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Csec Principles of Accounts

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Csec: May 2012, Question #7

3/29/2018

3 Comments

 
No. 7(a): Preparation of the Income Statement of Liontown Co-operative for the year ended 31st December, 2010:
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No. 7(a): Preparation of the Appropriation Account of Liontown Co-operative for the year ended 31st December, 2010:
Workings:
  1. Calculation of dividends paid = 10¢ x 55,000 shares = $5,500.
Below is the Appropriation Account of Liontown Co-operative for the year ended 31st December, 2010:
Picture
No. 7(b) (i): Identifying the type of co-operative Liontown will be classified under in year one and year two:
  1.  In the first year the Liontown Cooperative will be classified as a producer co-operative.
  2. In the second year the Liontown Cooperative will be classified as a credit union.
 
No. 7(b) (ii): One committee the Liontown Co-operative is likely to use to carry out its business:
  • One committee the Liontown Cooperative is likely to carry out is business is a loan approval committee.
 
No. 7(b) (iii): One purpose of the Member’s Education Fund:
  • To provide financial education to members of the cooperative and to the community at large. This is in keeping with one of the fundamental principles of cooperatives: a commitment to continuous education and training.
No. 7(c): Accounting for the appropriation of the surplus of $157,500 for the year ended 31st December, 2011:
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 No. 7(c): Below is the classified Balance Sheet of Liontown Cooperative as at 31st December, 2011:
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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!
3 Comments
Chelsea Mohan
7/12/2019 06:07:01 am

can you do a solution for june 2011? principle of accounts

Reply
Chelsea Mohan
7/23/2019 04:35:12 pm

entire question of june 2012

Reply
Handyman Irvine link
9/28/2022 07:23:52 am

Good reeading

Reply



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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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