|
No. 5(a): Preparation of manufacturing Account for Kaycee Garments for the year ended 31st December 2017:  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!
1 Comment
No. 4(a): Workings for preparation of the appropriation account of Benji and Nicka:
Calculation of interest on capital:
Calculation of interest on drawings:
Calculation of share of profit using ratio of 3:2: Remaining profits = (56,200 + 300 + 215) – (16,000 +14,000 + 5,000) = $21,715
 We 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! No. 2(a) (i): Formulae and comments on the gross profit margin and the operating expenses/sales revenue ratios:
Gross Profit Margin: The formula to compute gross profit margin is; Gross profit x 100 Sales The gross profit margin for the year ended 31st December 2017 was 24%. This means that for every $1 of sales revenue earned the business had $0.24 to help cover the expenses for that period. This is a 4% increase when compared to the gross profit margin of 2016 and thus a strength, or a positive thing for the business. Operating Expenses/Sales Revenue: The formula to compute operating expenses/sales revenue is; Operating Expenses x 100 Sales Revenue The operating expenses/sales revenue for the year ended 31st December 2017 was 11%. This means that for every $1 of sales revenue earned the business paid $0.11 towards expenses for that period. This is a 2% increase opposed to the $0.09 they paid in 2016. This may be perceived as a negative thing as it means that the expenses of the business increased during 2017. Please note however, that there may be a number of reasons for this such as increased sales resulting in increased expenses, and therefore may not necessarily be a sign of weakness. No. 1(a): Preparation of Cash Book for the month of 31st March 2018. Workings: 1. 26th March 2018 the total of the cheque to Jeff’s Air-Con: Cheque will equal $7,500 less a 5% discount. The discount equals 5% x $7500 = $375. Therefore the cheque total equals = $7,500 - $375 = $7,125. 2. 30th March 2018 the total of the cheque received from Layby Stores: Invoice total on the 13th March sent to Layby Stores equals $2,250 less 20% trade discount. The discount equals 20% x $2,250 = $450. Therefore the invoice total equals = $1,800. 19th March 2018 the total of the credit note sent to Layby Stores equals $200 less 20% trade discount. The discount equals 20% x $200 = $40. Therefore the credit note total equals $200 - $40 = $160. This means that the total on Layby Store’s account on the 30th March 2018 = $1800 - $160 = $1640. Layby Stores was given a cash discount of $150 therefore the cheque received from Layby will equal $1640 - $150 = $1,490. Now that the workings has been completed the Cash Book for the month ended 31st March, 2018 can be prepared.
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:  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! No. 6(a) (i): The fixed assets of Sautec Credit Union are:
No. 6(a) (ii): The current liabilities of Sautec Credit Union are:
No. 6(a) (iii): Below is the Balance Sheet Extract of Sautec Credit Union showing the capital section as at 1st January 2013:
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:  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! No. 4(a): Calculation of missing figures and preparation of the Statement of Raw Materials Consumed: Calculation of missing figures:
Below is the Statement of Raw Materials Consumed:  No. 2(a): Calculation of currents assets and current liabilities using the current ratio:
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%. |
AuthorThe 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
April 2019
Categories
All
|
RSS Feed