ACCOUNTING LYCEUM
  • Home
  • CAPE® Suggested Solutions
  • CSEC® Suggested Solutions
  • Tutorials & Tips
  • Home
  • CAPE® Suggested Solutions
  • CSEC® Suggested Solutions
  • Tutorials & Tips
Search
Cape Accounting

     Suggested Solutions

Unit 1: May 2013, Question #1 (f)

3/28/2018

1 Comment

 
No.1 (f) Explanations: 
Note 1:
The purchase of the welding plant will give rise to a liability of $50,000 that is; ($150,000-$100,000), owing to Welders International as only a part payment was made.
​
Note 2: The unused office supplies on hand is an asset of D&G Ltd, however the portion that has been used during the period must be expensed. As a result the office supplies balance must be reduced to $2,500 by expensing $22,500, that is; (25,000-$2,500). At the end of the period this expense must be transferred to the Income Statement.

Read More
1 Comment

unit 1: May 2011, Question #1(a)

3/2/2018

4 Comments

 
Workings:
Important note; the year end for James Sargeant Compnay is the 31st March, 2009
Note 1
One month's prepayment for rent was made for April 2009. The value of the prepayment is $5,550/6mths = $925.
Note 2
Electricity has been accrued up to March 2009, but has only been paid up to 31st December, 2008. Therefore the entire amount of $1,785 must be recorded as an accrual.
Note 3
Calculation of the depreciation expense for the year ended 31st December, 2009 - 
18% ($138,900-$45,500) = $16,812.
Note 4
Inventory should be valued at the lower of cost and net realizable value. The cost of the inventory is $2,645 and its net realizable value is $4,000-$2,250 = $1,750. Therefore the value of the stock needs to be reduced by $895, that is $2,645-$1,750.
Note 5 
The updated provision for doubtful debt balance is 8% of $20,000 = $1,600. Therefore the current provision of $1,000 needs to be increased by $600.

Read More
4 Comments

    Author

    The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.

    Archives

    May 2018
    April 2018
    March 2018
    February 2018
    January 2018

    Categories

    All
    Unit 1: Adjusting Journals
    Unit 1: Business Structures
    Unit 1: Capital And Reserves
    Unit 1: Contingencies
    Unit 1: Partnerships
    Unit 1: Ratio Analysis
    Unit 1: SOFP And SOCI
    Unit 1: Statement Of Cashflows
    Unit 2: Classification Of Costs
    Unit 2: Job Costing
    Unit 2 Manufacturing Accounts
    Unit 2: Marginal Vs Absorption Costing
    Unit 2: Remunerations
    Unit 2: Traditional Vs Activity Based Costing

    RSS Feed

Proudly powered by Weebly
  • Home
  • CAPE® Suggested Solutions
  • CSEC® Suggested Solutions
  • Tutorials & Tips