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No. 4(a): Workings for preparation of the appropriation account of Benji and Nicka:
Calculation of interest on capital:

1. Benji = $160,000 x 10% = $16,000.
2. Nicka = $140,000 x 10% = $14,000

  
Calculation of interest on drawings:

1. Benji = $6,000 x 5% = $300
2. Nicka = $4,300 x 5% = $215

  
Calculation of share of profit using ratio of 3:2:
Remaining profits = (56,200 + 300 + 215) – (16,000 +14,000 + 5,000) = $21,715
​

1. Benji = $21,715 x 3/5 = $13,029
2. Nicka = $21,715 x 2/5 = $8,686

Now that all of the workings has been completed the Appropriation Account.

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.

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. 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. 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(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.

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%.