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Csec Principles of Accounts

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CSEC: MAY 2013, QUESTION #7

4/4/2018

12 Comments

 
No. 7(a): One item of revenue and one item of capital expenditure:
Revenue expenditure – The payment of rent expenses
Capital expenditure – The purchase of the packaging machine.
No. 7(b): Below are the 'T-accounts’ requested opened in the appropriate ledgers:
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I hope that you found this proposed solution helpful! If you did please share it! Also, feel free to ask any questions or to make your comments below. Good Luck!
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CSEC: MAY 2013, QUESTION #6

4/4/2018

2 Comments

 
No. 6(a) (i): The fixed assets of Sautec Credit Union are:
  1. Loans to members
  2. Equipment
 
No. 6(a) (ii): The current liabilities of Sautec Credit Union are:
  1. The unpaid telephone bill.
  2. Mortgage interest outstanding.
  3. Interest income received in advance.
No. 6(a) (iii): Below is the Balance Sheet Extract of Sautec Credit Union showing the capital section as at 1st January 2013:

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Csec: May 2013, Question #5

4/4/2018

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No. 5(a) (i): The gross pay for Mark is calculated as follows:
Mark’s gross pay = 27 hours x $30 = $810.

No. 5(a) (ii): The gross pay for John is calculated as follows:
John’s gross pay = 40 hours x $30 = $1,200 (basic hours)
                              = 6 hours x 1.5($30) = $270 (overtime hours)
Total gross pay for John = $1,200 + $270 = $1,470. 
No. 5(b): Below is the completed payroll form for Mark and John using the format specified:
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No. 5(c): One difference between ‘statutory deductions’ and ‘voluntary deductions’ is:
Statutory deductions are mandated by law therefore an employer is obligated to deduct it from an employee’s salary. Voluntary deductions on the other hand are not mandated by law and is usually based on the request or approval of an employee.
I hope that you found this proposed solution helpful! If you did please share it! Also, feel free to ask any questions or to make your comments below. Good Luck!
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Csec: May 2013, Question #4

4/4/2018

3 Comments

 
No. 4(a): Calculation of missing figures and preparation of the Statement of Raw Materials Consumed:
Calculation of missing figures:
  1. Raw materials inventory at 1st January, 2012 = 300 metres x $19 = $5,700.
  2. Raw materials inventory at 31st December, 2012 = 340 metres x $24 = $8,160.
  3. Purchases of raw materials = (4,500 metres x $19)+(2,150 metres x $24) = $85,500+$51,600 = $137,100.
  4. Return outwards of raw materials = (100 metres x $24) = $2,400.
Below is the Statement of Raw Materials Consumed:
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Csec: May 2013, Question #3

4/4/2018

6 Comments

 
No. 2(a): Calculation of currents assets and current liabilities using the current ratio:

  1. The current ratio formula is Current Assets/Current liabilities.  Therefore the  current assets as at 30th June 2011 can be calculated as follows:
Current Assets/$12,000 = 2
 Current Assets = $12,000 x 2 = $24,000.
     2. The  current liabilities as at 30th June 2012 can be calculated as follows:
$60,000/Current Liabilities = 4
Current Liabilities = $60,000/4 = $15,000.
 
2(b): Calculation of:

    i.   Average Stock = Opening  stock + Closing stock/2 = ($6,800 + $4,400)/2 = $5,600.

    ii.   Stock Turnover = Cost of Sales/Average Stock = $118,400/$5,600 = 21.15 times.

    iii.  Gross Profit Percentage = Gross Profit/Sales = $131,600/$250,000 = 53%.

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Csec: May 2013, Question #2

4/3/2018

0 Comments

 
No. 2(a): Below is the completed table showing the book of original entry for each of the source information given:
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Csec: May 2013, Question #1

4/3/2018

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No. 1(a): Preparation of the Income Statement of ConEct for the year ended 31st January, 2012:
Workings:
  1. Calculation of depreciation on delivery van using the reducing balance method: 20% ($60,000 - $12,000) = $9,600. This is the depreciation charge for the Income Statement. The accumulated depreciation balance for the Balance Sheet = $12,000 + $9,600 = $21,600.
  2. The sales commissions outstanding is an amount owed to the business by VeryBerry. It is an asset and will appear under the Current Assets section of the Balance Sheet. The total sales commission for the Income Statement for the year ended 31st January, 2012 will equal the amount received plus the amount owing. That is $115,500 + $14,100 = $129,600.
  3. The rent expense needs to be adjusted for the rent owing. Therefore the rent expense figure for the Income Statement = $13,300 + $3,000 = $16,300. The outstanding rent is an accrual and will appear under the Current Liabilities section of the Balance Sheet.
  4. The insurance expense needs to be adjusted for the prepaid insurance. Therefore the insurance expense figure for the Income Statement = $7,100 - $1,800 = $5,300. The prepaid insurance is an asset and will appear under the Current Assets section of the Balance Sheet.

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    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.

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