to December 500 x 8 = 4 000
Unit cost 320 000 up to March 1000 x 4 = 4 000
8 000 8 000
= Rs. 40/= ^04& a' Bank Account
dividends
B/C/D
3 000 4 000
7 000
B/B/F
Bank chargers
B/B/F
6 000 1 000
7 000
4 000
Bank reconciliation statement for the month of march -2012
Bank overdraft as per Bank accounts Added
Unrealized cheque- 5563020 4153362 less
unrealized cheque - 076814 overdraft as per bank statement
3 000 4 000
4 000
7 000 11 000
^4 000&
7 000
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alternative ^1& Bank reconciliation statement
Balance as per Bank A/C
Add - issued
Un presented cheque - 076814 Loss -unrealized cheque 5563020 4153362 Over draft as per Bank Statement
3 000 4 000
^4 000&
4 000
0
^7 000&
^7 000&
Alternative ^2& Bank reconciliation statement
Over draft as per bank Statement
Add - Un presented cheque Less- unrealized cheque
Over draft as per bank
3 000 4 000
7 000
4 000
11 000
^7 000&
4 000
Alternative^3&
Bank reconciliation statement
Over draft as per bank Account
Add-unrealized Cheque
Less – unpresented Over draft as per bank Account
3 000 4 000
^7 000&
7 000 0
^4 000&
^4 000&
^04& ^a&
01' Income and Expenditure A/C
Misplace sports equipment
M/V/Depreciation
Balding rent
Telephone charges
Salaries and Wages
Sundry expenses
2 000 5 000
45 000 15 000 12 100 32 200 11 000
122 300
Members subscription
Profit of musical show
Donation
Deficit
65 000 12 000 45 000 300
122 300
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Working musical show A/C
Dancing group
Ticket printing
Stage arrangement
Income & expenditure A/C
10 000 1 000 12 000 12 000
35 000
From sponsors
sales of tickets
15 000 20 000
35 000
02. Balance sheet as at 31
st of March 2012
Non current Assets
Sports equipment
Motor vehicle Non Current Assets
cash Accumulated fund
Balance 01.04.2012
Motor vehicle Donation
deficit of the year current
Accrued-Stage assessment
Expences-Telephone chargers
Salaries/wages
24 000
59 500 855 000 ^300&
5 000 1 600 3 200
45 000
855 000
24 000 924 000
914 200
9 800
924 000 05 (a)
Overhead distribution report Item Apportioned base Total Value Production dept Service dept
Rs Rs Rs Indirect salaries Number of employee 5: 5: 1 220 000 100 000 100 000 20 000 Power of machine Machine hours 4: 3 112 000 64 000 48 000 - Lighting Electricity Land area 7: 7:1 90 000 42 000 42 000 6 000 Rent and rates Land area 7: 7:1 30 000 14 000 14 000 2 000 Machine depreciation Machine Value 7: 4 110 000 70 000 40 000 - 562 000 290 000 244 000 Distribution of O.H.
