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Assignment 202402 01

O level accounting

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Archford Nyika
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2 views

Assignment 202402 01

O level accounting

Uploaded by

Archford Nyika
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment – Revision

Question 1

The following information was extracted from the books of Jack Lightbourne for the year
ended 31 July 2009.

Sales 174 600

Opening inventory 6 350

Purchases 89 150

Closing inventory 8 200

Sundry expenses 69 840

Drawings 6 984

Current assets 24 600

Current liabilities 16 400

Calculate to 2 decimal place, the following ratios.

a) Gross profit to sales percentage


b) Net profit percentage
c) Rate of inventory turnover
d) Current ratio
e) Quick ratio
Question 2

Priti is a trader. Her financial year ends on 31 March. Her trial balance on 31 March 2014 was
as follows:

$ $

Capital 390 000

Drawings 54 000

Trade receivables 49 270

Trade payables 43 500

Bank 21 335

Premises at cost 300 000

Motor vehicles at cost 24 000

Provision for depreciation of fixtures and fittings 14 000

Provision for depreciation of motor vehicles 10 500

Provision for doubtful debts 2 360

Revenue 644 000

Inventory 1 April 2013 36 000

Purchases 528 850

Sales returns 1 050

Carriage inwards 750

Commission receivable 1 030

Rates and insurance 10 400


Wages 39 400

Administration expenses 5 335

Additional information:

1. At 31 March 2014:

Inventory was valued at $41 050.

Commission receivable outstanding amounted to $110.

Insurance prepaid amounted to $180.

Rates accrued amounted to $260.

Wages accrued amounted to $1 600.

2. A debt of $150 should be written off as irrecoverable and the provision for doubtful
debts should be maintained at 5% of the remaining trade receivables.
3. Fixtures and fittings are being depreciated at 20% per annum using the straight-line
method.
4. Motor vehicles are being depreciated at 25% per annum using the reducing balance
method.

Required:

a) Prepare an income statement for the year ended 31 March 2014.


b) Prepare a statement of financial position as at 31 March 2014.

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