of service department
Machinery hours 4: 3
16 000
12 000
(28 000)
562 000 306 000 256 000 -
(b)
S
e
r
i
a
l
No
Name earnings losses Total
deduct
ion
Net
salary
EPF
employ
ee Basic
salary
O.T. Total
salary
EPF
empl
oyee
Festival
advance
Housing
loan
Advan
ce
1 Yapa 32000 6000 38000 3200 1000 - 3000 7200 30800 4800
2 Mapa 32000 5300 37300 3200 1000 1000 - 5200 32100 4800
- - 75300 6400 2000 1000 3000 12400 62900 9600
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2 Salaries and Wages Control A/C
Paid E.T.F
Festival Advance
Housing loan
Salary advance
Cash
6400 2000 1000 3000
62 900
Salary 75300
75 300 75 300
Salaries and wages A/C Salaries and wages control
A/C
62 900
P/L 62 900
EPF Expenditure Paid EPF 9 600
P/L 9 600
Salary Advance
S.W. Control A/C 3000
Festival Advance A/C
S.W. Control 2 000
Paid EPF A/C B/C/D/ 16 000
16 000
S.W. Control
EPF Expense
6 400
9 600 16 000
Housing loan
S.W. Control 1 000
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01 ^a& Remain Stock Value 200 500 700 1400
Lost unit 1000 Remain unit 400 Value 0f remain stock= 400 x 10 4000 ^ 02 Marks &
^b& Cost of sold goods 200 x 6 = 1200
500 x 6 = 3000
300 x 10=3000
7200 ^ 02 Marks &
^c& gross profit Sales income 1000 x 20 - 20000 (-) cost of sales -(7200)
gross profit 12800 ^ 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 Investment activities
Sales of land
Purches of motor vehicals
Net cash genarated from Investment activities
Finance activities
Share issue
Obtain loans
re-payment of loan
paid devidends
Net cash genarated from finance activities
Increases of cash and cash equivalants of the year
re"000 555 300 ^50& 85
890 180
^265& ^50& 755 ^60&
^150&
250 ^800&
1000 500 ^800&
^75&
re'000
545
^550&
625 620
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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
Suspense A/C
Deference trial balance
Purchase
Sales
Debtors A/C
2 690
90
2 520
700
Errors in trial
Balance
6 000
6 000 6 000
4 Creditors A/C De
Capital A/C
^ being lossede of not recording cash paid by the owner to
creditors &
5 400
5 400
6 Machinary A/C De
Purchahse A/C
( Being corrected reording a machine purchese in purchese
A/C)
40 000
40 000
Machine depreciation A/C De
Provition for depreciation A/C
^ being corrected ommission of machine depriciation &
8 000
8 000
7 Suspense A/C De
Creditor (Saratha&
^ being corrected crediting received cash from a debitor to
suspense A/C &
15 000
15 000
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^07& ^a&i. Debtors control A/C
Balance
sales
B/B/F
100 000
325 000
Cash
Returned inword
Bad debt
Discount allowed
Creditors control
B/C/D
185 000
20 000
3 000
6 500
20 000
190500
425 000 425 000
190 500
ii. Amals A/C
Balance
sales
20 000 60 000
Cash
Returned inwords
Bad debt
B/C/D
65 000 2 000 3 000
10 000
80 000 80 000 B/B/F 10 000
Sunils A/C
Balance
Sales
Sales
Discount allowance
30 000 100 000
5 000 500
Cash
Discount allowed
B/C/D
55 000 5 000 75500
135 500 135 500 B/B/F 75500
Kamals A/C
Balance
Sales
40 000 125 000
cash return inward
B/C/D
40 000 10 000
115 000
165 000 165 000 B/B/F 115 000
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Chamilas A/C
Balance
40 000 Balance
Return inward A/C
Discount allowed
Creditors control
10 000 8 000 2 000
20 000
40 000 40 000
Vipulas A/C
Balance
B/C/D
10 000
5 000
Cash
15 000
15 000 15 000 B/B/F 5 000
iii. debtors list as at 30th of June 2011
Amila
Sunil
Kamal
Vipula
10 000 75 500 110 000 ^5 000& 190 500
^b& ^i&
Income Expenses Capital Liability Assets
6/1
+ 5000^Rent& -30 000^cash& +25000^prepaid rent&
6/2 +150 000
creditors& +150 000^Stock)
6/3 -20 000^Cash& +20 000(furniture&
6/10 +75 000
^Sales& +60 000
^Cost of sales& -60 000^stocks)
+75 000 ^cash&
6/15 +40 000 +40 000^office
equpment) 6/30 + 3 000 (Electricity) + 3 000
(Accsued
Electricity)
(ii) Windan business Equity Capital = 40 000 +Income = 75 000
115 000
- Expense = (68 000) 47 000
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